JG Chemicals, a prominent manufacturer of zinc oxide, is gearing up for its initial public offering (IPO) scheduled to open for public bidding on March 5. The company has set the price band for the IPO in the range of Rs 210-221 per share, with bidding to be conducted in lots of 67 equity shares and multiples thereafter. Investors have until March 7 to participate in the bidding process.
Key Offering Details: Incorporated in 1975, JG Chemicals specializes in producing over 80 grades of zinc oxide, catering to diverse industrial applications such as ceramics, paints and coatings, pharmaceuticals, cosmetics, electronics, batteries, agrochemicals, fertilizers, specialty chemicals, lubricants, oil & gas, and animal feed.
The IPO comprises a fresh issue of Rs 165 crore and an offer-for-sale (OFS) of up to 39 lakh equity shares by promoters Vision Projects & Finvest, Jayanti Commercial, Suresh Kumar Jhunjhunwala (HUF), and Anirudh Jhunjhunwala (HUF). The company aims to raise a total of Rs 251.19 crore through this IPO. The anchor book for the issue is set to open on March 4.
Utilization of Proceeds: The net proceeds from the IPO will be directed towards funding long-term working capital requirements, investing in the material subsidiary, BDJ Oxides, for the repayment or pre-payment of certain borrowings, funding capital expenditure requirements, and general corporate purposes.
Operational Landscape: JG Chemicals operates three manufacturing facilities, with two located in Jangalpur and Belur (both in Kolkata, West Bengal), and one in Naidupeta (Nellore), Andhra Pradesh. The Naidupeta facility, the largest among them, is owned and operated by the material subsidiary. The company serves more than 200 local and 50 international clients across 10 countries.
Reservation and Allocation: JG Chemicals has reserved 50% of the net offer for qualified institutional investors (QIBs), while non-institutional investors (NIIs) will have 15% of shares reserved for them. Retail investors can partake in 35% of the total offering.
Lead Managers and Registrar: Centrum Capital, Emkay Global Financial Services, and Keynote Financial Services are the book running lead managers for the JG Chemicals IPO, while Kfin Technologies will serve as the registrar for the issue.
As JG Chemicals steps onto the IPO stage, investors are keenly observing the offering, which reflects the company’s growth trajectory and market prospects.
