JG Chemicals IPO: Price band set at ₹210-221 per share; check issue details, key dates, more

The JG Chemicals IPO price band has been set in the range of ₹210 to ₹221 per equity share of the face value of ₹10. The JG Chemicals IPO date of subscription is scheduled for Tuesday, March 5, and will close on Thursday, March 7. The allocation to anchor investors for the JG Chemicals IPO is scheduled to take place on Monday, March 4.

The floor price is 21 times the face value of the equity shares and the cap price is 22 times the face value of the equity shares. The price/earnings ratio based on diluted EPS for fiscal 2023 at the lower end of the price band is 12.12 times and at the upper end of the price band is 12.76 times as compared to the average industry peer group price/earnings ratio of 31.48 times. The JG Chemicals IPO lot size is 67 equity shares and in multiples of 67 equity shares thereafter.

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JG Chemicals IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Tentatively, JG Chemicals IPO basis of allotment of shares will be finalised on Monday, March 11, and the company will initiate refunds on Tuesday, March 12, while the shares will be credited to the demat account of allottees on the same day following refund. JG Chemicals share price is likely to be listed on BSE and NSE on Wednesday, March 13.

Anirudh, Anuj, and Suresh Jhunjhunwala are the company's promoters. According to the Red Herring Prospectus (RHP), the promoters own 11,960,000 equity shares, or 37.71% of the company's issued, subscribed, and paid-up equity share capital.

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JG Chemicals IPO details 

JG Chemicals IPO, which is worth 251.19 crore, comprises a fresh issue of ₹165 crore, and an offer-for-sale (OFS) of up to 3,900,000 equity shares of face value of ₹10, aggregating to ₹86.19 crore, each by the promoters and other investors.

The selling shareholders are Vision Projects & Finvest Private Ltd (offloading up to 2,028,900), Jayanti Commercial Limited (selling up to 1,100 equity shares), Suresh Kumar Jhunjhunwala (HUF) (selling up to 1,260,000 equity shares), and Anirudh Jhunjhunwala (HUF) (offloading up to 610,000 equity shares). 

The net proceeds will be used for the following purposes by the company: investing in the Material Subsidiary, BDJ Oxides; (i) repaying or prepaying all or some of the borrowings that the Material Subsidiary has taken out; (ii) financing the capital expenditures needed to establish a research and development centre in Naidupeta; and (iii) financing the extended working capital needs of the company.

The book running lead managers of the JG Chemicals IPO are Centrum Capital Limited, Emkay Global Financial Services Ltd, and Keynote Financial Services Ltd. The registrar of the offering is Kfin Technologies Limited.

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