JG Chemicals Ltd. IPO

JG Chemicals Ltd.

IPO Listing Details

Listed On

BSE & NSE

Listed On

Issue Price

₹221

Issue Price

Listing Price

₹211

Listing Price

Listing Gains

-₹10.00 (-4.52%)

Listing Gains

IPO Details

Bidding Dates

05 Mar - 07 Mar '24

Bidding Dates

Min. Investment

₹14,070

Min. Investment

Lot Size

67.00

Lot Size

Price Range

₹210 - ₹221

Price Range

Issue Size

239 Cr

Issue Size

Subscription Rate

  • Retail Individual Investor
    17.44x
  • Non-Institutional Investor
    46.33x
  • Qualified Institutional Buyers
    32.09x
  • Employees


About Company

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.

Important Dates - JG Chemicals IPO

Application opens on 05th March 2024
Last date of application 07th March 2024
Date of Allotment 11th March 2024
Refund begins from 12th March 2024
Credit of shares to Demat 12th March 2024
Listing date 13th March 2024

Why should you invest in JG Chemicals Ltd. IPO?

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. 

 

JG Chemicals IPO Grey Market Premium

Date GMP
2nd March Rs.50
01st March Rs.60
29th February Rs.60

 

JG Chemicalsy IPO Noteworthy Highlights

The following goals are what the company plans to use the net proceeds for:

  1. Investment in its 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.
  2. Financing the company's long-term working capital needs.
  3. General objectives of the company.


JG Chemicals Ltd. IPO - SWOT Analysis

Strengths

  1. Greater annual profit growth than sectoral profit growth.
  2. Return on equity (ROE) has improved during the past two years because of efficient use of shareholder funds.
  3. Profitable asset management has improved over the past two years in terms of return on assets.

Weaknesses

  1. Reduced Net Cash Flow: Businesses are unable to produce net cash.

Opportunities

  1. Low-Debt Company.
  2. Robust capacity to generate cash from core business - increasing cash flow from operations during the previous two years.
  3. Over the past two years, annual net profits have improved.

Threats

  1. The high price of product development and the challenging chemistry of innovation.
  2. Modifying products to meet specific customer requirements, which calls for a thorough and drawn-out supplier qualification process as well as the requisite technical know-how.

 

Financial Snapshot - JG Chemicals IPO

Check out the financial performance of JG Chemicals for recent years:

Financial Year Total Assets Total Revenues Net Profit
March 2021 Rs 209.94 crore Rs 440.41 crore Rs 28.80 crore
March 2022 Rs 264.14 crore Rs 623.05 crore Rs 43.13 crore
March 2023 Rs 297.79 crore Rs 794.19 crore Rs 56.79 crore



How to apply for JG Chemicals Ltd. IPO?

You can apply for the JG Chemicals Ltd. IPO in these ways:

UPI
Link your personal bank A/C to a trusted UPI ID and map it with your TradeSmart account. Now, proceed further to book your IPO. On acceptance of the mandate, the bid amount will get blocked in your bank account Learn more.

Demat Account

1. If you are an Existing TradeSmart demat account holder and wish to apply for an JG Chemicals Ltd. click here.
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JG Chemicals Ltd. IPO FAQs

What are the opening and closing dates for JG Chemicals Limited?

JG Chemicals Limited IPO will open for subscription on March 05 and close on March 07.

What is the price per share for JG Chemicals Limited?

The price band for JG Chemicals Limited is ₹210 to ₹221 per share.

What is the minimum and maximum lot size for the JG Chemicals Limited?

The minimum lot size is 67 shares. 

Who are JG Chemicals Limited Lead Managers?

Centrum Capital Limited, Emkay Global Financial Services Limited, and Keynote Financial Services Limited are the Book Running Lead Managers (BRLM) to the issue.

Who is the registrar of the issue?

Kfin Technologies Limited is the registrar for JG Chemicals Limited.

When will the JG Chemicals Limited  allotment take place?

The finalisation of the basis of allotment for JG Chemicals Limited will be done on March 11, 2024, and the allotted shares will be credited to investors’ demat accounts by March 12, 2024.

When and where will the JG Chemicals Limited  shares be listed?

The equity shares of JG Chemicals Limited are proposed to be listed on March 13, 2024, on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

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