JG Chemicals Limited IPO: An Overview and Corporate Insight
Founded in 1975, JG Chemicals Limited uses the French method to produce zinc oxide. Over 80 different grades of zinc oxide are produced by the company.
Utilised in a wide range of industrial applications, zinc oxide finds usage in lubricants, specialty chemicals, agrochemicals and fertilisers, electronics and batteries, paints and coatings, pharmaceuticals and cosmetics, and animal feed.
The company runs three production plants in Naidupeta in the Nellore District of Andhra Pradesh, as well as Jangalpur and Belur near Kolkata, West Bengal. The largest facility, Naidupeta, is owned and run by its subsidiary, BDJ Oxides. Every production facility possesses ISO 9001:2015 accreditation, ISO 14001:2015 certification, and ISO 45001:2018 certification. Over 200 domestic and 50 foreign clients in more than ten countries have had their demands met by the business.
Grey Market Premium Analysis and IPO Timelines – JG Chemicals Limited IPO
| Date | GMP |
| March 02, 2024 | ₹50 |
| March 01, 2024 | ₹60 |
| February 29, 2024 | ₹60 |
JG Chemicals’ most recent GMP, as of March 2, 2024, at 02:58 PM, is ₹50. The projected listing price for the JG Chemicals IPO is ₹271 (cap price + today’s GMP), with a price band of 221, 22.62% is the anticipated gain/loss per share.
Pricing Details and Lot Size – JG Chemicals Limited IPO
The price band for JG Chemicals Limited IPO is ₹210 to ₹221 per share.
Book-Running Lead Managers and Registrar – JG Chemicals Limited IPO
The book running lead managers of the JG Chemicals IPO are Centrum Capital Limited, Emkay Global Financial Services Ltd, and Keynote Financial Services Ltd. The registrar of the offering is Kfin Technologies Limited.
Offer for Sale and IPO Size Breakdown – JG Chemicals Limited IPO
The Rs 251.19 crore JG Chemicals IPO is a book-built issue. The issue consists of a new issuance of 0.75 crore shares, valued at Rs 165.00 crores, and an offer to sell 0.39 crore shares, valued at Rs 86.19 crores.
IPO Timelines at a Glance – JG Chemicals Limited IPO
| Event | Date |
| IPO Opening Date | March 05, 2024 |
| IPO Closing Date | March 07, 2024 |
| IPO Allotment Date | March 11, 2024 |
| Initiation of Refunds | March 12, 2024 |
| Credit of Shares to Demat | March 12, 2024 |
| IPO Listing Date | March 13, 2024 |
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Utilisation of Fresh Issuance and Technological Advancements – JG Chemicals Limited IPO
The following goals are what the company plans to use the Net Proceeds for:
- Investment in Material Subsidiary, BDJ Oxides, supports three key objectives: (i) full or partial repayment or prepayment of all or a portion of the borrowings taken out by its Material Subsidiary; (ii) financing the capital expenditures necessary to establish a research and development centre (R&D Centre) in Naidupeta, Andhra Pradesh; and (iii) financing its long-term working capital requirements.
- Financing the company’s long-term working capital needs.
- General objectives of the company.
Find our more details of the IPO such as SWOT analysis and financial history here.
Conclusion
Since being incorporated in 2001, the firm has developed in size and scope, becoming a significant global player in the zinc oxide industry with a varied product line. Its product is used in a wide 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.
It has over 40 years of experience in manufacturing, which allows it to serve a diverse range of clients. It has established enduring relationships with clients in the tyre, ceramic, rubber, paint, cosmetic, and battery industries. More than 200 local clients and more than 50 international customers in more than ten countries have been served by JGCL’s product marketing and sales efforts during the past three years. For a manufacturer of zinc oxide, customising products to meet customer demands is a prerequisite in the majority of its end-use industries. This requirement typically serves as a significant barrier to entry.
Frequently Asked Questions (FAQ) – JG Chemicals Limited IPO
Q. What does JG Chemicals Limited specialise in?
The company specialises in producing zinc oxide. Over 80 different grades of zinc oxide are produced by the company. Utilised in a wide range of industrial applications, zinc oxide finds usage in lubricants, specialty chemicals, agrochemicals and fertilisers, electronics and batteries, paints and coatings, pharmaceuticals and cosmetics, and animal feed.
Q. What is the primary purpose of JG Chemicals Limited’s IPO?
The goals that the company plans to use the Net Proceeds for are investment in its subsidiary, BDJ Oxides, to support three key objectives: (i) full or partial repayment or prepayment of all or a portion of the borrowings taken out by its material subsidiary; (ii) financing the capital expenditures necessary to establish a research and development centre (R&D Centre) in Naidupeta, Andhra Pradesh; and (iii) financing its long-term working capital requirements, financing the company’s long-term working capital needs, and general objectives of the company.
Q. Who are the lead managers for JG Chemicals Limited’s IPO?
Centrum Capital Limited, Emkay Global Financial Services Limited, and Keynote Financial Services Limited are the Book Running Lead Managers (BRLM) to the issue.
Q. How is the IPO structured in terms of new issuance and offer for sale (OFS)?
The Rs 251.19 crore JG Chemicals IPO is a book-built issue. The issue consists of a new issuance of 0.75 crore shares, valued at Rs 165.00 crores, and an offer to sell 0.39 crore shares, valued at Rs 86.19 crores.
Q. What is the lot size and minimum investment for retail investors in the JG Chemicals Limited IPO?
JG Chemicals Limited IPO lot size is 67 shares, and the minimum amount required is ₹14,807.
Q. What is the price band for the JG Chemicals Limited IPO?
The price band for JG Chemicals Limited IPO is ₹210 to ₹221 per share .
Q. How has the Grey Market Premium (GMP) trend for JG Chemicals Limited IPO?
JG Chemicals’ most recent GMP, as of March 2, 2024, at 02:58 PM, is ₹50. The projected listing price for the JG Chemicals IPO is ₹271 (cap price + today’s GMP), with a price band of 221, 22.62% is the anticipated gain/loss per share.
Q. When does the IPO open and close for subscription?
JG Chemicals Limited IPO will open for subscription on March 05, 2024 and close on March 07, 2024.
Q. When is the allotment date for the JG Chemicals Limited IPO?
The allotment date is set for March 11, 2024.
Q. When is JG Chemicals Limited expected to be listed on the stock exchanges?
The anticipated listing date for JG Chemicals Limited IPO is March 13, 2024 on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
