(L-R) Mr. Anirudh Jhunjhunwala, MD & CEO, Mr. Suresh Jhunjhunwala, Chairman and Mr. Anuj Jhunjhunwala, Director & CFO at their IPO announcement at Mumbai
J.G.ChemicalsLimited’s Initial
Public Offering to open on Tuesday, March 5, 2024, price band set at ₹210/- to
₹221/- per Equity Share
Mumbai, February 29, 2024: J.G.Chemicals Limited, India’s largest zinc oxide manufacturer in terms of production and revenue, has fixed the price band of ₹210/- to ₹221/- per Equity Share of face value ₹10/- each for its maiden initial public offer. The Initial Public Offering (“IPO” or “Offer”) of the Company will open on Tuesday, March 5, 2024, for subscription and close on Thursday, March 7, 2024. Investors can bid for a minimum of 67 Equity Shares and in multiples of 67 Equity Shares thereafter.
Mr. Anirudh Jhunjhunwala, MD & CEO, J.G. Chemicals Limited addressing to media for their IPO announcement at Mumbai
The issue consists
of a fresh issue of equity shares worth Rs 1,650 million and an offer for sale
(OFS) of up to 3.90 million equity shares by investor selling shareholders.
J.G. Chemicals along with its subsidiary are India’s largest zinc
oxide manufacturer in terms of production and revenue through French process,
with a market share of around 30% as of March 2022. It uses French process for
the manufacturing zinc oxide, a dominant production technology for producing
zinc oxide adopted by all the major producers in Americas, Europe and Asia. (Source:
CARE Report)
It sells over 80 grades of zinc oxide and are among the top ten manufacturers of zinc oxides globally. Companies in the tyre industry in India are the largest consumers of its product. The Company also supplies to leading paints manufacturers, footwear players and cosmetics players in India.
Its product caters to a wide spectrum of industrial applications, including in the rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, speciality chemicals, lubricants, oil & gas and animal feed.
From
Fiscals 2017 to 2021, tyre production in India has grown at a CAGR of 0.32%,
according to a CARE Report, whereas in the same period, the company’s volumes
have grown at a significantly higher CAGR of 13.32%. Despite the slow growth of
the biggest end-use industry customer, it has been able to grow primarily on
account of its long-term relationships with tyre companies which have been
developed through the products it offers them; its ability to scale up
production and quality systems as per the customer requirements.
Centrum
Capital Limited, Emkay Global Financial Services Limited, and Keynote Financial
Services Limited are the book running lead managers and KFin Technologies Limited is the registrar of the offer. The
equity shares are proposed to be listed on the BSE and NSE.
Notes
for Reference:
Issue
Size of the IPO based on the upper and lower end of the price band
|
Fresh |
OFS (39,00,000 equity
shares) |
Total |
Lower Band (@Rs 210) |
Rs 165 crore |
Rs 81.90 crore |
Rs 246.90 crore |
Upper Band (@Rs 221) |
Rs 165 crore |
Rs 86.19 crore |
Rs 251.19 crore |