29-Feb-2024
2 mins read
JG Chemicals Limited is coming up with its initial public offering. This significant IPO is open for subscription from Tuesday, March 5, 2024, and will close on Thursday, March 7, 2024. The price band for this IPO is set at Rs 210 to Rs 221 per share. The minimum lot size of this application for the retail category is 67 shares. The minimum lot size for small non-institutional investors is 14 lots consisting of 938 shares. Meanwhile, the minimum lot for big non-institutional investors is 68 lots with 4556 shares. The minimum investment required for retail category investors is Rs 14,807 ( 221 x 67 shares). However, for small non-institutional investors, the minimum investment amount required is Rs 2,07,298 ( 221 x 938 shares); for big non-institutional investors, it is Rs 10,06,876 (221 x 4556 shares).
JG Chemicals Limited IPO is a book-built issue of Rs 252.19 crore. The issue is a combination of a fresh issue and an offer for sale. The fresh issue is of 0.75 crore equity shares amounting to Rs 165 crore and OFS of 0.39 crore shares amounting to Rs 86.19 crores. The allotment for this IPO is expected to be finalized on Thursday, March 7, 2024. JG Chemicals Limited IPO will be listed on both BSE and NSE, and the listing date is fixed on Wednesday, March 13, 2024. The book-running lead managers of JG Chemicals Limited are Centrum Capital Limited, Keynote Financial Services, and Emkay Global Financial Services Limited. The registrar for this IPO is Kfin Technologies Limited.
About JG Chemicals Company Profile
JG Chemicals was founded in 1975 and is engaged in the business of manufacturing zinc oxide using a French process. Their product is used in various industrial applications such as paints, coating, ceramics, pharmaceutical and cosmetics, electronics and batteries, agrochemicals and fertilizers, speciality chemicals, lubricants, oil and gas, animal feed etc. JG Chemicals produces more than 80 grades of zinc oxide. They operate 3 manufacturing facilities in Jangalpur and Belur in Kolkata, West Bengal and Naidupeta in Andhra Pradesh. Naidupeta has the largest facility, owned and operated by the Material subsidiary. As of December 2023, the company employed 112 permanent workers and over 100 workers and apprentices.
Primary Objectives of JG Chemicals IPO
The company is likely to utilize the net funds for the investment in the material subsidiary. Also, The company utilizes the funds to repay or prepay certain borrowings availed by the company. Other than this, JG Chemical IPO’s net proceeds will be used to fund the long-term working capital requirements, and general corporate purposes will also be fulfilled.
Financials of JG Chemicals Limited (Amt in Rs Crores)
The company reported a revenue of Rs 491.1 crores and net profit of Rs 18.51 crores for the period ending on 31 December 2023. The company’s revenue increased by 27.47%, and profit after tax increased by 31.69% between the FY ending with March 31 2023, and March 31, 2022.
| Period Ended | 31-Dec-23 | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 271.26 | 297.79 | 264.14 | 209.94 |
| Revenue | 491.1 | 794.19 | 623.05 | 440.41 |
| Profit After Tax | 18.51 | 56.79 | 43.13 | 28.8 |
| Net Worth | 217.86 | 199.89 | 147.66 | 108.48 |
| Reserves and Surplus | 193.22 | 175.67 | 151.23 | 107.17 |
Other Important Details of JG Chemicals Limited IPO
| IPO Date | March 5, 2024 to March 7, 2024 |
| Listing Date | 13-Mar-24 |
| Face Value | Rs 10 per share |
| Price Band | Rs 210 to Rs 221 per share |
| Lot Size | 67 Shares |
| Total Issue Size | 11,366,063 shares |
| amounting up to Rs 251.19 crore | |
| Fresh Issue | 7,466,063 shares |
| amounting to Rs 165 crore | |
| Offer for Sale | 3,900,000 shares of Rs 10 |
| amounting to Rs 86.19 crore | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 31,720,000 |
| Shareholding post issue | 39,186,063 |
Lot Size of JG Chemicals Limited IPO
| Application | Lots | Shares | Amount |
| Retail Minimum | 1 | 67 | Rs 14,807 |
| Retail Maximum | 13 | 871 | Rs 192,491 |
| Small HNI Minimum | 14 | 938 | Rs 207,298 |
| Small HNI Maximum | 67 | 4,489 | Rs 992,069 |
| Big HNI Minimum | 68 | 4,556 | Rs 1,006,876 |
IPO Reservation of JG Chemicals Limited
| Category Of Investors | Equity Shares Offered |
| Equity shares offered to Qualified Institutional Investors | Not more than 50 percent of the Net Issue |
| Equity shares offered to the Retail Investors | Not less than 35 percent of the Net Issue |
| Equity shares offered to Non-Institutional Investors | Not less than 15 percent of the Net Issue |
Promoters and Shareholdings of JG Chemicals Limited
The promoters of JM Chemicals are Suresh Jhunjhunwala, Anirudh Jhunjhunwala and Anuj Jhunjhunwala.
| Shareholding Pre Issue | 100.00% |
| Shareholding Post Issue |
Time-Table of JG Chemicals Limited IPO
| IPO Open Date | Tuesday, March 5, 2024 |
| IPO Close Date | Thursday, March 7, 2024 |
| Basis of Allotment | Monday, March 11, 2024 |
| Initiation of Refunds | Tuesday, March 12, 2024 |
| Credit of Shares to Demat | Tuesday, March 12, 2024 |
| Listing Date | Wednesday, March 13, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on March 7, 2024 |
Key Performance Indicator
| KPI | Values |
| ROE | 30.50% |
| ROCE | 29.38% |
| Debt/Equity | 0.34 |
| RoNW | 27.49% |
| P/BV | 3.51 |
| PAT Margin (%) | 7.24 |
| Pre IPO | Post IPO | |
| Earning per share (Rs) | 13.6 | 11.01 |
| P/E (x) | 16.25 | 20.08 |
Lead Manager(s) of JG Chemicals Limited IPO
The book-running lead manager for JG Chemicals Limited IPO is Centrum Capital Limited, Keynote Financial Services, Emkay Global Financial Services Limited.
How to Apply for JG Chemicals Limited IPO?
Wait for the public issue to open for subscription, then click here to apply for the JG Chemicals Limited IPO with Bigul.
How to Check Allotment Status of JG Chemicals Limited IPO?
The registrar for JG Chemicals Limited IPO is Kfin Technologies Limited. To check your allotment status, please click here.
FAQs
- What is JG Chemicals Limited IPO?
JG Chemicals Limited IPO is a book-built issue of Rs 252.19 crore. The issue is a combination of fresh issue and offer for sale. The price band for this IPO is set at Rs 210 to Rs 221 per share. The minimum lot size of this application for the retail category is 67 shares.
- Who are the lead managers for the JG Chemicals Limited IPO?
Centrum Capital Limited, Keynote Financial Services, Emkay Global Financial Services Limited was appointed as the lead manager for the IPO.
- What is the role of Kfin Technologies Limited in this IPO?
Kfin Technologies Limited is the registrar for JG Chemicals Limited, handling the IPO’s administrative aspects.
- How can I apply for the JG Chemicals Limited IPO?
The public subscription of this IPO will open on February 22, 2024. Visit Bigul website for the application process.
- How will the net proceeds from the IPO be utilized?
The company is likely to utilize the net funds for the investment in the material subsidiary. Also, The company utilizes the funds to repay or prepayment of certain borrowings availed by the company. Other than this, JG chemical IPO’s net proceeds will be used for funding the long term working capital requirements.
- How can I check the allotment status of the IPO?
Investors can check the allotment status of the JG Chemicals Limited IPO 2024 by clicking here.
- What is the financial performance of JG Chemicals Limited?
The company reported a revenue of Rs 491.1 crores and net profit of Rs 18.51 crores for the period ending on 31 December 2023. Company’s revenue increased by 27.47% and profit after tax increased by 31.69% between the FY ending with March 31 2023 and March 31, 2022.