
JG Chemicals Limited (MAINBOARD)
Mar 5, 2024 - Mar 7, 2024
Price | ₹210 - ₹221 |
Premium | ₹5 |
---|---|
Lot size | 67 |
Allotment | Mar 11, 2024 |
Listing | Mar 13, 2024 |
Category | Lot(s) | Qty | Amount | Reserved |
---|---|---|---|---|
Retail | 1 | 67 | 14807 | 59375 |
sHNI | 14 | 938 | 207298 | 606 |
bHNI | 68 | 4556 | 1006876 | 1212 |
Last Updated as on 07-Mar-2024 17:54:00
Category | Offered | Applied | Times |
---|---|---|---|
QIBs | 2273214 | 73493841 | 32.33 |
HNIs | 1704910 | 81695780 | 47.92 |
HNIs (10+L) | 1136606 | 57123999 | 50.26 |
HNIs (2-10L) | 568303 | 24571781 | 43.24 |
Retail | 3978122 | 71721624 | 18.03 |
Total | 7956246 | 226911245 | 28.52 |
Total Application : 1,012,547 |
QIB Interest Cost per share (7 Days) | |||||
---|---|---|---|---|---|
@7% ₹9.59 | @8% ₹10.96 | @9% ₹12.33 | @10% ₹13.7 | @11% ₹15.07 | @12% ₹16.44 |
Big HNI (10+L) Cost per lot (7 Days) |
---|
Assuming fix interest of ₹2000 per application Big HNI (10+L) costing for every 1 lot allotment is ₹20104 |
ANCHOR INVESTOR DETAILS | |||
---|---|---|---|
Name of Anchor | No. of Shares | % Portion | Amount (cr) |
MASSACHUSETTS INST. OF TECHENOLOGY | 1810005 | 53.08% | 40.00 |
CARNELIAN STRUCTURAL SHIFT FUND | 694643 | 20.37% | 15.35 |
PINEBRIDGE GLOBAL FUNDS- (INDIA EQUITY FUND) | 452585 | 13.27% | 10.00 |
SBI GENERAL INSURANCE COMPANY | 452585 | 13.27% | 10.00 |
3409818 | 100% | 75.36 |
Jg Chemicals Limited, established in 1975, stands as a leading zinc oxide manufacturing company utilizing the French process, boasting a versatile portfolio comprising over 80 grades of zinc oxide. With extensive industrial applications spanning ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics and batteries, agrochemicals and fertilizers, specialty chemicals, lubricants, oil and gas, and animal feed, the company caters to diverse market segments. Operating three state-of-the-art manufacturing facilities located in Jangalpur and Belur, Kolkata, West Bengal, and Naidupeta in Nellore District, Andhra Pradesh, with the latter being the largest facility owned by the Material Subsidiary, JC Chemicals Limited ensures high-quality production adhering to ISO 45001:2018, ISO 14001:2015, and ISO 9001:2015 standards. With a robust financial performance highlighted by revenue growth and a compound annual growth rate (CAGR) of 23.87% between fiscal years 2020 and 2022, coupled with a global footprint serving over 200 local and 50 international clients across 10+ countries, the company maintains a strong position in the market, supported by a dedicated workforce of over 100 permanent employees, laborers, and trainees as of October 31, 2022.
JG Chemicals IPO Details
Total Issue Size | [11366063] shares (aggregating up to ₹[251.19] Cr) |
Fresh Issue | [7466063] shares (aggregating up to ₹165 Cr) |
Offer for Sale | 3900,000 shares of ₹10 (aggregating up to ₹[86.19] Cr) |
Issue Type | Book Built Issue IPO |
Listing At | BSE, NSE |
Share holding pre issue | 31,720,000 |
Share holding post issue | 39,186,063 |
JG Chemicals IPO Reservation
Investor Category | Shares Offered |
---|---|
QIB Shares Offered | Not more than 50% of the Net Issue |
Retail Shares Offered | Not less than 35% of the Net Issue |
NII (HNI) Shares Offered | Not less than 15% of the Net Issue |
KEY PERFORMANCE INDICATOR
KPI | 2023 | 2022 | 2021 |
---|---|---|---|
ROE | 30.50% | 30.64% | 25.27% |
ROCE | 29.38% | 25.83% | 25.27% |
RONW | 27.49% | 27.09% | 21.61% |
D/E | 0.34 | 0.62 | 0.69 |
EPS | 17.32 | 12.61 | 7.39 |
P/E | 16.25 | ||
P/BV | 3.51 |
COMPANY FINANCIALS
Period | 2023 | 2022 | 2021 |
---|---|---|---|
Assets | 297.79 | 264.14 | 209.94 |
Revenue | 794.19 | 623.05 | 440.41 |
Profit | 56.793 | 43.126 | 28.799 |
Net Worth | 199.90 | 147.66 | 108.48 |
Borrowing | 70.351 | 93.941 | 74.45 |
Amount in cr. |
Strength Factors
High Entry Barriers in Key End-Use Industries: The company operates in industries characterized by high entry barriers, indicating the strength of its market position and the difficulty for new competitors to enter. This barrier helps protect the company's market share and profitability over the long term.
Strong Financial Performance: Jg Chemicals Limited has consistently delivered strong financial results, with impressive growth rates in revenue from operations and profit after tax, showcasing the company's ability to generate sustainable growth and profitability over time.
Long-Term Relationships with Customers and Suppliers: The company's establishment of long-term relationships with both customers and suppliers underscores its commitment to reliability, trust, and mutual benefit. With a robust supply chain and a significant customer base of over 250 clients in the last three years, Jg Chemicals Limited has solid foundations for continued success and expansion.
Experienced and Dedicated Management Team: Jg Chemicals Limited is guided by an experienced and dedicated management team, whose expertise and strategic vision drive the company's growth and success. This leadership ensures effective decision-making and execution of business strategies in alignment with organizational goals.
Focus on Long-Term Sustainability: The company's focus on long-term sustainability, coupled with environmental initiatives and adherence to safety standards, reflects its commitment to corporate social responsibility and ethical business practices. By prioritizing sustainability, JC Chemicals Limited not only mitigates risks associated with environmental impacts but also enhances its reputation and competitiveness in the market, appealing to environmentally conscious stakeholders.
Risk Factors
Dependency on Material Subsidiary: The Company’s significant reliance on the business operations of its material subsidiary, BDJ Oxides Private Limited, poses a considerable risk. Any deterioration in the performance of the subsidiary could adversely impact Jg Chemicals Limited's business, financial condition, and operational results, highlighting the need for effective management and oversight of subsidiary operations.
Lack of Trademark Registration: The absence of trademark registration for the company's logo poses a potential risk to its intellectual property rights. Failure to protect intellectual property adequately could expose Jg Chemicals Limited to the risk of infringement and unauthorized use, negatively impacting its business, financial condition, and operational results.
Competitive Industry Landscape: Operating in a competitive industry, Jg Chemicals Limited faces the risk of reduced market share or operating margins if unable to compete effectively. To mitigate this risk, the company must continuously assess market dynamics, innovate, and differentiate its offerings to maintain a competitive edge.
Heavy Dependence on Rubber and Tyre Industry: The company's heavy reliance on the rubber and tyre industry without sufficient diversification across other application industries exposes it to sector-specific risks. Any adverse developments or fluctuations within the rubber and tyre sector could significantly impact Jg Chemicals Limited's business operations and financial performance.
Leasehold Basis for Manufacturing Facilities: Utilizing part of its manufacturing facility and registered office premises on a leasehold basis subjects Jg Chemicals Limited to potential risks associated with lease renewal. Failure to renew leasehold rights could disrupt operations and adversely affect the company's business, financial condition, and operational results, underscoring the importance of proactive lease management strategies.
Kfin Technologies Limited
Phone: 04067162222, 04079611000
Email: jgchemicals.ipo@kfintech.com
Website: https://kosmic.kfintech.com/ipostatus/