Pic Credit: JG Chemicals Official Website
J.G. Chemicals Limited (JG Chemicals IPO) and our subsidiary, BDJ Oxides Private Limited, are integral parts of the BDJ Group. Since our establishment in 1975, we’ve been dedicated to producing Zinc Oxide. The BDJ Group, backed by the esteemed “Jhunjhunwala” Family, boasts a legacy of over 90 years in Trade and Industry, contributing significantly to India’s industrial growth.
JG Chemicals sets IPO price range at ₹210-221 per share, securing ₹75.35 crore from anchor investors. Renowned as India’s leading zinc oxide producer, the company boasts a robust global market footprint.
JG Chemicals IPO Subscription Status: Buzz Among Retail and Non-Institutional Investors Continues on Day 2, Reflecting Strong Interest. According to BSE figures, JG Chemicals IPO subscription was 6.40 times oversubscribed, with retail investors oversubscribing by 8.32 times, non-institutional investors (NIIs) by 9.64 times, and qualified institutional buyers (QIBs) booking 45% of the shares.
Within hours of opening, retail subscription was fully subscribed, marking a stellar start to JG Chemicals IPO on the first day itself. As per BSE figures, subscription status stood at 2.47 times.
Retail investors subscribed 3.64 times, NIIs 2.90 times, and QIBs 2% of the shares. More than 50% of shares in the public offering are not reserved for QIBs, less than 15% for NIIs, and less than 35% for the proposal. Retail investors.
JG Chemicals IPO will be open for subscription on Tuesday, March 5, and will close on Thursday, March 7.
The price band for JG Chemicals IPO is set at ₹210 to ₹221 per equity share with a minimum bid of 67 equity shares and thereafter in multiples of 67 equity shares. JG Chemicals raised ₹75.35 crore from anchor investors on Monday, March 4.
According to the Red Herring Prospectus (RHP), JG Chemicals is the largest producer of zinc oxide in India in terms of production and revenue. The company is among the top 10 producers of zinc oxide worldwide and distributes over 80 grades of metal.
Its products are used in various industrial sectors including rubber (tire and related products), ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics and batteries, agricultural chemicals and fertilizers, specialty chemicals, lubricants, oils and gases, and animal feed.
As per the RHP, the company’s listed partners include Rajratna Global Wire Limited (with a PE of 33.43), Nocil Limited (with a PE of 30.97), and Yasho Industries Limited (with a PE of 30.03).
Between March 31, 2022, and March 31, 2023, JG Chemicals Limited’s post-tax profit (PAT) increased by 31.69%, while its sales increased by 27.47%.
JG Chemicals IPO: Discover the Latest Subscription Update Revealed!
Data from the BSE indicates that JG Chemicals IPO has garnered bids for 5,22,81,976 shares, surpassing the 81,68,714 shares on offer.
Here’s a breakdown:
- Retail investors’ segment witnessed bids for 3,42,47,050 shares against 41,15,000 shares available.
- Non-institutional investors’ segment received bids for 1,69,99,240 shares compared to 17,63,572 shares on offer.
- Qualified Institutional Buyers (QIBs) segment has received bids for 10,35,686 shares out of 22,90,142 shares available.
Exploring JG Chemicals IPO Information
JG Chemicals IPO, valued at 251.19 crore, features a fresh issue of ₹165 crore and an offer-for-sale (OFS) of up to 3,900,000 equity shares with a face value of ₹10, totaling ₹86.19 crore. The selling shareholders include Vision Projects & Finvest Private Ltd (offloading up to 2,028,900 shares), Jayanti Commercial Limited (selling up to 1,100 shares), Suresh Kumar Jhunjhunwala (HUF) (selling up to 1,260,000 shares), and Anirudh Jhunjhunwala (HUF) (offloading up to 610,000 shares).
The company plans to utilize the net proceeds for investing in its Material Subsidiary, BDJ Oxides, repaying or prepaying borrowings of the Material Subsidiary, funding capital expenditures for establishing a research and development center in Naidupeta, and financing extended working capital needs.
Centrum Capital Limited, Emkay Global Financial Services Ltd, and Keynote Financial Services Ltd serve as the book running lead managers, while Kfin Technologies Limited is the registrar of the offering.