JG Chemicals IPO will open for subscription from 05 March 2024. The company aims for an issue size of ₹251.19 Cr through this IPO.
Company Overview
| Full name | JG Chemicals Limited |
| Sector | Chemicals |
| Industry | Chemicals |
| Company Website | https://jgchem.com/ |
About Company
Established in 2001, JG Chemicals has significantly expanded its business and scale of operations, evolving into a major, diversified zinc oxide player with a global presence. The company’s products serve a broad spectrum of industrial applications, including rubber (tyres and other rubber products), ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics, and batteries, agrochemicals and fertilizers, specialty chemicals, lubricants, oil and gas, and animal feed.
JG Chemicals has established enduring relationships with customers across various end-user industries, including tires, ceramics, rubber, paints, cosmetics, and batteries. In the past three years, the company has marketed and sold its products to over 200 domestic customers and over 50 global customers spanning more than 10 countries. As of 31 October 2022, JG Chemicals’ total installed capacity of 77,040 metric tons per annum (MTPA) is distributed among three manufacturing facilities located in (i) Jangalpur (Kolkata), (ii) Belur (Kolkata), and (iii) Naidupeta (Andhra Pradesh). As of 31 October 2022, JG Chemicals employed 49 contract workers.
The Objectives of the Issue
- Investment in Material Subsidiary, viz. BDJ Oxides (i) repayment or pre-payment, in full or in part, of all or certain borrowings availed by its Material Subsidiary; (ii) funding capital expenditure requirements for setting up of a research and development center situated in Naidupeta, Andhra Pradesh (R&D Centre); and (iii) funding its long-term working capital requirements;
- Funding long-term working capital requirements of the Company; and
- General corporate purposes.
JG Chemicals IPO Timetable
| IPO Opening date | 05 March 2024 |
| IPO Closing | 07 March 2024 |
| Basis of Allotment | 11 March 2024 |
| Initiation Refund | 12 March 2024 |
| Credit to Demat Account | 12 March 2024 |
| Listing Date | 13 March 2024 |
JG Chemicals IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹251.19 Cr – 11,366,063 shares |
| Fresh Issue | ₹165 Cr – 7,466,063 shares |
| Offer for sale | ₹86.19 Cr – 3,900,000 shares |
| Face value | ₹10 per share |
| Price Band | ₹210 to ₹221 per share |
| Lot size | 67 Shares |
| Shareholding pre-issue | 31,720,000 |
| Shareholding post-issue | 39,186,063 |
| Listing Exchange | BSE & NSE |
JG Chemicals IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 67 | ₹14,807 |
| Retail (Max) | 13 | 871 | ₹192,491 |
| S-HNI (Min) | 14 | 938 | ₹207,298 |
| S-HNI (Max) | 67 | 4,489 | ₹992,069 |
| B-HNI (Min) | 68 | 4,556 | ₹1,006,876 |
JG Chemicals IPO Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
JG Chemicals Financial Performance
| FY 2020 | FY 2021 | FY 2022 | FY 2023 | 9M FY 2024 | |
| Revenue | 399.39 | 435.30 | 612.83 | 784.58 | 486.32 |
| Expenses | 388.16 | 399.21 | 565.60 | 717.50 | 464.34 |
| Net income | 13.95 | 28.80 | 43.13 | 56.79 | 18.51 |
| Margin (%) | 3.49 | 6.62 | 7.04 | 7.24 | 3.81 |
JG Chemicals Valuations & Margins
| | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
| EPS | 4.08 | 7.39 | 12.61 | 17.32 |
| PE ratio | – | – | – | 12.12 – 12.76 |
| RONW (%) | 15.25 | 21.61 | 27.09 | 27.49 |
| NAV | 26.78 | 34.20 | 46.55 | 63.02 |
| ROCE (%) | 18.36 | 25.27 | 25.83 | 29.38 |
| EBITDA (%) | 6.80 | 11.17 | 10.83 | 10.85 |
| Debt/Equity | 0.62 | 0.69 | 0.62 | 0.34 |
Company Promoters
- Suresh Jhunjhunwala
- Anirudh Jhunjhunwala
- Anuj Jhunjhunwala.
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding |
JG Chemicals IPO Lead Manager(s)
- Centrum Capital Limited
- Emkay Global Financial Services Ltd
- Keynote Financial Services Ltd
JG Chemicals Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Tel: +91 40 6716 2222
E-mail: jgchemicals.ipo@kfintech.com
Website: www.kfintech.com
JG Chemicals Contact Details
J.G.CHEMICALS LIMITED
34A, Metcalfe Street,
Kolkata – 700 013, West Bengal
Phone: +91 33 4014 0100
Email: corporate@jgchem.com
Website: www.jgchem.com
JG Chemicals IPO Allotment Status
JG Chemicals IPO allotment status will be available on the KFin Tech website. Click on this link to get allotment status.
Final thoughts
JG Chemicals IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
