Zinc oxide manufacturer JG Chemicals IPO opened for subscription today, March 5, 2024, and will close on March 7, 2024. The initial share sale will open for public subscription during the period. The bidding for anchor investors was opened for a day on March 4.
JG Chemicals IPO Price Band
JG Chemicals fixed a price band of Rs 210-221 apiece for its Rs 251-crore Initial Public Offering.
JG Chemicals IPO Issue Size
The Rs 251.2-crore IPO comprises a fresh issue of equity shares worth up to Rs 165 crore and an Offer For Sale (OFS) of 39 lakh equity shares aggregating to Rs 86.2 crore, at the upper end of the price band, by the promoter group.
As part of the OFS, Vision Projects & Finvest Pvt Ltd, Suresh Kumar Jhunjhunwala (HUF), Anirudh Jhunjhunwala (HUF) and Jayanti Commercial Ltd will offload equity shares.
JG Chemicals IPO Objective
Proceeds from the fresh issue to the tune of Rs 91 crore will be utilised for investing in JG Chemicals’ material subsidiary BDJ Oxides and Rs 35 crore will be used for funding the long-term working capital requirements of the company, besides, a portion will be used for general corporate purposes.
JG Chemicals IPO GMP
GMP, in the context of an IPO, stands for Grey Market Premium. It’s an unofficial figure that indicates the unlisted price of the shares at which they are being traded in the unregulated grey market. This price is determined by supply and demand among interested investors before the official listing on the stock exchange.
GMP Of JG Chemicals IPO: Rs 50.
GMP is unofficial and not indicative of the actual listing price. It’s crucial to conduct thorough research on the company, the IPO details, and the overall market conditions before making any investment decisions.
About JG Chemicals
The Kolkata-based firm is India’s largest zinc oxide manufacturer in terms of production and revenue. It sells over 80 grades of zinc oxide and is among the top ten manufacturers of zinc oxides globally.
The tyre industry in India is the largest consumer of its product.
The firm also supplies to leading paint manufacturers, footwear players, and cosmetics players in the country.
Half of the issue size has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors, and the remaining 35 per cent for retail investors.
Investors can bid for a minimum of 67 equity shares and in multiples of 67 equity shares thereafter.
Centrum Capital Ltd, Emkay Global Financial Services Ltd and Keynote Financial Services Ltd are the book-running lead managers to the issue.
The equity shares of the company are proposed to be listed on both BSE and NSE.
JG Chemicals on Monday said it has collected over Rs 75 crore from anchor investors, a day before IPO.
The company has allotted 34.09 lakh shares to four funds at Rs 221 apiece, which is also the upper end of the price band, according to a circular uploaded on BSE’s website.
At this price, the company has garnered Rs 75.36 crore from anchor investors.
Massachusetts Institute of Technology, Carnelian Structural Fund, Pinebridge Global Funds and SBI General Insurance Company were among the anchor investors.
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