JG Chemicals IPO last bidding day today: Check GMP, subscription status, review, key dates, more. Should you subscribe?


On Tuesday, March 5th, JG Chemicals went public for subscription and the last day to apply for the issue is today (Thursday, March 7) for those interested in subscription. The issue has received enthusiastic responses both from institutional and retail investors in the two days that it has been available for subscription. The second day IPO subscription status of JG Chemicals stood at 6.40 times as per BSE data. The retail investors portion was subscribed to 8.32 times, Non Institutional Investors (NII) portion was booked 9.64 times, and Qualified Institutional Buyers (QIB) portion was booked at 45 %. On day 1, JG Chemicals IPO subscription status was 2.47 times.

It has reserved at least half of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 % for non-institutional Institutional Investors (NII), as well as not less than 35 % of the offer is reserved for retail investors.

JG Chemicals IPO price band has been set in the range of’ 210 to’ 221 per equity share of the face value of’ 10. The minimum bid by investors is 67 equity shares, followed by multiples of 67 shares thereafter. JG Chemicals raised’ 75.35 crore from anchor investors on Monday, March 4.

In terms of both output and income, JG Chemicals is India’s largest manufacturer of zinc oxide, according to the Red Herring Prospectus (RHP).

The company ranks among the top 10 zinc oxide producers globally and supplies over 80 grades of the metal.

The RHP lists the company as a peer along with the likes of Rajratan Global Wire Ltd (P / E 33.43), NOCIL Ltd (P / E 30.97), Yasho Industries Ltd (P / E 30.03 Yasho and) Industries (P / E 30.03).

IPO subscription status of JG Chemicals:
On its final day, investors continued to give overwhelming responses to the issue. Non-institutional investors stole the show, followed by retail investors and qualified institutional buyers chipping in on the final day as per the usual trend. The overall subscription status was 27.78 times, as per BSE data.

The retail investors portion has been subscribed 17.44 times, Non Institutional Investors (NII) portion is booked 46.33 times, and Qualified Institutional Buyers (QIB) portion is booked 32.09 times, on the last day.

JG Chemicals IPO details
The IPO of JG Chemicals, valued at 251.19 crore, consists of a fresh issuance of 165 crore and an OFS of up to 3,900,000.00 equity shares of face value R10 each, totalling 86.19 cr, each by promoters and investors.

Vision Projects one and1 Finvest Private Ltd, Jayanti Commercial Limited, Suresh Kumar Jhaunjhunwalla (HUF), Anirudh Jhaunjhunwalla (HUF), and Anirudh Jain (HUF) are some of the selling shareholders that are disposing of as much as 6,10,000 equity shares and 2,028,900 shares.

The company intends to utilize the net proceeds for the following functions : investing in the Material Subsidiary, BDJ Oxides; The Material Subsidiary must repay or prepay certain borrowings or all of them; ii) funding the capital expenditures required to set up a research and development center at Naidupeta. iii) securing financing for the company’s ongoing working capital requirements.

The book running lead managers of the JG Chemicals IPO are Centrum Capital Limited, Emkay Global Financial Services Ltd, and Keynote Financial Services Ltd. Kfin Technologies Limited acts as the registrar for the offering.

JG Chemicals IPO GMP today
JG Chemicals IPO grey market premium is +25. Investorgain.com reported that JG Chemicals shares were trading at a 25 premium in the grey market.

Given the high end of IPO price band and current premium in grey market, JG Chemicals estimated listing price was 246 per share, 11.31 % more than IPO price of221.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

JG Chemicals IPO Review
Dilip Davda
“The company is India’s largest zinc oxide manufacturer serving to almost all top tyre manufacturing companies globally. After posting growth in its top and bottom lines for FY21 to FY23, it marked degrowth for 9M-FY24 on account of drastic fall in zinc oxide prices globally. As the reversal in trends are witnessed, the company will be back on track soon. Though based on FY24 annualized earnings, the issue appears fully priced, it is worth considering for the medium to long term rewards,” said Dilip Davda, the contributing editor at Chittorgarh.

Hem Securities
The brokerage claims that the company is bringing the offering at a price range of’ 210-221 per share, with a P/E multiple of 35x based on H1FY24 PAT. With a diverse client base that includes all 11 Indian tyre manufacturers and nine out of the top ten worldwide tyre manufacturers, the company enjoys a leading market position.

Important end-use sectors have high entry barriers. The company’s sales and profit after tax grew at a CAGR of 34.2825 % and 40.43 %, respectively, from FY21 to FY23, demonstrating strong and steady financial achievement.

“Also, company has long-term relationships with customers and suppliers 1and1 having robust supply chain with more than 250 customers in last 3 years. Company has Experienced and dedicated management team; focuses on long term sustainability through environmental initiatives and safety standards. Hence,looking after all above we recommend “Subscribe” on issue,” the brokerage said.

This is a disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. Before making any investment decision, we advise purchasers to consult certified experts.

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