JG Chemicals IPO - Investment Rationale, Financials, Valuations, Key Risks And More: Anand Rathi

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Anand Rathi's IPO Report.JG Chemicals Ltd. launched its initial public offering today and will conclude on March 07. India's largest zinc oxide manufacturer has fixed the price band fixed in the range of Rs 210 to Rs 221 per share.The Rs 251.2 crore IPO comprises of fresh issue of Rs 165 crore and an offer for sale of Rs 86.19 crore. The minimum order lot is 67. The company's shares will be listed on the National Stock Exchange and the BSE..Object of the issue:Investment in Material Subsidiary, viz. BDJ Oxides repayment or pre-payment, in full or in part, of all or certain borrowings availed by its Material Subsidiary; funding capex requirements for setting up of a R&D center situated in Andhra Pradesh.Long-term working capital requirements.General corporate purposes..Valuation JG Chemicals has a leading market position with a diversified customer base, being supplier to nine out of top 10 global tyre manufacturers and to all the top 11 Indian tyre manufacturers with high entry barriers in key end-use industries and long-term relationships with customers and suppliers and having robust supply chain with more than 250 customers in last three years along with focus on long term sustainability with environmental initiatives and safety standards. At the upper price band company is valuing at price/earning of 15.76 times and enterprise value/Ebitda 12.3 times with a market cap of Rs 8,660 million post issue of equity shares. We believe that the IPO is fairly priced and recommend a “Subscribe-Long term” rating to the IPO..Click on the attachment to read the full IPO report:.JG Chemicals IPO: All You Need To Know.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

JG Chemicals IPO - Investment Rationale, Financials, Valuations, Key Risks And More: Anand Rathi

The Rs 251.2 crore IPO launched today and will conclude on March 07, with a price band fixed in the range of Rs 210 to Rs 221 per share.

NDTV Profit

NDTV Profit

Follow Us

DOWNLOAD THE APP

JG Chemicals IPO - Investment Rationale, Financials, Valuations, Key Risks And More: Anand Rathi

The Rs 251.2 crore IPO launched today and will conclude on March 07, with a price band fixed in the range of Rs 210 to Rs 221 per share.

Choose a plan

Follow Us

DOWNLOAD THE APP