JC Chemicals Limited is a zinc oxide manufacturing company using the French process. The company produces more than 80 grades of zinc oxide and is among the top ten manufacturers of zinc oxides globally.
This product has various industrial applications such as ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics and batteries, agrochemicals and fertilizers, speciality chemicals, lubricants, oil and gas, and animal feed.
Over the last three years, the company has sold its product to over 200 domestic customers and over 50 global customers in more than 10
countries.
The company operates three manufacturing facilities in Jangalpur and Belur, both in Kolkata, West Bengal and Naidupeta in Nellore District, Andhra Pradesh. Naidupeta is the largest facility, owned and operated by the Material Subsidiary.
All company manufacturing facilities are ISO 45001:2018 and ISO 14001:2015 certified and ISO 9001:2015 accredited.
As of October 31, 2022, the company had 105 permanent employees, over 100 laborers, and trainees.
JG Chemicals IPO – Details
| IPO Opening Date | 05 March 2024 |
| IPO Closing Date | 07 March 2024 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 1,13,66,063 Shares Worth ₹251.19 Crore Fresh Issue: 74,66,063 Shares Worth ₹165.00 Crore Offer For Sale: 39,00,000 Shares Worth ₹86.19 Crore |
| Face Value | ₹10 per equity share |
| IPO Price | ₹210 – ₹221 |
| Market Lot | 67 Shares |
| Min Order | 67 Shares (1 Lot) |
| Listing At | BSE, NSE |
| Register | Kfin Technologies Limited |
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
JG Chemicals IPO – Date Schedule
| IPO Open Date | 05 March 2024 |
| IPO Close Date | 07 March 2024 |
| Basis of Allotment Date | 11 March 2024 |
| Initiation of Refund | 12 March 2024 |
| Credit of Shares to Demat Account | 12 March 2024 |
| IPO Listing Date | 13 March 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 07 March 2024 |
JG Chemicals IPO – Lots Size & Price
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 67 | ₹14,807 |
| Retail (Max) | 13 | 871 | ₹1,92,491 |
| S-HNI (Min) | 14 | 938 | ₹2,07,298 |
| S-HNI (Max) | 67 | 4,489 | ₹9,92,069 |
| B-HNI (Min) | 68 | 4,556 | ₹10,06,876 |
Competitive Strengths
- Leading market position with a diversified customer base, being supplier to 9 out of top 10 global tyre manufacturers and to all of the top 11 Indian tyre manufacturers;
- High entry barriers in key end-use industries;
- Strong and consistent financial performance with growth of revenue from operations and profit after tax growth at a CAGR 34.2825% and 40.43%, respectively, from FY21 to FY23;
- Long-term relationships with customers and suppliers & having robust supply chain with more than 250 customers in last 3 years;
- Experienced and dedicated management team; and
- Focus on long term sustainability with environmental initiatives and safety standards.
Company Promoters
- Suresh Jhunjhunwala
- Anirudh Jhunjhunwala
- Anuj Jhunjhunwala
Company Financials (Restated Consolidated)
| Particulars | Total Revenue | Total Expense | Profit After Tax | Total Borrowing |
|---|---|---|---|---|
| 31 March 2021 | 440.40 | 399.20 | 28.79 | – |
| 31 March 2022 | 623.04 | 565.60 | 43.12 | – |
| 31 March 2023 | 794.18 | 717.49 | 56.79 | – |
| 31 December 2023 | 491.09 | 464.34 | 18.51 | – |
Key Performance Indicator
| KPI | Values |
|---|---|
| ROE | 8.20% |
| ROCE | 11.86 % |
| Debt/Equity | 0.11 |
| RoNW | 8.16% |
| P/BV | 3.51 |
| PAT Margin (%) | 7.24 |
| Pre IPO | Post IPO | |
| EPS (Rs) | 13.6 | 11.01 |
| P/E (x) | 16.25 | 20.08 |
Object Of The Issue
- Investment in the Material Subsidiary, viz. BDJ Oxides (i) repayment or pre-payment, in full or in part, of all or certain borrowings availed by the Material Subsidiary; (ii) funding capital expenditure requirements for setting up of a research and development centre situated in Naidupeta (“R&D Centre”); and (iii) funding its long-term working capital requirements.
- Funding long-term working capital requirements of the Company; and
- General corporate purposes.
JG Chemicals IPO Peer Comparison
| S. No. | Face Value | Company Name | PE |
| 1 | 2 | Rajratan Global Wire Limited | 33.43 |
| 2 | 10 | NOCIL Limited | 30.97 |
| 3 | 10 | Yasho Industries Limited | 30.03 |
JG Chemicals IPO Promoter Holding
| Pre Issue Share Holding | 100.00% |
| Post Issue Share Holding | 70.99% |
JG Chemicals IPO Prospectus
Company Contact Information
| JG Chemicals Limited 34A, Metcalfe Street, Kolkata – 700 013 Phone: +91 33 4014 0100 Email: corporate@jgchem.com Website: https://jgchem.com/ |
JG Chemicals IPO Registrar
| Kfin Technologies Limited Phone: 04067162222, 04079611000 Email: jgchemicals.ipo@kfintech.com Website: https://kosmic.kfintech.com/ipostatus/ |
JG Chemicals IPO Lead Manager(s)
| 1. Keynote Financial Services Limited 2. Emkay Global Financial Services Limited 3. Centrum Capital Limited |
JG Chemicals IPO FAQs
| What is JG Chemicals IPO? JG Chemicals IPO is a main-board IPO. The issue is priced at ₹210 to ₹211 per equity share. The IPO is to be listed on BSE & NSE. |
| When JG Chemicals IPO will open? The IPO is to open on 05 March 2024 for QIB, NII, and Retail Investors. |
| What is JG Chemicals IPO Investors Portion? The investors’ portion for QIB – 50%, NII – 15%, and Retail – 35%. |
| How to Apply the JG Chemicals IPO? You can apply JG Chemicals IPO via ASBA online via your bank account. You can also apply for ASBA online via UPI through your stock brokers. You can also apply via your stock brokers by filling up the offline form. |
| How to Apply the JG Chemicals IPO through Angle One? Log in to Angle One Application with your credentials. Select the IPO. You will see the IPO Name “JG Chemicals”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Angle One. |
| How to Apply the JG Chemicals IPO through 5 Paisa? Log in to 5 Paisa Application with your credentials. Select the IPO. You will see the IPO Name “JG Chemicals“. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with 5 Paisa. |
| How to Apply the JG Chemicals IPO through Upstox? Log in to Upstox Application with your credentials. Select the IPO. You will see the IPO Name “JG Chemicals”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with Upstox. |
| How to Apply the JG Chemicals IPO through IIFL? Log in to IIFL Application with your credentials. Select the IPO. You will see the IPO Name “JG Chemicals”. Click on Bid Button. Confirm your Application. Now go to your UPI App on Net Banking or BHIM App to Approve the mandate. Open Demat Account with IIFL. |
| What is JG Chemicals IPO Size? JG Chemicals IPO size is ₹251.19 Crore. |
| What is JG Chemicals IPO Price Band? JG Chemicals IPO Price Band is ₹210 to ₹211. |
| What is JG Chemicals IPO Minimum and Maximum Lot Size? The minimum bid is 67 Shares with ₹14,807 amount while the maximum bid is 871 Shares with ₹1,92,491. |
| What is the JG Chemicals IPO Allotment Date? JG Chemicals IPO allotment date is 11 March 2024. |
| What is the JG Chemicals IPO Listing Date? JG Chemicals IPO listing date is 13 March 2024. The IPO is to list on BSE and NSE. |
