The ₹251.2-crore initial public offer (IPO) of JG Chemicals will hit the Street today. The IPO of zinc oxide manufacturer comes out with a price band of ₹210-221 and will close on March 7.
The IPO comprises a fresh issue of shares worth up to ₹165 crore and an offer-for-sale (OFS) of 39 lakh equity shares aggregating to ₹86.2 crore. As part of the OFS, Vision Projects & Finvest Pvt Ltd, Suresh Kumar Jhunjhunwala (HUF), Anirudh Jhunjhunwala (HUF) and Jayanti Commercial Ltd will offload their equity shares.
Investors can bid for a minimum of 67 shares. Up to 50 per cent of the issue has been reserved for qualified institutional buyers, 15 per cent for non-institutional investors and the remaining 35 per cent for retail investors.
JG Chemicals on Monday (as part of IPO exercise) has raised over ₹75.36 crore from anchor investors. The company has allotted 34.09 lakh shares to four funds at ₹221 apiece. Massachusetts Institute of Technology, Carnelian Structural Fund, Pinebridge Global Funds and SBI General Insurance Company were among the anchor investors.
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Proceeds from the fresh issue to the tune of ₹91 crore will be utilised for investing in JG Chemicals’ material subsidiary BDJ Oxides and ₹35 crore will be used for funding the long-term working capital requirements of the company and for general corporate purposes.
The equity shares of the company are proposed to be listed on both BSE and NSE
The Kolkata-based firm is India’s largest zinc oxide manufacturer in terms of production and revenue. It sells over 80 grades of zinc oxide and is among the top ten manufacturers of zinc oxides globally.
The tyre industry in India is the largest consumer of its product. The firm also supplies to leading paints manufacturers, footwear players and cosmetics players in the country.
Centrum Capital Ltd, Emkay Global Financial Services Ltd and Keynote Financial Services Ltd are the book-running lead managers to the issue.