Home/ Markets / Ipo/  JG Chemicals gets Sebi's nod to launch BSE, NSE IPO. To raise 202.5 crore via fresh issue

JG Chemicals IPO: Kolkata-based Zinc Oxide manufacturer, JG Chemicals Ltd has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO). The company had filed preliminary IPO papers with Sebi on January 4, 2023. The IPO consists of a fresh issue of 202.50 crore and an offer-for-sale of up to 5.7 million equity shares by its existing shareholders and promoters.

The OFS comprises up to 3.64 million equity shares by Vision Projects and Finvest Private Limited, 1.4 lakh equity shares by Jayanti Commercial Limited, 1.27 million equity shares by Suresh Kumar Jhunjhunwala (HUF), and 6.5 lakh equity shares by Anirudh Jhunjhunwala (HUF).

The company in consultation with merchant bankers to the issue may consider a private placement aggregating up to Rs. 40 crore or a secondary sale by selling shareholders of up to 28,50,000 equity shares or a combination thereof. If such placement is completed, the fresh issue size will be reduced.

JG Chemicals IPO net proceeds

The proceeds from the fresh issue will be used for investment in its material arm BDJ Oxides. The company will use 45 crore for repayment of the debt, 5.31 crore to set up a research and development center, 65 crore for funding its long-term working capital requirement for its subsidiary, and 35 crore for its own long-term working capital requirement and general corporate purposes.

Incorporated in the year 2001, by Suresh Jhunjhunwala, JG Chemicals Limited is India’s largest zinc oxide manufacturer in terms of production and revenue. Over the last three years, it marketed and sold its product to over 200 domestic customers and over 50 global customers in more than 10 countries and tyre industry are the largest consumers of its product.

It supplies to 9 out of top 10 global tyre manufacturers and to all of the top 11 tyre manufacturers in India, and also to leading paints manufacturers, footwear players and cosmetics players in India, according to a CARE Report.

Its Material Subsidiary, BDJ Oxides is the only zinc oxide manufacturing facility in India to have an IATF certification, which is preferred by tyre manufacturers supplying to original equipment manufacturers.

JG Chemicals financials

For the fiscal year 2022, the company reported a revenue of 612.83 crore against 435.30 crore a year ago. Net profit for the period stood at 43.13 crore as against 28.80 crore last year.

For the six months ended September 30, 2022, revenue from operations stood at 425.07 crore and net profit stood at 35.71 crore.

Centrum Capital Limited, Emkay Global Financial Services Limited, and Keynote Financial Services Limited are the book-running lead managers to the issue.

Asit Manohar
Chief Content Producer at Live Mint Digital Team
Know your inner investor Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Take the test
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More Less
Updated: 28 Mar 2023, 02:44 PM IST
Recommended For You

Get the best recommendations on Stocks, Mutual Funds and more based on your Risk profile!

Let’s get started
Get alerts on WhatsApp
Set Preferences My Reads Watchlist Feedback Redeem a Gift Card Logout