J.G.Chemicals IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP

In this article, we will address the recent J.G. Chemicals IPO update shared by India’s largest Zinc manufacturer, J.G. Chemicals Limited.

The business has submitted preliminary paperwork to capital markets regulator SEBI to raise money through the J.G Chemical IPO.

The news made it to the public media on January 06, 2023. Thus, even if many details might not have been made public yet, this bit is confirmed that the IPO will take place this year itself.

The following J.G Chemical IPO Review will cover all the information.

J.G.Chemicals IPO Overview

The J.G Chemical IPO consists of a new issue of Rs 202.50 crore and an offer-for-sale by the company’s current shareholders and promoters of up to 5.70 million shares.

Up to 3.64 million shares are held in the OFS by Vision Projects and Finvest Pvt Ltd, 0.14 million shares are held by Jayanti Commercial Ltd, 1.27 million shares are held by Suresh Kumar Jhunjhunwala (HUF), and 0.65 million shares are held by Anirudh Jhunjhunwalal (HUF).

Not much data has been revealed by the DRHP. This review will cover all the relevant data available currently in the market

J.G.Chemicals IPO Important Dates

When it comes to IPO listings, having the correct bidding dates makes a huge difference in both the bidding process and stock analysis.

The organization has not yet provided information regarding the open-close, allocation, listing, etc. dates. These J.G. Chemicals IPO dates will be made public as soon as the business receives approval for the IPO documents.

J.G.Chemicals IPO Price, Size, Share Offerings

The J.G. Chemicals IPO size and the face value per share are the next critical details to understand. The many interested parties may begin bidding for the shares based on the lot size.

The company has submitted a DRHP declaring a fresh issue of Rs 202.50 crore and an offer-for-sale of up to 5.70 million shares, according to the information made public.

The face value of each share remains at Rs. 10. The J.G. Chemicals IPO price band is not yet available.

Additionally, the company may think about the placement of equity shares before its initial public offering (IPO) totaling Rs 40 crore, a secondary sale of 2.85 million equity shares by its selling shareholders, or a combination of both.

The fresh issue size or offer-for-sale component will be decreased if such a placement is made. The above table will be updated as soon as the information is available.

J.G.Chemicals IPO Grey Market Premium

The premium charged over and above the price range of the IPO listed share price is known as the “grey market premium” and the shares are then traded at this new price in the grey market.  A few days before the IPO bidding dates, grey market trading starts.

A few days before the IPO bidding dates, grey market trading starts. However, in this case, since the business hasn’t even disclosed the IPO bidding dates, there is no activity on the grey market.

The information in the table above regarding the J.G. Chemical IPO GMP and related information will be made available after investors begin transacting on the black market.

J.G.Chemicals IPO Subscription Status

The company has only filed the IPO documents. The subscription status is now nil because there is still time for the bidding to begin.

However, when the IPO bidding starts in the future, interested parties can access the J.G. Chemical IPO Subscription status in real-time by visiting here.

J.G.Chemicals IPO Allotment Status

The allocation of shares made available by the corporation to the various investor groups is as follows: 15% for National Institutional Investors, 35% for Retail Investors, and 50% for Qualified Institutional Buyers.

As the IPO goes live, the actual J.G. Chemical IPO Allotment done in each of the investor classes can be viewed at this link.

J.G.Chemicals IPO Live Performance

The easiest way to monitor the J.G. Chemical share price and gauge investor sentiment toward the stock is to follow the J.G. Chemical IPO performance in real-time. Check out this link to learn more if you’re interested in doing the same.

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Latest J.G.Chemicals IPO News

The DRHP filing for J.G. Chemical is the most important IPO news. There is presently no additional information available besides this J.G. Chemical IPO news.

To help investors evaluate the shares, the media is currently reporting on the company’s strengths and financial performance.

J.G.Chemicals – Company Review

According to production and income, J.G. Chemical is the largest producer of zinc oxide in India using the French process, the industry-standard production method for zinc oxide that has been adopted by all the major producers in the Americas, Europe, and Asia.

The company has a market share of about 30%. They are among the top 10 manufacturers of zinc oxides worldwide and sell over 80 different grades of the metal.

The major market for the company’s goods in India is the tyre sector. The company also provides raw materials to some of the nation’s top shoe, cosmetics, and paint producers.

As of October 31, 2022, its three manufacturing plants, which are located in Jangalpur (West Bengal), Belur (West Bengal), and Naidupeta (Andhra Pradesh), together have an installed capacity of 77,040 MTPA.

Products or Services

The product from JGCL can be used in a variety of industrial applications. The industries which can utilize the raw materials of the company are rubber (tyres and other rubber goods), ceramics, paints and coatings, medicines and cosmetics, electronics and batteries, specialty chemicals, agro-chemicals and fertilizers, lubricants, oil and gas, and animal feed.

The company’s Material Subsidiary, BDJ Oxides, is the only zinc oxide production plant in India with an IATF accreditation, making it the choice of tyre producers who supply original equipment manufacturers.

Promoters and Holding

The promoters of the company are:

• Suresh Jhunjhunwala (Executive Chairman and Whole-time Director)
• Anirudh Jhunjhunwala (Managing Director and CEO)
• Anuj Jhunjhunwala (Whole-time Director and CFO)

Is J.G.Chemicals good for Investment?

Due to its competitive advantages, JGCL has grown its revenues and profits over the last three fiscal years. These advantages include product pricing, economies of scale, and the potential to scale the company. They also increase customer loyalty and broaden the clientele.

With such a strong market position, the company is almost ready to launch the J.G. Chemical IPO, turning its private corporation into a public one.

The fact that the company operates in an industry with a high entry barrier and has established relationships with its suppliers and customers is one of the company’s key characteristics that makes it a worthwhile investment.

J.G.Chemicals Financial Statements

J.G.Chemicals IPO Review

This J.G.Chemicals IPO Review provides an in-depth look into the segments in which the company is planning to inject the raised funds.

The fresh issue’s proceeds will be invested in its important subsidiary, BDJ Oxides. It would spend Rs 45 crore to pay back loans taken out by its arm, Rs 5.31 crore to establish a center for research and development, and Rs 65 crore to cover the long-term working capital needs of its material arm.

Additionally, it will spend Rs 35 crore for other general business needs as well as the company’s long-term working capital requirements.

With such clear-cut defined fund utilization, the company is ready to launch the J.G.Chemicals IPO.

J.G.Chemicals IPO Details

Here are few more details you need to know before investing in J.G.Chemicals IPO –

J.G.Chemicals IPO Issue Object

The J.G.Chemicals has proposed diverse objectives for making the IPO offer and some of the objectives are:

• Investment in our Material Subsidiary, viz. BDJ Oxides (i) repayment or pre-payment, in full or in part, of all or certain borrowings availed by our Material Subsidiary; (ii) funding capital expenditure requirements for setting up of a research and development centre situated in Naidupeta (“R&D Centre”); and (iii) funding its long-term working capital requirements
• Funding long-term working capital requirements of our Company; and
• General corporate purposes.

J.G.Chemicals IPO – Basis of Offer Price

The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

Qualitative factors are:

• Leading market position with a diversified customer base;•High entry barriers in key end-use industries;
• Strong and consistent financial performance;
• Long-term relationships with customers and suppliers & having robust supply chain;
• Experienced and dedicated management team; and
• Focus on long term sustainability with environmental initiatives and safety standards

Quantitative factors are:

J.G.Chemicals IPO Lead Managers

Here are the list of Lead managers –

• Centrum Capital Limited
• Emkay Global Financial Services Limited
• Keynote Financial Services Limited

J.G.Chemicals IPO Registrar to offer

Check out the details of the registrar here –

KFin Technologies Limited
Selenium, Tower B, Plot No. 31 and 32
Financial District, Nanakramguda, Serilingampally
Hyderabad, Rangareddi 500 032, Telangana, India
Telephone: +91 40 6716 2222;
Toll Free No.: 18003094001
E-mail: jgchemicals.ipo@kfintech.com
Website:www.kfintech.com
Investor grievance e-mail:einward.ris@kfintech.com
Contact Person: M. Murali Krishna
SEBI registration number.: INR000000221

J.G.Chemicals IPO – Other Details

• Statutory Auditor – S. Jaykishan, Chartered Accountants
• Legal Counsel to the Company – Link Legal
• Bankers to the Company – Bank of Baroda and Citibank

J.G.Chemicals IPO Verdict by Stock Brokers

Since the J.G. Chemical IPO is still in the very early stages of development, stock brokers are only currently assessing the market’s general growth and the company’s financial success.

More analysts will voice their perspectives as more hearings get underway.

J.G.Chemicals IPO – Conclusion

J.G. Chemical serves a wide variety of end-use industries and has a long-standing relationship with a select number of high-profile clients in those sectors.

They have advertised and sold their product for the past three years to more than 200 local clients as well as more than 50 international consumers in over 10 different countries.

It has been able to further broaden and extend its commercial partnerships as a result of the client base’s diversity throughout the domestic and international markets.

Additionally, the company will be able to investigate numerous other domestic and international growth opportunities thanks to the soon-to-be-announced IPO.

We hope you found the J.G. Chemical IPO Review useful. Keep checking back for more recent updates.

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J.G.Chemicals IPO Review FAQs

Check out the FAQs on J.G.Chemicals IPO –

What is the Issue Size of J.G.Chemicals IPO?

The Company is making an initial public offer of NA equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.

What is the Price band of J.G.Chemicals IPO?

The price band for this particular IPO ranges between Rs.NA to Rs.NA. As far as the face value of the share is of concern, it is Rs.10 per share.

What is the J.G.Chemicals IPO Open Date?

The opening and closing dates for this IPO have been updated. The IPO is set to open on NA, while the closing date is set at NA.

What is the J.G.Chemicals IPO Allotment Date?

They also have the news regarding the respective allotment dates of this IPO. Basis of Allotment finalization is on NA, refund initiation is on NA, credit of shares is on NA, and share listing date is on NA.

What is the J.G.Chemicals IPO Listing Date?

Shares of this company shall be listed in the exchanges NA. The date, when the listing would be done, is stagnant on NA.

Who is the Registrar of J.G.Chemicals IPO?

One of the reputed registrars is managing the issue of this IPO, i.e. KFin Technologies Limited. Their website will help you regarding the further information you are on the lookout for.

Who is the Promoter of J.G.Chemicals IPO?

Here are the promoters of this IPO – SURESH JHUNJHUNWALA, ANIRUDH JHUNJHUNWALA AND ANUJ JHUNJHUNWALA. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.

What is the GMP of J.G.Chemicals IPO?

They have obtained the GMP of this IPO and it is Rs.NA. Further insights of Kostak rate and subject to sauda or SS are as well included in this report.

Is J.G.Chemicals IPO good for Investment?

They have further provided the financial status of the company in this article, from the past few years. You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.

What is the PAT of J.G.Chemicals Company?

They have the information of company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2022 in Million is 431.26, 2021 is 287.99, 2020 is 139.53. PAT from Sep 2022 is 357.13.

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