J G Chemicals was incorporated on March 15, 1975. The company is India's largest zinc oxide manufacturer in terms of production and revenue, specializing in zinc oxide manufacturing through the French process. This method is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in the Americas, Europe, and Asia.
| Bidding Dates |
|---|
| 05 Mar 2024 - 07 Mar 2024 |
| Subscription |
|---|
| 27.78x Oversubscribed |
| Minimum Investment | Minimum Lot | Maximum Lot | Lot Size | Number of Shares | Issue Price Band | Post Issue Promoter Holding % | Issue Size | IPO Document |
|---|---|---|---|---|---|---|---|---|
| ₹14,070 | 1 | 13 | 67 | 11.4 M | ₹210 - ₹221 | 80.95 % | ₹2386.9 M - ₹2511.9 M | RHP DOC |
J G Chemicals IPO SUBSCRIPTION STATUS
07 Mar '24J G Chemicals IPO overall subscription rate was 27.78 times the total available shares
J G Chemicals IPO retail subscription rate was 17.44 times in the retail segment
J G Chemicals IPO non-institutional investor subscription rate was 46.32 times in the non-institutional investor category
J G Chemicals IPO Qualified Institutional Bidder subscription rate was 32.09 times the available shares for Qualified Institutional Bidder
| Day | Retail Individual Investor | HNI (NII) Investors | Qualified Institutional Buyers |
|---|---|---|---|
| Category Reservation | 35% | 15% | 50% |
07 Mar 2024 (Day 3) | 17.44x | 46.32x | 32.09x |
06 Mar 2024 (Day 2) | 8.32x | 9.64x | 0.45x |
05 Mar 2024 (Day 1) | 3.64x | 2.9x | 0.02x |
J G Chemicals FINANCIALS
| Period | Net Profit (Rs in millions) | Revenue from Operations (Rs in millions) | Cash Flow from Operations (Rs in millions) | Free Cash Flow (Rs in millions) | Margins |
| 9MFY24 | 185.1 | 4,863.2 | 671.1 | 590.0 | 6.8% |
| FY23 | 567.9 | 7,845.8 | 311.7 | 213.0 | 10.9% |
| FY22 | 431.3 | 6,128.3 | 67.5 | -19.4 | 10.8% |
| FY21 | 288.0 | 4,353.0 | -73.5 | -126.9 | 11.2% |
J G Chemicals IPO SUBSCRIPTION STATUS DETAILS
J G Chemicals had 11.4 M shares on offer
J G Chemicals IPO offer price was in the range ₹210 - ₹221
J G Chemicals IPO minimum Investment was ₹14070
J G Chemicals IPO issue size was ₹ 2386.9 M - ₹ 2511.9 M
J G Chemicals had a minimum lot size of 67 Shares per application
J G Chemicals NUMBER OF SHARES ON OFFER
J G Chemicals IPO IMPORTANT DATES
| Issue Open Date | 05 Mar 2024 |
| Issue close Date | 07 Mar 2024 |
| Allotment Date | 11 Mar 2024 |
| Refund Date | 12 Mar 2024 |
| Demat Account Credit Date | 12 Mar 2024 |
| Listing Date | 13 Mar 2024 |
| Listing on Exchange(s) | NSE and BSE |
| J G Chemicals Allotment Status | Exchange |
J G Chemicals IPO subscription opened on 05 Mar 2024, and closed on 07 Mar 2024
IPO allotment for J G Chemicals was finalized on Monday, 11 Mar 2024
IPO listing for J G Chemicals was on NSE and BSE on Wednesday, 13 Mar 2024
J G Chemicals IPO LISTING GAINS
| Issue Price (adjusted) | 221.0 |
| Listing Open Price | 209.0 |
| Listing Close Price | 184.8 |
| Listing Gain% | -5.4% |
| Current Gain% | 174.3% |
J G Chemicals Peer
| Stock | Stock Price | Market Cap (Rs crore) | PE TTM | PEG TTM | PS TTM | ROE% | ROA% | Annual Revenue (Rs crore) | Annual Revenue Growth % | Annual Net Profit (Rs crore) | Annual Net Profit Growth % | EPS TTM | EPS TTM Growth % |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| J G Chemicals Ltd. | 606.2 | 2375.3 | 31.6 | 1.9 | 2.2 | 12.5 | 11.6 | 988.8 | 15.2 | 65.9 | 2.9 | 19.2 | 16.4 |
| Pidilite Industries Ltd. | 1693 | 172311.9 | 65 | 3 | 11.2 | 22.6 | 15.9 | 14867 | 11.1 | 2448.9 | 17.9 | 26 | 21.4 |
| SRF Ltd. | 2606 | 77248.3 | 35.7 | 0.7 | 4.5 | 13.1 | 7.6 | 15893.6 | 7.2 | 1835.2 | 46.7 | 72.9 | 51.1 |
| Gujarat Fluorochemicals Ltd. | 4737.8 | 52044.7 | 84.6 | -75.2 | 9.8 | 7.3 | 4.9 | 5038 | 3.8 | 578 | 5.8 | 56 | -1.1 |
| Himadri Speciality Chemical Ltd. | 781 | 39409.8 | 49.3 | 1.6 | 7.9 | 16 | 11.9 | 4832 | 3.6 | 751.3 | 35.2 | 15.8 | 30 |
| Aether Industries Ltd. | 1625.1 | 21569.6 | 91.7 | 2.7 | 17.6 | 8.9 | 6.8 | 1181.1 | 34.2 | 219.5 | 38.5 | 17.7 | 34 |
J G Chemicals INFORMATION ON IPO ISSUE
About J G Chemicals
J G Chemicals was incorporated on March 15, 1975. The company is India's largest zinc oxide manufacturer in terms of production and revenue, specializing in zinc oxide manufacturing through the French process. This method is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in the Americas, Europe, and Asia.
Object of the Issue
- Investment in the material subsidiary, viz. BDJ Oxides:
- Repayment or pre-payment, in full or in part, of all or certain borrowings availed by the material subsidiary.
- Funding capital expenditure requirements for setting up a research and development centre in Naidupeta.
- Funding its long-term working capital requirements.
- Funding long-term working capital requirements of the company.
- General corporate purposes.
J G Chemicals - PROMOTERS
| Name |
|---|
| Suresh Jhunjhunwala |
| Anirudh Jhunjhunwala |
| Anuj Jhunjhunwala |
J G Chemicals Book Running Lead Manager
Centrum Capital Limited
jgcl.ipo@centrum.co.in
Emkay Global Financial Services Limited
jgcl.ipo@emkayglobal.com
Keynote Financial Services Limited
mbd@keynoteindia.net
J G Chemicals Registrar to the Offer
KFinTechnologies Private Limited
jgchemicals.ipo@kfintech.com
J G Chemicals Strengths
Leading market position
The company is the largest manufacturer of zinc oxides in India and ranks among the top ten manufacturers globally. It has an installed capacity of 59,904 MTPA for zinc oxide, 7,056 MTPA for zinc ingots, and 10,080 MTPA capacity for zinc sulphate and other allied chemicals
High entry barriers
The end-use industries present significant entry barriers due to specific factors unique to these sectors. Given the nature of product applications and the processes involved, the products are subject to high quality standards and rigorous product approval systems
Strong and consistent financial performance
The company has experienced sustained growth across various financial indicators and has seen consistent improvement in its balance sheet position
J G Chemicals Risks
Dependent on select customers
The company derives a significant portion of its revenue from select customers. If one or more of these customers decide not to source their requirements from the company, its business, financial condition, and results of operations may be adversely affected
Pending litigations
There are pending litigations against the company, its subsidiaries, and certain of its directors. Any adverse decision in these proceedings may render them liable to liabilities/penalties and could adversely affect the business
IPO FAQs
This IPO consists of an offer for sale of up to Rs 86.2 crore, of 3,900,000 shares. It also consists of a fresh issue of Rs 165.0 crore.
The promoters of the company are Suresh Jhunjhunwala, Anirudh Jhunjhunwala and Anuj Jhunjhunwala.
The category allocation of qualified institutional buyers is 50.0%, the category allocation of non individual investors or high networth individuals is 15.0% and for retail investors it is 35.0%.
The price band of the IPO is Rs 210.0 - 221.0.
The IPO application opens on Mar 05, 2024 and closes on Mar 07, 2024.
The minimum lot size for the IPO is 67. The maximum lot size for the IPO is 871.
For all category investors, the minimum application amount for this IPO is Rs. 14,070.0, the maximum value for this IPO is Rs 192,491.0.
This IPO will be allotted on Mar 11, 2024.
The refund will be credited to your account on Mar 12, 2024.
The allotted shares will be credited to your demat on Mar 12, 2024.
J G Chemicals Ltd.’s shares listed on the stock exchanges on Mar 13, 2024.