JG Chemicals IPO Review


JG Chemicals, a prominent zinc oxide manufacturer based in West Bengal, is set to embark on its Initial Public Offering (IPO) journey with the IPO dates and price band now fixed.

The IPO is scheduled to open on March 5, with a price band ranging from Rs 210 to Rs 221 per share.

Anchor investors have the opportunity to bid in the JG Chemicals issue on March 4, while the IPO is expected to conclude on March 7.

The company aims to raise Rs 251.19 crore at the upper end of the price band.

In this IPO, JG Chemicals plans to issue new shares amounting to Rs 165 crore, alongside an Offer for Sale (OFS) of 39 lakh equity shares by the promoters.

The promoters include Vision Projects & Finvest, Jayanti Commercial, Suresh Kumar Jhunjhunwala (HUF), and Anirudh Jhunjhunwala (HUF), who will participate in the OFS.

The allocation structure for the JG Chemicals IPO is divided with 50 percent reserved for qualified institutional buyers, 15 percent for non-institutional investors, and the remaining 35 percent for retail investors.

Following the IPO closure, the listing of the company’s shares is slated for March 11.

The merchant bankers for this IPO include Centrum Capital, Emkay Global Financial Services, and Keynote Financial Services.

From the funds generated through the new share issuance, JG Chemicals plans to invest Rs 91.06 crore in its subsidiary company BDJ Oxides.

Additionally, Rs 35 crore will be allocated for long-term working capital needs, while the remaining funds will be earmarked for general corporate purposes.

JG Chemicals operates in diverse industries such as Tire and other Rubber Products, Ceramics, Paints and Coatings, Pharma and Cosmetics, Electronics and Battery, Agro Chemicals and Fertilizers, Specialty Chemicals, Lubricants, Oil and Gas, and Animal Feed.

The company’s financials reflect positive growth, with the consolidated net profit increasing by 31.7 percent YoY to Rs 56.8 crore in the financial year 2023.

The revenue from operations also experienced a substantial uptick, rising by 28 percent to reach Rs 784.6 crore.

Investors and stakeholders keenly anticipate the IPO as JG Chemicals gears up to enter the public market, backed by a strong financial performance and a strategic allocation plan for the raised funds.



JG Chemicals IPO: Price Band Fixed, Issue Open on March 5