JG Chemicals Limited

JG Chemicals Limited

listed
₹14,070Min. investment
  1. Bid start
    5 Mar
  2. Bid end
    7 Mar
  3. Allotment
    7 Mar
  4. Release of funds
    12 Mar
  5. Demat transfer
    11 Mar
  6. Listing
    13 Mar

JG Chemicals Limited IPO Details

Price range₹210 – ₹221
IPO type
Regular
Lot size67 shares
Issue size₹251.19Cr
RHP/DRHP
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About  JG Chemicals Limited

Incorporated in 2001, J.G.Chemicals Limited is India’s largest zinc oxide manufacturer, with a market share of around 30% as of March 2022. It is among the top ten manufacturers of zinc oxides globally.  It sells over 80 grades of zinc oxide, while its products are used in tyre & other rubber products, ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilisers, speciality chemicals, lubricants, oil & gas and animal feed.
The tyre industry is the largest consumer of J.G.Chemicals product in India wherein it supplies to all of the top 11 tyre manufacturers. It also supplies to 9 out of the top 10 global tyre manufacturers. Over the last three years, it sold its product to 200+ domestic and 50+ global customers in more than 10 countries.  It sources its raw material – virgin zinc metal and Zinc Dross, from old and established trading houses that work based on long term relationships and refrain from doing business with new entrants. It has procured raw materials from over 100 global suppliers in the last three years.
Its three manufacturing facilities are located at Kolkata in West Bengal and Nellore in Andhra Pradesh.  All these facilities are owned and operated by its material subsidy - BDJ Oxides, which is the only zinc oxide manufacturing facility in India to have an IATF certification. Between FY21 and FY23, it saw a CAGR rise of 21% in its revenue from operations and 25% in its profit. Moreover, the zinc oxide market in India is expected to grow at a CAGR of 10%-12% between FY22 and FY27, which could benefit the company. And now, J.G.Chemicals Limited is coming out with its initial public offer (IPO). The IPO will be an offer for sale as well as a fresh issue. The money raised through the fresh issue will be utilised to invest in its material subsidiary, BDJ Oxides, to fund its long term working capital requirements, and for general corporate purposes. Its shares will be listed on the NSE and the BSE.
Here are key details about the JG Chemicals Limited IPO:
Company NameJG Chemicals Limited Company TypePrivate
Company Established On2001

Financial snapshot

ParticularsFY21FY22FY23Q2FY24
Revenue₹ 435 crore₹ 612 crore₹ 784 crore₹ 486 crore
Net Profit₹ 28.7 crore₹ 43.1 crore₹ 56.7 crore₹ 18.5 crore

Here’s a quick look at JG Chemicals Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

  1. Leading market position in the Indian zinc oxide market, which is a fragmented with limited presence of organised players. 
  2. Operates in an industry with high entry barriers due to stringent vendor approval processes, raw material tie-ups, technical expertise, and high working capital requirements. 
  3. Consistent financial performance with EBITDA margins of 11%, 10%, 10% and 6% as of FY21, FY22, FY23, and Q3 FY24. 
  4. Long term relationship with customers and suppliers. In the last three fiscal years, the company catered to more than 250 customers, of which 90% were repeat customers. 
  5. One of the few players in the industry to have certifications related to the pharma industry.

Risks and threats

  1. Significantly dependent on revenue from select customers as its top 10 customers accounted for 77% of its total revenue from operations as of Q3 FY24. 
  2. Significantly dependent on the rubber industry with a lack of diversification across other applications as it accounted for 90% of its total revenue from operations as of Q3 FY24.
  3. Subject to compliance with safety, health, environmental, labour, and other laws, and changes in them could adversely affect business. 
  4. Raw material  procurement from overseas countries may lead to forex risks and affect its finances. 
  5. Has incurred an indebtedness of ₹40 crore as of 31 January 2024, which exposes it to conditions and restrictions in the event of its inability to meet obligations. 
  6. Company may experience a decrease in revenue due to lower capacity utilisation which stood at 61%, 63%, 57%, and 52% as of FY21, FY22, FY23, and Q3 FY24, respectively.

JG Chemicals Limited IPO details

**** JG Chemicals Limited IPO date

According to the offer document filed by the company with the SEBI, the J.G.Chemicals IPO’s opening date – in other words, the J.G.Chemicals IPO launch date – will be 5th March 2024. The J.G.Chemicals IPO closing date is 7th March 2024. After this, investors will be updated about the allotment status on 11th March 2024.
Investors, who have been allotted shares, can expect them to be credited to their demat account on 12th March 2024. The J.G.Chemicals IPO listing date is 13th March 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE.

**** JG Chemicals Limited IPO Price Band

The IPO is an offer for sale as well as a fresh issue. The J.G.Chemicals IPO price band has been set between ₹210 and ₹221 per share. Interested investors can choose a price within this band to apply for the IPO.
The J.G.Chemicals IPO listing price will be determined on 13th March 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.
**** JG Chemicals Limited IPO Lot size
The J.G.Chemicals IPO details have been declared. The J.G.Chemicals IPO lot size is set at 67 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the J.G.Chemicals IPO issue size is approx ₹251 crore.

How to pre-apply for the JG Chemicals Limited IPO?

You can pre-apply for the JG Chemicals Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.
Follow these steps to pre-apply for the IPO:
  1. Login to your Upstox account, using your six-digit PIN
  2. After successfully logging in, click on ‘Discover’
  3. On the Discover tab, you will find the ‘Invest in IPO’ section
  4. Under the Invest in IPO section, look for the ‘JG Chemicals Limited IPO’ tab and click on it
  5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
  6. Confirm and click on ‘Pre-Apply’
  7. Accept the mandate on your UPI app

How to apply for the JG Chemicals Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the JG Chemicals Limited IPO, here we are listing out the steps for you.
When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the JG Chemicals Limited IPO on Upstox:
  1. Login to your Upstox account, using your six-digit PIN
  2. After successfully logging in, click on ‘Discover’
  3. On the Discover tab, you will find the ‘Invest in IPO’ section
  4. Under the Invest in IPO section, look for the ‘JG Chemicals Limited IPO’ tab and click on it
  5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
  6. Confirm and click on ‘Apply’
  7. Accept the mandate on your UPI app

How to check the JG Chemicals Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.
Here’s a step-by-step guide on how to check the JG Chemicals Limited IPO allotment status:
  1. Login to your Upstox account, using your six-digit PIN
  2. After successfully logging in, click on ‘Discover’
  3. On the Discover page, you will find the ‘Invest in IPO’ section
  4. Under the Invest in IPO section, you will find the ‘View all’ option
  5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
  6. In the ‘IPO’ tab, click on ‘My applications’ 
  7. In ‘My applications’, under the History section, your JG Chemicals Limited IPO allotment status will be mentioned
Check Allotment Status

Open a demat account with Upstox to apply for the JG Chemicals Limited IPO

To apply for the JG Chemicals Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.
Here is a step-by-step guide on how to open a demat account with Upstox:
  1. Click here to visit the demat account opening page on the Upstox website. 
  2. Enter your phone number and other essential details to begin opening a demat account.
  3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
  4. Complete the e-verification using the OTP sent to your registered mobile number.
This is all it takes to open a demat account with Upstox. Easy and quick, right?
Open Demat Account

Upstox – trading app to apply for the JG Chemicals Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.
You can apply for the JG Chemicals Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.
In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.

Frequently asked questions

How to invest in the JG Chemicals Limited ?

Investors can apply for the JG Chemicals Limited through their Demat account via the stock exchange or through their broker.

What is the issue size of JG Chemicals Limited ?

The issue size of the JG Chemicals Limited is 251.19 Cr.

What is 'pre-apply' for JG Chemicals Limited ?

Pre-applying for an IPO allows you to submit your application before the official subscription period begins.

Which exchanges will JG Chemicals Limited shares list on?

The IPO shares will typically list on major stock exchanges such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), as specified in the IPO prospectus.