JG Chemicals Fixes Price Band For Rs 251.19 Cr IPO To Open On March 5

For its initial public offering (IPO), J.G. Chemicals Limited, the largest producer and revenue generator of zinc oxide in India, has set a price band of Rs 210/- to Rs 221/- each equity share with a face value of Rs 10/-each. The company's initial public offering (IPO) will go live for subscriptions on Tuesday, March 5, 2024, and end on Thursday, March 7, 2024.

The JG Chemicals main-board IPO is a book-built issue of Rs 251.19 crores. The issue consists of an offer to sale (OFS) of 0.39 crore shares, valued at Rs 86.19 crores, and a fresh issuance of 0.75 crore shares, totalling Rs 165.00 crores. Investors can bid for a minimum of 67 equity shares and in multiples of 67 equity shares thereafter. Therefore, regular investors need to invest a minimum of Rs 14,807 for subscriptions. The minimum lot size investment for bNII is 68 lots of 4,556 shares amounting to Rs 1,006,876 required for bidding; for sNII, it is 14 lots of 938 shares, or Rs 207,298.

As per the DRHP of JG Chemicals, proceeds from the fresh issue to the extent of (A) Rs. 910.58 million will be utilised for investing in JG Chemicals' Material Subsidiary by way of (i) Rs. 600 million for funding its long-term working capital requirements, (ii) Rs 60.58 million for setting up of a research and development center at Naidupeta, Andhra Pradesh and (iii) Rs 250.00 million for repayment or pre-payment, in full or in part, of all or certain borrowings availed by the Material Subsidiary; (B) Rs 350.00 million will be utilised for funding the long-term working capital requirements of J.G.Chemicals Limited, and (C) general corporate purposes.

KFin Technologies Limited is the registrar of the IPO, while the book-running lead managers are Centrum Capital Limited, Emkay Global Financial Services Limited, and Keynote Financial Services Limited. The equity shares are proposed to be listed on the BSE and NSE platforms. On Monday, March 11, 2024, the allocation of shares for the JG Chemicals IPO is anticipated to be completed. The scheduled listing date of JG Chemicals IPO is set for Wednesday, March 13, 2024.

By French process, J.G. Chemicals and its subsidiary rank as the largest producers and revenue generators of zinc oxide in India, with a roughly 30% market share as of March 2022. The predominant production technique for creating zinc oxide, which is used by all of the main manufacturers in the Americas, Europe, and Asia, is the French process.

Being one of the top ten producers of zinc oxides worldwide, it offers more than 80 grades of zinc oxide for sale. The primary users of its product in India are companies in the tyre sector. Leading Indian producers of paints, footwear, and cosmetics are also served by the company. Its product is used in a broad range of industrial applications, such as rubber (tyres and other rubber products), ceramics, paints and coatings, batteries and electronics, medicines and cosmetics, agro-chemicals and fertilisers, specialty chemicals, lubricants, oil and gas, and animal feed.

The latest GMP for JG Chemicals IPO was Rs 60 as of March 1, 2024, 09:55 AM, according to the grey market. The expected listing price of JG Chemicals IPO considering the price band of Rs 221.00 is Rs 281 (upper price band + today's GMP). Therefore, based on the current GMP, the estimated listing premium over and above the issue price is 27.15%, as reported by grey market monitors.