JG Chemicals IPO subscribed over 27 times on final day; NII portion booked over 40x

The initial public offer of Kolkata-based JG Chemicals Ltd was subscribed over 27.7 times on Thursday, the third and final day of subscription.

The initial public offer of the India’s largest zinc oxide manufacturer received bids for 21.41 crore shares as against 81.68 lakh equity shares on offer, according to NSE data.

The public issue has received an upbeat response from investors across categories. The company has received bids for 6.66 crore shares from qualified institutional buyers (QIBs) compared to 22.9 shares allocated to them. The investor category has been subscribed to over 29 times.

The non-institutional investors’ (NII) allocation of 17.63 lakh shares has been subscribed over 46.3 times. The company has received bids for 8 crore shares under this category.

The retail portion of the IPO has been subscribed to over 17 times as per the latest update on day 3. The company has received bids for over 6.7 crore shares against 41.15 lakh shares on offer.

The bidding process for the JG Chemicals public issue is still underway and the subscription number could go up after the end of the process.

The finalisation of the basis of allotment of shares in JG Chemical IPO is tentatively scheduled to be done on Monday, March 11. The initiation of refunds for non-allottees along with the credit of shares into the Demat account of successful bidders will be done on March 12.

JG Chemicals shares are expected to be listed on both BSE and the National Stock Exchange on March 13.

JG Chemicals intends to raise ₹ 251.2 crore through the public issue. This includes a combination of fresh issue of shares and offer for sale.

Ahead of the IPO subscription, the Kolkata-based firm raised ₹ 75 crore through the anchor investor round. JG Chemicals allocated over 34 lakh shares to SBI General Insurance Company, Massachusetts Institute of Technology, Carnelian Structural Shift Fund, and Pineridge GLobal Funds- Pinebridge India Equity Fund.

JG Chemicals IPO Details

JG Chemicals IPO is a 100% book-built issue consisting of a fresh issue of 74 lakh shares aggregating to ₹165 crore and an offer for sale (OFS) of 39 lakh shares totalling ₹86.19 crore.

Through the OFS component, promoter group shareholders Vision Projects and Finvest Pvt. Ltd, Suresh Kumar Jhunjhunwala (HUF), Anirudh Jhunjhunwala and Jayanti Commercial Ltd will offload equity shares.

JG Chemical has fixed the price band for the public in the range of ₹210-221 per share.

The company has reserved 50% of the net issue for QIBs, 35% for retail investors and 15% for non-institutional investors.

Retail investors could have submitted their bids with a minimum lot size of 67 shares aggregating to ₹14,807 and multiples thereof. The maximum investment amount for retail investors is capped at ₹2 lakh.

The company has appointed Centrum Capital Ltd, Emkay Global Financial Services Ltd and Keynote Financial Services Ltd as the book-running lead manager for the public issue. Kfin Technologies Ltd is the registrar for the issue.

JG Chemicals is the largest zinc oxide manufacturer in India and produces more than 80 grades of zinc oxide. The products have several industrial applications including ceramics, paints and coatings, agrochemicals, fertilisers, speciality chemicals, pharma and cosmetics, electronics and batteries, lubricants, oil and gas and animal feed.

The company operates three manufacturing facilities across India.