JG Chemicals Limited is launching its IPO. The IPO opens for subscription on 5th March and will close on 7th March 2024.
What does JG Chemicals Limited do?
Founded in 1975, JG Chemicals Limited is engaged in the manufacturing of zinc oxide and is India’s largest zinc oxide manufacturer in terms of production and revenue for zinc oxide manufacturing through the French process, which is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in Americas, Europe, and Asia (Source: CARE Report).
Its products cater to a wide spectrum of industrial applications including rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, specialty chemicals, lubricants, oil & gas, and animal feed. The company sells over 80 grades of zinc oxide and is among the top ten manufacturers of zinc oxides globally (Source: CARE Report). As of December 31, 2023, the company’s aggregate installed capacity of 77,040 MTPA is spread across three manufacturing facilities.
What is the issue size of the JG Chemicals Limited IPO?
The 251.19 crore public offer of the company is a combination of a Fresh equity issue worth 165 crore and an offer for sale (OFS) worth Rs. 86.19 crore from the existing shareholders.
Financials of JG Chemicals Limited IPO (₹ crores)
| Financial Year | Total Assets | Total Revenue | Profit After Tax | EBITDA | EPS |
|---|---|---|---|---|---|
| March 31, 2021 | 209.94 | 440.41 | 28.80 | 48.60 | 7.39 |
| March 31, 2022 | 264.14 | 623.05 | 43.13 | 66.38 | 12.61 |
| March 31, 2023 | 297.79 | 794.19 | 56.79 | 85.12 | 17.32 |
Risk factors to consider:
Dependence on a single key product: The Company’s business is almost completely dependent on the sale of one principal product i.e. zinc oxide (in various grades) and any reduction in the demand for the same may hurt the business and financial performance.
Revenue concentration from top clients: The company derives nearly 78% of its revenue from its top 10 customers. If one or more of such customers choose not to source their requirements, the company’s business, financial condition, and results of operations may be adversely affected.
Schedule/Timeline of J G Chemicals Limited IPO
| Issue Period | 5th March to 7th March 2024 |
|---|---|
| Price band | ₹ 210 to 221 |
| Minimum Bid quantity | 67 & Multiples thereof |
| Deadline for accepting UPI mandate | Until 5 PM on the issue closing day |
| Finalization of Allotment | March 11, 2024 |
| Initiation of Refunds | March 12, 2024 |
| Credit of Shares | March 12, 2024 |
| Date of Listing | March 13, 2024 |
| Mandate end date | March 22, 2024 |
| Anchor Investors Lock-In End Date (50% of the investment) | April 10, 2024 |
Anchor Investors Lock-In End Date (Remaining investment) June 09, 2024
Note: Given that the above schedule is tentative, it should be noted that the anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares, and 90 days after for the remaining portion.
How to apply to the J G Chemicals Limited IPO?
You can apply for the J G Chemicals Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone
On acceptance of the mandate, the bid amount will get blocked in your bank account. Click here to learn more.
How to check the allotment status for the J G Chemicals Limited IPO?
You can check the allotment status for the J G Chemicals Limited IPO on the website of the Registrar and Transfer agent.