J G Chemicals IPO; Chemicals company IPO to begin from March 05; Key Details here

J G Chemicals is into Industrial Chemicals and is looking raise funds through Fresh Issue and Offer For Sale

J G Chemicalsto raise around Rs 251 crores through public issue IPO

J G Chemicals IPO is a public offering of shares by Suresh Jhunjhunwala, Anirudh Jhunjhunwala and Anuj Jhunjhunwala. The IPO will open on March 05 and will close on March 07. The price band is ₹210 to ₹221 per share and the lot size is 67 shares. The issue size is ₹251.19 crore. The shares are expected to be listed on NSE, BSE on March 13 (^). Some additional information that you may find useful are: Share of revenues from Rubber and tyres / Pharmaceuticals & chemicals / Agriculture / Others for FY23 at 90.5% / 6.8% / 0.9% / 1.8% (90.1% / 6.4% / 2.1% / 1.5% in FY22): (**) - based on higher price band (^) indicative date

Also READ: Kolkata based Chemicals Company J G Chemicals files DRHP with SEBI for the proposed IPO; Key Details here

Key Pointers of J G Chemicals IPO:

Promoters of the company are Suresh Jhunjhunwala, Anirudh Jhunjhunwala and Anuj Jhunjhunwala Currently promoters hold 100% stake in the company. While post-equity promoters stake will be 70.99%

Company has not undertaken Pre-IPO placement.

• Company aims to raise between Rs 247 to 251 crs through this IPO.
• The net proceeds of the issue will be utilized to 1) Investment in Subsidiary towards i) Repayment/Pre-payment of borrowings - Rs25 crs ii) Funding Capital Expenditure - Rs6.06 crs iii) Long-Term Working Capital - Rs 60 crs. 2) Funding long-term working capital requirements of the company - Rs35 crs. and 3) General corporate purposes
• Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 04-Mar-24.
• Price band for the IPO has been fixed at Rs 210 to 221 per share and bid lot are in multiple of 67 shares. The implied market cap post-issue at Rs 831 to 866 crs.
• As per the tentative schedule, allotment date of this IPO is most likely on March 11 and share are expected to be listed on NSE, BSE on March 13.
• Company has direct competition with listed players including Rajratan Global Wire Limited, NOCIL Limited and Yasho Industries Limited.
• Centrum Capital, Emkay Global, Keynote Financial Services has been appointed as Merchant Banker to the issue. Kfin Technologies Ltd. has been appointed as official registrar of the issue.

About J G Chemicals Limited

J G Chemicals Limited

J G Chemicals established in 2001 is India’s largest zinc oxide manufacturer in terms of production and revenue for zinc oxide manufacturing through French process, which is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in Americas, Europe and Asia. It sell over 80 grades of zinc oxide and are among the top ten manufacturers of zinc oxides globally. Its product caters to a wide spectrum of industrial applications, including in the rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, specialty chemicals, lubricants, oil & gas and animal feed.

Plants have total installed capacity of 77,040 MTPA is spread across our three manufacturing facilities located at (i) Jangalpur (Kolkata, West Bengal); (ii) Belur (Kolkata, West Bengal); and (iii) Naidupeta (Nellore District, Andhra Pradesh), which is the largest manufacturing facility and is owned and operated by our Material Subsidiary.

Key products manufactures are i) Zinc Oxide having capacity of 59,904 MT, ii) Zinc Ingots having capacity of 7,056 MT and iii) Zinc Sulphate and other allied chemicals having capacity of 10,080 MT.

Share of revenues from Rubber and tyres / Pharmaceuticals & chemicals / Agriculture / Others for FY23 at 90.5% / 6.8% / 0.9% / 1.8% (90.1% / 6.4% / 2.1% / 1.5% in FY22)

Also READ: R K Swamy IPO; ITES company IPO to begin from March 04; Key Details here Exicom Tele-Systems IPO; Power Management Solution company IPO to begin from February 27; Key Details here

About Industry

India ranked sixth in terms of global chemical sales with a contribution of USD 105 billion and accounted for a share of 2.7% during the year. In terms of volume, the zinc oxide production in India has been around 100 – 115 thousand tonnes in the past 5 years from Fiscal 2018 to 2022. During this period, the Indian zinc oxide market size is estimated at around ₹ 18,000 million to around ₹ 20,000 million. The Indian zinc oxide industry includes limited organized players, who constitute a major portion of the market due to high entry barriers for any new entrant.

Source: SEBI, BSE, NSE, DRHP, IPO Status, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.