JG Chemicals IPO Subscribed 27.78 Times On Day 3

The initial public offering of JG Chemicals Ltd. was subscribed 27.78 times on the final day.

The IPO was subscribed 6.40 times on its second day, mainly led by retail participation. The company launched its three-day IPO to raise up to Rs 251.2 crore.

The IPO is a combination of a fresh issue of Rs 165 crore and an offer for sale of Rs 86.2 crore, with the price band fixed in the range of Rs 210–221 per share.

The zinc oxide manufacturer collected over Rs 75 crore from anchor investors a day before its IPO. The company allotted 34.09 lakh shares to four funds at Rs 221 apiece.

As part of the OFS, Vision Projects & Finvest Pvt., Suresh Kumar Jhunjhunwala (HUF), Anirudh Jhunjhunwala and Jayanti Commercial Ltd. will offload equity shares.

Centrum Capital Ltd., Emkay Global Financial Services Ltd. and Keynote Financial Services Ltd. are the book-running lead managers for the issue.

• Issue opens: March 5.

• Issue closes: March 7. 

• Issue price: Rs 210–221 per share.

• Fresh issue: Rs 165 crore.

• Offer for sale: Rs 86.2 crore.

• Total issue size: Rs 251.2 crore.

• Market value at upper end of price band: Rs 1,005.1 crore.

• Listing: BSE and NSE.

• Lot size: 67 shares or multiples thereof.

• Proceeds worth Rs 910 crore will be used in BDJ Oxides, a subsidiary of the company. The funds will be used for repayment, funding capital-expenditure requirements for setting up of a research and development centre, and funding the long-term working-capital requirements of the subsidiary.

• A total of Rs 35 crore from the issue will be used for funding the long-term working capital requirements of the company.

JG Chemicals is the largest zinc oxide manufacturer in terms of production and revenue, with a 30% market share. The company sells over 80 grades of zinc oxide and is among the top 10 manufacturers of zinc oxide globally.

The company's products cater to a wide spectrum of industrial applications, including rubber, ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics and batteries, agrochemicals and fertilisers, and specialty chemicals.

Over the last three years, the company has sold products to over 200 domestic customers and over 50 global customers in more than 10 countries.

The IPO has been subscribed 27.78 times as of 7 p.m. on Thursday.

• Institutional investors: 32.09 times

• Non-institutional investors: 46.33 times.

• Retail investors: 17.44 times.