MUMBAI, 1 March 2024: J.G. Chemicals Limited, the reigning monarch of India's zinc oxide production, has announced its initial public offering (IPO) details.
The company, boasting a 30% market share, is set to open its subscription window on Tuesday, 5 March 2024 and close it on Thursday, 7 March 2024. Investors can grab a piece of the action at a price band of INR 210 to INR 221 per share.
This maiden IPO will see J.G. Chemicals issue fresh shares worth INR 1,650 million and offer existing shareholders a chance to sell up to 3.90 million shares. The company plans to utilize the proceeds from the fresh issue for various purposes, including:
- Investing in its subsidiary: This includes funding working capital, setting up a research and development center, and repaying debt.
- Boosting its own working capital: Strengthening the company's financial backbone.
- General corporate purposes: Supporting future growth initiatives.
J.G. Chemicals, along with its subsidiary, reigns supreme in the Indian zinc oxide market, capturing a 30% share as of March 2022. They utilize the French process, a dominant and widely adopted technique for producing high-quality zinc oxide. The company boasts an impressive product portfolio, offering over 80 grades of zinc oxide and ranking among the top 10 global manufacturers.
Interestingly, the company has managed to outpace the sluggish growth of the tyre industry, its biggest customer segment. While tyre production in India grew at a CAGR of just 0.32% from 2017 to 2021, J.G. Chemicals witnessed a significantly higher CAGR of 13.32% during the same period. This impressive feat is attributed to their strong customer relationships, ability to adapt to market demands, and commitment to quality.
Centrum Capital Limited, Emkay Global Financial Services Limited, and Keynote Financial Services Limited are the book running lead managers for the IPO, while KFin Technologies Limited is the registrar. The shares are expected to be listed on both the BSE and NSE.
With its dominant market position, diverse product portfolio, and impressive growth trajectory, J.G. Chemicals' IPO is likely to attract significant investor interest. So, mark your calendars and be prepared to join the offering when it opens on March 5th!