Jasons Industries IPO- The Company Gets Market Regulator SEBI Nod For IPO

Mumbai-based Jesons Industries has received approval from the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO), the company informed via a press release. Jesons Industries, a manufacturer of speciality coating emulsions (SCE) to raise an estimated Rs 800-900 crore through an initial share sale.

According to the DRHP, the IPO will include a fresh issue of up to Rs 120 crore, a reservation of up to 77,000 equity shares for employees, and an offer for sale of up to 12,157,000 equity shares by Dhiresh Shashikant Gosalia, a promoter entity with 86.53%, and individual promoters such as Madhavi Dhiresh Gosalia, Ravina Gaurav Shah, and Jhelum Dhiresh Gosalia. The IPO offers a reservation of up to 77,000 equity shares for employees. The shares of the company are proposed to be listed on NSE and BSE.

Jesons Industries may contemplate a private issue of up to Rs 24 crore in equity shares. If the pre-IPO placement is successful, the size of the new issue will be lowered. The proceeds from the new share offering would be used to repay or prepay in full or part of borrowings taken out by its subsidiary, as well as for general corporate purposes, to the tune of Rs 90 crore.

Jesons Industries' revenues from operations increased by 20.45% to Rs 1,085.72 Cr in fiscal 2021 from Rs 901.37 Cr in fiscal 2020, while its net profit jumped 213.25% to Rs 29.65 Cr from Rs 92.88 Cr.
The issue's book running lead managers are Axis Capital and JM Financial, and the registrar is Link Intime.

Jesons Industries

Mumbai-based Jesons Industries is one of the leading manufacturers of SCE and water-based pressure-sensitive adhesives (PSA) in tape and label segments. Jesons sells its SCE and PSA products to companies like Berger Paints, Kamdhenu Paints, Indigo Paints, JSW Paints, Shalimar Paints, Cosmos Twisters, Nippon Paints, Cellotape, Sarvodaya Industries, Mexim Adhesives, Storm Infracon, and SMI Coated Products in India, as well as Apollo Paints, Moon Star Paints, Kansai Nerolac, Caparol Paints.

Furthermore, it also supplies SCE products to various players in the construction chemicals industry such as Forsoc Chemicals, SIKA India. Its products are used in various end-user industries, such as paints, packaging, and chemicals for construction, leather, textiles, carpet, and paper. The company has a strong foothold in high-growth markets across Asia-Pacific, the Middle East and Africa (MEA), for both SCE and PSA products.