JG Chemicals IPO is a book built issue of Rs 251.19 crores. The issue is a combination of fresh issue of 0.75 crore shares aggregating to Rs 165.00 crores and offer for sale of 0.39 crore shares aggregating to Rs 86.19 crores.
JG Chemicals IPO opens for subscription on March 5, 2024 and closes on March 7, 2024. The allotment for the JG Chemicals IPO is expected to be finalized on Monday, March 11, 2024. JG Chemicals IPO will list on BSE, NSE with tentative listing date fixed as Wednesday, March 13, 2024.
JG Chemicals IPO price band is set at ₹210 to ₹221 per share. The minimum lot size for an application is 67 Shares. The minimum amount of investment required by retail investors is ₹14,807. The minimum lot size investment for sNII is 14 lots (938 shares), amounting to ₹207,298, and for bNII, it is 68 lots (4,556 shares), amounting to ₹1,006,876.
Centrum Capital Limited, Emkay Global Financial Services Ltd and Keynote Financial Services Ltd are the book running lead managers of the JG Chemicals IPO, while Kfin Technologies Limited is the registrar for the issue.
Refer to JG Chemicals IPO RHP for detailed information.
JG Chemicals IPO Details
| IPO Date | March 5, 2024 to March 7, 2024 |
| Listing Date | [.] |
| Face Value | ₹10 per share |
| Price Band | ₹210 to ₹221 per share |
| Lot Size | 67 Shares |
| Total Issue Size | 11,366,063 shares (aggregating up to ₹251.19 Cr) |
| Fresh Issue | 7,466,063 shares (aggregating up to ₹165.00 Cr) |
| Offer for Sale | 3,900,000 shares of ₹10 (aggregating up to ₹86.19 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 31,720,000 |
| Share holding post issue | 39,186,063 |
JG Chemicals IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not more than 50% of the Net Issue |
| Retail Shares Offered | Not less than 35% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
JG Chemicals IPO Timeline (Tentative Schedule)
JG Chemicals IPO opens on March 5, 2024, and closes on March 7, 2024.
| IPO Open Date | Tuesday, March 5, 2024 |
| IPO Close Date | Thursday, March 7, 2024 |
| Basis of Allotment | Monday, March 11, 2024 |
| Initiation of Refunds | Tuesday, March 12, 2024 |
| Credit of Shares to Demat | Tuesday, March 12, 2024 |
| Listing Date | Wednesday, March 13, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on March 7, 2024 |
JG Chemicals IPO Lot Size
Investors can bid for a minimum of 67 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| 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 |
| Lot Size Calculator | |||
JG Chemicals IPO Promoter Holding
The Promoters of the company are Suresh Jhunjhunwala, Anirudh Jhunjhunwala and Anuj Jhunjhunwala.
| Share Holding Pre Issue | 100.00% |
| Share Holding Post Issue |
About JG Chemicals Limited
JG Chemicals Limited was founded in 1975 and is a zinc oxide manufacturer using the French process. The company produces more than 80 grades of zinc oxide.
This product is used in various industrial applications such as ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics and batteries, agrochemicals and fertilizers, specialty chemicals, lubricants, oil and gas, and animal feed.
The company operates three manufacturing facilities in Jangalpur and Belur, both in Kolkata, West Bengal and Naidupeta in Nellore District, Andhra Pradesh. Naidupeta is the largest facility, owned and operated by the Material subsidiary. All manufacturing facilities are ISO 45001:2018 and ISO 14001:2015 certified and ISO 9001:2015 accredited.
The company has served the needs of more than 200 local and 50 international customers in more than 10 countries.
As of December 31, 2023, the company employed 112 permanent employees, over 100 workers and apprentices.
For the nine-month period ended December 31, 2023 and the financial years 2023, 2022 and 2021, the Company recorded operating income of ₹ 4,863.22 million, ₹ 7,845.76 million, ₹ 6,128.30 million and ₹ 4,352.98 million respectively.
JG Chemicals Limited Financial Information (Restated Consolidated)
JG Chemicals Limited’s revenue increased by 27.47% and profit after tax (PAT) rose by 31.69% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
| Assets | 271.26 | 297.79 | 264.14 | 209.94 |
| Revenue | 491.10 | 794.19 | 623.05 | 440.41 |
| Profit After Tax | 18.51 | 56.79 | 43.13 | 28.80 |
| Net Worth | 217.86 | 199.89 | 147.66 | 108.48 |
| Reserves and Surplus | 193.22 | 175.67 | 151.23 | 107.17 |
| Amount in ₹ Crore | ||||
Key Performance Indicator
The market capitalization of JG Chemicals IPO is Rs 866.01 Cr.
KPI as of December 31, 2023.
| KPI | Values |
|---|---|
| ROE | 8.20% |
| ROCE | 11.86 % |
| Debt/Equity | 0.11 |
| RoNW | 8.16% |
| P/BV | 3.51 |
| PAT Margin (%) | 7.24 |
Check JG Chemicals IPO Peer Comparison here.
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 13.6 | 11.01 |
| P/E (x) | 16.25 | 20.08 |
Note:
- The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2022 that is available in RHP.
- The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of March 31, 2022 that is available in RHP.
Objects of the Issue (JG Chemicals IPO Objectives)
The company intends to utilize the Net Proceeds towards the following objects:
- 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 Limited Contact Details
JG Chemicals Limited
34A,
Metcalfe Street,
Kolkata – 700 013
Phone: +91 33 4014 0100
Email: corporate@jgchem.com
Website: https://jgchem.com/
JG Chemicals IPO Registrar
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: jgchemicals.ipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/