The Initial Public Offering of J.G.Chemicals Limited was subscribed 27.78 times on the final day of bidding.
The issue received bids of 22,69,11,245 shares against the offered 81,68,714 equity shares, at a price band of ?210-221, according to the data available on the stock exchanges.
Non-Institutional Investors Portion and Qualified Institutional Buyer Portion was subscribed with 46.32 times and 32.09 times respectively, whereas Retail Portion subscribed 17.43 times.
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.
Company Information
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 Fiscal 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 Company's biggest end-use industry customer, it has been able to grow primarily on account of inter alia 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; certainty of and on time supply of its products to its customers; and its ability offer the right quality at the right price to its customers. |
