According to production and sales, JG Chemicals is the largest producer of zinc oxide in India using the French process, which is the industry standard production method for producing zinc oxide and is used by all the major producers in the Americas, Europe, and Asia. (Source: CARE Report). JG Chemicals IPO will hit the stock market in April 2023.
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About JG Chemicals
As of March 2022, their company had a 30% market share. They are among the top ten manufacturers of zinc oxides worldwide & sell over 80 different grades of the metal.
Since their incorporation, they have increased the scope of their operations and the size of their business, developing into a significant global player in the zinc oxide industry.
In addition to rubber (tyres and other rubber products), ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics & batteries, agro-chemicals and fertilisers, specialty chemicals, lubricants, oil and gas, and animal feed, their product is used in a wide range of industrial applications.
They are able to serve a diverse range of customers thanks to their history of over 40 years in manufacturing businesses.
Clients
JG Chemicals advertised and sold their product to more than 200 domestic customers and more than 50 international customers in more than 10 countries over the course of the last three years. The tyre industry in India is the largest consumer of rubber, accounting for 70% of the country’s total rubber consumption.
In addition to supplying all 11 of India’s top tyre manufacturers and nine out of the top ten global tyre manufacturers, they also provide leading paint manufacturers, footwear companies, and cosmetics companies in India (Source: CARE Report).
The only zinc oxide manufacturing facility in India with an IATF certification is their Material Subsidiary, BDJ Oxides, which is preferred by tyre suppliers to original equipment manufacturers (Source: CARE Report).
Production
As a major zinc oxide manufacturer, it is a requirement in most of their end-use industries for their goods to be customised according to customer demands, which normally functions as a considerable entrance barrier.
Other entry barriers in their business include the high cost of product development, the complexity of the chemistry involved in innovating and customising their products to the customised requirements of their clients which requires necessary specialist knowledge, and a lengthy and stringent supplier qualification process.
JG Chemicals’s aggregate installed capacity of 77,040 MTPA as of October 31, 2022 is spread among their three manufacturing sites located in Jangalpur, Belur, and Naidupeta, which is their biggest production plant and is owned and operated by their Material Subsidiary.
JG Chemicals IPO
JG Chemicals Limited, headquartered in kolkata has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 202.50 Crore and 5,700,000 equity shares on 29 December 2022.
The offer includes a fresh issue of INR 202.50 Crore and there is offer for sale (OFS) of 5,700,000 equity share by the promoters mentioned in the DRHP. They are looking for any Pre-IPO placement of 40 crore in this issue.
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- Initial Public Offering
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-Sep-22 | 31-Mar-22 | 31-Mar-21 | 31-Mar-20 | ||
| Total Assets | 266.28 | 264.14 | 209.94 | 149.42 | |
| Total Revenue | 432.20 | 623.05 | 440.41 | 407.27 | |
| Profit After Tax | 35.71 | 43.13 | 28.79 | 13.95 | |
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2020 | 4.08 | 4.08 | 3 |
| Financial Year 2021 | 7.39 | 7.39 | 2 |
| Financial Year 2022 | 12.61 | 12.61 | 1 |
| Weighted Average | 9.45 | 9.45 | |
| 30 June 2022 | 10.93 | 10.93 |
Objects of the Issue
- Repayment/prepayment of debt.
- General corporate objectives and organic growth.
Basis of the offer
JG Chemicals limited feel that the following business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:
- Leading position in the market with a diverse clientele.
- High obstacles to entry in important end-use sectors.
- Strong and reliable financial results.
- Enduring connections with clients and suppliers, as well as a reliable supply chain.
- A management team with dedication and experience.
- Put your attention on long-term sustainability through environmental and safety efforts.
JG Chemicals Peer Comparison
There are no comparable listed companies operating a similar business to their Company in India or anywhere else in the world. As a result, it is impossible to provide a P/E ratio for their company compared to that of its industry peers.
JG Chemicals IPO Details
| IPO Opening Date | April 2023 |
| IPO Closing Date | April 2023 |
| Issue Type | Book Building |
| Face Value | 10 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Amount | – |
| Listing At | BSE, NSE |
| Issue Size | 202.50 Crores & 5,700,000 Equity Shares |
| Fresh Issue | 202.50 Crore |
| Offer for Sale | 5,700,000 Equity Shares |
JG Chemicals IPO Date
JG Chemicals Limited IPO opening date is April 2023, and the closing date is April 2023. The JG Chemicals issue may list in April 2023.
| IPO Opening Date | April 2023 |
| IPO Closing Date | April 2023 |
| Basis of Allotment Date | April 2023 |
| Initiation of Refunds | April 2023 |
| Credit of Shares to Demat Account | April 2023 |
| IPO Listing Date | April 2023 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 35 | Minimum 1 lot based on availability |
JG Chemicals IPO 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 JG Chemicals IPO.
JG Chemicals IPO GMP
JG Chemicals Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
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Check Out the GMP of all Other IPOs
JG Chemicals Limited IPO Review
JG Chemicals Limited 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 JG Chemicals IPO is good or bad.
JG Chemicals IPO Risk
- They receive a substantial portion of their income from particular clients. They risk having a negative impact on their business, financial situation, and operational performance if one or more of these customers decide not to purchase from them.
- Their business activities are extremely reliant on the rubber and tyre sector, among other Application Industries for their products.
- They rely on purchase orders to deliver their items because they do not have long-term contracts with their clients. A decrease in demand for their products or the loss of one or more clients could have a negative impact on their firm.
- Any spontaneous, unanticipated, or protracted disruption of their machinery could have a negative impact on their operations, financial results, and future opportunities for expansion.
Other Threats
- Due to decreasing manufacturing levels, JG Chemicals can incur a loss of revenue or a decline in revenue. They are reliant on outside logistics and transportation service suppliers. Any rise in these entities’ fees can have a negative impact on their operations.
- As a result of their operations including the production, use, and storage of numerous hazardous substances, they are exposed to specific dangers.
- They run the risk of having negative effects on their business, cash flows, operating results, and financial situation if any new items they manufacture are not as successful as they want.
- Future developments, which are unsure and impossible to anticipate, will determine how much the COVID – 19 epidemic might affect their operations, results, and financial situation.
JG Chemicals IPO Brokerage views
Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this JG Chemicals IPO:
- 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
JG Chemicals Limited IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| April 2023 | 1 | |||||
| April 2023 | 2 | |||||
| April 2023 | 3 |
JG Chemicals Limited Management
They are headed by certified & experienced Promoters who they think possess the expertise and vision required to manage and expand their organisation. Suresh Jhunjhunwala, Anirudh Jhunjhunwala, & Anuj Jhunjhunwala have over 8 decades of industry expertise and have been essential in the growth of their company.
Suresh Jhunjhunwala, one of their Promoters, has been at the helm of their Company since 2001, prior to which he was involved in numerous manufacturing firms, which has resulted in him developing excellent relationships with their clients.
Anirudh & Anuj Jhunjhunwala are second generation entrepreneurs who contribute expertise in finance & process chemistry to their company. They take a personal interest in client development efforts in addition to the commercial acumen that they offer to their firm.
Raw Materials
They get their raw materials from a variety of domestic & international providers. The principal raw materials they use are virgin zinc metal and zinc dross.
They obtain virgin zinc metal and zinc dross from a variety of domestic and international sources. Zinc dross is typically created as a byproduct of steel manufacture by steel galvanizers.
The availability of zinc scrap is a challenge, and the most significant constraint for new market entrants is the need to establish a global supply network.
The majority of Zinc Dross imported into Western countries is through old and established trading companies that operate on long-term partnerships and avoid doing business with new entrants due to the numerous obstacles associated with dealing in Zinc Dross.
JG Chemicals Limited‘ Promoters
- Suresh Jhunjhunwala
- Anirudh Jhunjhunwala
- Anuj Jhunjhunwala
Principal Shareholders’s Holding
| Pre Issue Share Holding | 37.71% |
| Post Issue Share Holding |
JG Chemicals Limited Prospectus
Contact Details
JG Chemicals Limited
34A, Metcalfe Street, Kolkata – 700 013,
West Bengal, India
Email: [email protected]
Telephone: +91 33 4014 0100
Website: www.jgchem.com
Registrar
KFin Technologies Limited
Selenium, Tower B, Plot No. – 31 and 32 Financial District
Nanakramguda, Serilingampally
Hyderabad, Rangareddy 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Lead Manager(s)
- Centrum Capital Limited
- Emkay Global Financial Services Limited
- Keynote Financial Services Limited
We hope we are able to answer all your questions about JG Chemicals IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
Profit must do not engage in grey market trading or facilitate the purchase or sale of IPO forms. We don’t endorse such activities at all. We are sticky against such activities & never advise anyone to trade in grey market at all.
FAQ
JG Chemicals Limited IPO Opening Date?
JG Chemicals Limited IPO will open in April 2023.
JG Chemicals Limited IPO Listing Date?
JG Chemicals Limited IPO will list in April 2023.
JG Chemicals IPO GMP Today?
JG Chemicals IPO Grey Market Premium is INR 0 .
JG Chemicals Limited IPO Allotment Date?
JG Chemicals Limited IPO basis of allotment will be in April 2023.
Lot size for JG Chemicals Limited IPO?
Lot size for JG Chemicals Limited IPO is 0.
