Jesons Industries IPO

Jesons Industries is among India’s largest makers of specialty coated emulsions (“SCE”) and water-based pressure sensitive adhesives (“PSA”) in the tape and label industries in terms of sales value (source: F&S Report). Jesons Industries IPO will hit the stock market in March 2021.

About Jesons Industries

Based on their overall market, they are expected to be the biggest players in this sector in Fiscal 2021, with a market share of 12%.

Furthermore, with an EMS market share of about 7% in Fiscal 2021, they are among the leading companies in LED lighting and flashlights, as well as one of the leading players in the small appliances vertical, with an EMS market share of 10.7% in Fiscal 2021.

They produce and assemble a wide range of items and offer complete product solutions. Original equipment manufacturer (OEM) and original design manufacturer (ODM) business types are both adopted by them.

Industries

Paints, packaging, and chemicals for construction, textiles, leather, carpet, and paper are just a few of the industries that employ their goods. In terms of sales value, they are among the leading SCE suppliers to the Indian paint business, with roughly 30% market share in Fiscal 2021.

As of June 30, 2021, their company has been an exporter of SCEs and PSAs since 2008, with a global footprint of shipments to more than 50 nations.

For 2019, 2020, 2021, and the three months ended June 30, 2021, export products contributed $1,889.48, $2,260.11, $2,921.14 and $1,605.51 million to its revenue from operations, representing 20.59 percent, 25.07 percent, 26.91 percent, and 36.62 percent, respectively.

Footprints

For both SCE and PSA products, they have effectively built a strong footing in high-growth regions across Asia-Pacific, the Middle East, and Africa (source: F&S Report).

In Fiscal 2021, they will be the biggest exporter of Polymers of Vinyl Acetate (HS code 3905) and Acrylic Polymers (HS code 3506) from India, which are utilised in SCEs and PSAs.

During Fiscal 2021, they exported 6,687 tonnes of Polymers of Vinyl Acetate, accounting for 52.9 percent of India’s total export of the same.

Consequently, they shipped 38,888 tonnes of Acrylic Polymers (HS code 3506) in Fiscal 2021, accounting for 36.1 percent of India’s total exports (source: F&S Report).

Jesons Industries IPO

Jesons Industries Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 120 crores & 12,157,000 Equity shares on 19 November 2021.

The offer includes fresh issue of 120 crores and there is offer for sale (OFS) of 12,157,000 equity shares by the promoters mentioned in the DRHP. They are looking for pre-IPO placement of 24 crores in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Jun-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	703.28	701.85	369.01	325.97
Total Revenue	443.81	1,096.55	908.74	923.73
Profit After Tax	54.27	92.88	29.65	24.75

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	17.55	17.55	3
Financial Year 2020	5.51	5.51	2
Financial Year 2019	4.62	4.62	1
Weighted Average	11.38	11.38
30 Jun. 2021	10.13	10.13

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

The following are among the qualitative elements that go into determining the Offer Price:

1. Diversified product portfolio and tailored client solutions for some major and rapidly growing markets.
2. With a diverse geographical footprint encompassing important regions, one of the top players in SCEs and PSAs.
3. Production facilities at strategic locations with fungible capabilities, effective supply chain management, and export capabilities.
4. Customer base is diverse, with long-term partnerships with prominent customers both domestically and internationally.
5. Offering products that are driven by innovation and R&D.
6. Promoter and board of directors are both professional and experienced.

Jesons Industries IPO Peer Comparison

S. No.	Face Value	Company Name	PE
1	2	Apcotex Industries Limited	46.87
2	5	Fine Organic Industries Limited	84.03
3	10	Galaxy Surfacants Limited	34.88
4	5	Aarti Surfacants Limited	31.57
5	1	Vinati Organics Limited	77.05

Note:

1. The closing price of these equity shares on November 12, 2021 from the BSE portal.
2. All financial data for listed industry peers is consolidated (unless otherwise stated) and derived from the respective firm’s annual results/reports for the fiscal year ended March 31, 2021.

Jesons Industries IPO Details

IPO Opening Date	March 2021
IPO Closing Date	March 2021
Issue Type	Book Building
Face Value	5 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	–
Fresh Issue	120 Crores
Offer for Sale	12,157,000 equity share

Jesons Industries IPO Date

Jesons Industries IPO opening date is March 2021, and the closing date is March 2021. The Jesons Industries issue may list in March 2021.

IPO Opening Date	March 2021
IPO Closing Date	March 2021
Basis of Allotment Date	March 2021
Initiation of Refunds	March 2021
Credit of Shares to Demat Account	March 2021
IPO Listing Date	March 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum level of 1 lot, based on availability, for every shareholder.

Jesons Industries IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Jeson Industries IPO.

Jesons Industries IPO GMP

Jesons Industries IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
March 2021
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Jesons Industries IPO Review

Jesons Industries IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Jesons Industries IPO is good or bad.

Jesons Industries IPO Risk

• The impact of the coronavirus sickness on their business is unknown and impossible to anticipate.
• The market for their products and their business is strongly dependant on demand from end-user industries.
• Exports of their products to Asia-Pacific, the Middle East, and Africa account for a considerable amount of our income.
• They are exposed to foreign exchange risk, which could have a negative impact on their operating results.
• Certain quality accreditations are required for the success of their business and operations, and they are only valid for a short time.
• They only work with a few vendors for their basic materials.

Other Threats

• Their customers hold them to strict quality standards, technical specifications, and audits.
• There are ongoing legal procedures involving their Company, Promoter, and Directors, and the outcome of any of these proceedings could have a negative impact on their business.
• Their manufacturing facilities are located on properties that they own both on a leasehold and freehold basis.
• Their inability to respond quickly and effectively to changing client preferences may have a negative impact on their business.
• They’ve gotten ourselves into a lot of debt, and their lenders have put some restrictions on them.

Products

Bondex®, Rdymix®, Coviguard®, Blue Glue®, INDTAPE®, and PolytexTM were among the 170 goods they had in their portfolio. They are a technology-driven company that focuses on providing specialty goods and services that are tailored to their customers’ individual requirements.

Their R&D facility, which contains a team of 27 trained scientists, together with their decades of experience in the SCE and PSA industries, allows them to develop a solid pipeline of specialised products and solutions that are customised based on customer needs and particular orders.

They follow a well-defined approach for expanding our product line, in which they improve existing items while also developing new speciality products.

Revenue from Products

There were 111 speciality goods in their portfolio out of a total of 170, accounting for 65.29 percent of our overall product portfolio.

Their R&D funnel has successfully supplied over 42 speciality items, raising the share of specialty products in their revenue from operations from 16.67 percent in Fiscal 2019 to 23.30 percent for the three months ended June 30, 2021.

They have a track record of successfully launching new items. For example, in the three fiscal years and three months ended June 30, 2021, they released 113 new items, contributing 7.51 percent and 9.77 percent, respectively, to their revenue from operations for Fiscal 2021 and the three months ended June 30, 2021.

Clients

They sell their SCE products to companies like Berger Paints, Indigo Paints, Kamdhenu Paints, JSW Paints, Nippon Paints, and Shalimar Paints in the domestic paint business, as well as Apollo Paints, Kansai Nerolac, Moon Star Paints, and Caparol Paints in the global paint industry.

In addition, they supply PSA products to a number of reputable domestic and international packaging companies, including Cosmos Twisters, Cellotape, Mexim Adhesives, Sarvodaya Industries, Storm Infracon, and SMI Coated Products, as well as Lalan Printing and Packaging, Tuftape, Well Accessories, and Western Paper Industries.

SCE products are also supplied to companies in the building chemicals business, such as Forsoc Chemicals.

Jesons Industries IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Jesons Industries IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
March 2021	1
March 2021	2
March 2021	3

Promoters

• Dhiresh Shashikant Gosalia

Promoters’s Holding

Pre Issue Share Holding	86.53 %
Post Issue Share Holding

Jesons Industries Prospectus