JG Chemicals listing: Shares list at discount of 5.43% to IPO price on NSE
Upstox
2 min read • Updated: March 13, 2024, 10:22 AM
Summary
JG Chemicals IPO, which listed at a discount of 5.43%, comprised a fresh issue of equity shares worth ₹165 crore and an offer for sale of shares worth ₹86.19 crore.
The shares of JG Chemicals Limited listed at a discount of 5.43% to open at ₹209 on the National Stock Exchange (NSE) against the issue price of ₹221 on Wednesday, March 13. The zinc oxide manufacturer debuted at ₹211 on the BSE, a discount of 4.52%.
The initial public offering (IPO) was subscribed 27.78 times. The retail investors bought 17.44 times the quota allotted and non-institutional buyers 46.33 times the reserved quota, while qualified institutional investors bidded 32.09 times.
The company had set a price band of ₹210-₹221 per equity share. The ₹251-crore public issue comprised a fresh issue of equity shares worth ₹165 crore and an offer for sale of shares worth ₹86.19 crore. It also raised ₹75.35 crore from anchor investors. For live updates related to JG Chemicals, click here.
The company intends to use funds generated to cover working capital requirements, for general corporate purposes and invest in its material subsidiary (BDJ Oxides).
About JG Chemicals
Established in 2001, JG Chemicals is the largest zinc oxide manufacturer in India. It is among the top 10 manufacturers of zinc oxides worldwide.
With a portfolio of more than 80 grades of zinc oxide, the company's products are used in tyre and other rubber products, ceramics, paints and coatings, cosmetics and pharmaceuticals, fertilisers and agro-chemicals, oil and gas, batteries and electronics, lubricants, speciality chemicals and animal feed.
The company's three manufacturing plants are located in Nellore, Andhra Pradesh, and Kolkata, West Bengal. These facilities are owned and operated by its material subsidy- BDJ Oxides.
JG Chemicals supplies to 9 out of the top 10 global tyre manufacturers and all 11 of India's top tyre manufacturers.
Between FY21 and FY23, the company witnessed a growth of 21% in its revenue from operations and a 25% rise in its profit on a CAGR (compound annual growth rate) basis. The zinc oxide market in India is also projected to grow at a CAGR of 10% to 12% between FY22 and FY27, which could benefit the company.
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