J.G. Chemicals Ltd’s IPO to open on Tue, March 5
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Mumbai/Kolkata: J.G. Chemicals Limited has fixed the price band of ₹210/- to ₹221/- per Equity Share of face value ₹10/- each for its maiden initial public offer. The Initial Public Offering (IPO) of the Company will open on Tuesday, March 5, 2024, for subscription and close on Thursday, March 7, 2024. Investors can bid for a minimum of 67 Equity Shares and in multiples of 67 Equity Shares thereafter.
The issue consists of a fresh issue of equity shares worth Rs 1,650 million and an offer for sale (OFS) of up to 3.90 million equity shares by investor selling shareholders.
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 centre 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.
J.G. Chemicals along with its subsidiary are India’s largest zinc oxide manufacturer in terms of production and revenue through French process, with a market share of around 30% as of March 2022.
It sells over 80 grades of zinc oxide and are among the top ten manufacturers of zinc oxides globally. Companies in the tyre industry in India are the largest consumers of its product. The Company also supplies to leading paints manufacturers, footwear players and cosmetics players in India.
Its product caters to a wide spectrum of industrial applications, including in the rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, speciality chemicals, lubricants, oil & gas and animal feed.
Centrum Capital Limited, Emkay Global Financial Services Limited, and Keynote Financial Services Limited are the book running lead managers and KFin Technologies Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.
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