Active Stocks
Mon Apr 15 2024 10:44:01
  1. Tata Steel share price
  2. 164.20 0.43%
  1. ITC share price
  2. 425.40 -1.09%
  1. Tata Motors share price
  2. 998.30 -1.97%
  1. State Bank Of India share price
  2. 758.00 -1.14%
  1. Wipro share price
  2. 465.40 -1.17%
Business News/ Markets / Ipo/  JG Chemicals IPO to open tomorrow: GMP, issue details, 10 key things to know before investing to 251.19-crore issue
BackBack

JG Chemicals IPO to open tomorrow: GMP, issue details, 10 key things to know before investing to ₹251.19-crore issue

JG Chemicals IPO, with a price band of ₹210 to ₹221 per share, opens on Tuesday, March 5. The company aims to raise funds for investing in its Material Subsidiary, repaying borrowings, and establishing a research center. The IPO listing is tentatively set for March 13.

JG Chemicals IPO opens for subscription on Tuesday, March 5, and will close on Thursday, March 7. (https://jgchem.com/)Premium
JG Chemicals IPO opens for subscription on Tuesday, March 5, and will close on Thursday, March 7. (https://jgchem.com/)

JG Chemicals IPO opens for subscription tomorrow (Tuesday, March 5). In terms of both output and income, JG Chemicals is India's largest manufacturer of zinc oxide, according to the Red Herring Prospectus (RHP). This is due to the fact that JG Chemicals employs the French method, which is the most widely used manufacturing technology in the Americas, Europe, and Asia for the manufacture of zinc oxide (CARE report).

The firm is one of the top 10 producers of zinc oxides worldwide and distributes more than 80 grades of the metal.

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

"Exciting news! Mint is now on WhatsApp Channels 🚀 Subscribe today by clicking the link and stay updated with the latest financial insights!" Click here!

Numerous industrial sectors, including the rubber sector (tyres and related products), ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics and batteries, agrochemicals and fertilisers, specialty chemicals, lubricants, oil and gas and animal feed, use the company's products.

As of December 31, 2023, the company's three manufacturing facilities—Jangalpur, Kolkata, West Bengal; Belur, Kolkata, West Bengal; and Naidupeta, Nellure District, Andhra Pradesh, which is its largest manufacturing facility and is owned and run by its Material Subsidiary—accounted for its combined installed capacity of 77,040 MTPA.

As per the RHP, the company's listed peers are Rajratan Global Wire Ltd ( with a P/E of 33.43), NOCIL Ltd (with a P/E of 30.97), and Yasho Industries Ltd (with a P/E of 30.03).

Between March 31, 2022, and March 31, 2023, JG Chemicals Limited's profit after tax (PAT) climbed by 31.69%, while its sales increased by 27.47%.

JG Chemicals IPO details.
View Full Image
JG Chemicals IPO details.

Also Read: JG Chemicals gets Sebi's nod to launch BSE, NSE IPO. To raise 202.5 crore via fresh issue

Here are the 10 key things to know about JG Chemicals IPO:

JG Chemicals IPO date: JG Chemicals IPO opens for subscription on Tuesday, March 5, and will close on Thursday, March 7.

JG Chemicals IPO price band: The price band has been set in the range of 210 to 221 per equity share of the face value of 10.

JG Chemicals IPO lot size: Investors can bid for a minimum of 67 equity shares and in multiples of 67 equity shares thereafter.

Anchor investors: The allocation to anchor investors for JG Chemicals IPO is scheduled to take place today (Monday, March 4).

Also Read: RK Swamy IPO fully subscribed: GMP, review, subscription status, price, date, other details. Apply or not?

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.

JG Chemicals IPO objectives: 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.

JG Chemicals IPO listing date and allotment details: 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.

Lead Manager and Registrar of JG Chemicals IPO: 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.

JG Chemicals IPO reservation: 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.

JG Chemicals IPO GMP today: JG Chemicals IPO grey market premium is +50. This indicates JG Chemicals share price were trading at a premium of 50 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of JG Chemicals share price was indicated at 271 apiece, which is 22.62% higher than the IPO price of 221.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Also Read: Mukka Proteins IPO: GMP, subscription status to review. Apply or not as bidding ends today?

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

 

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

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
Published: 04 Mar 2024, 04:59 PM IST
Next Story footLogo
Recommended For You
GENIE RECOMMENDS

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

Let’s get started
Switch to the Mint app for fast and personalized news - Get App