J.G.Chemicals Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹221
Per ShareLot Size
67 Shares
Minimum Investment
₹14,807
Issue Size
₹251.19 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
J.G.Chemicals Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
37.71%
Issue Type
Book Building
ISIN
INE0MB501011
About the Company
J.G.Chemicals Limited is India's largest zinc oxide manufacturer in terms of production and revenue for zinc oxide manufacturing through French process, which is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in Americas, Europe and Asia. The Company sells over 80 grades of zinc oxide and is among the top ten manufacturers of zinc oxides globally.
Industry Overview
India ranked sixth in terms of global chemical sales with a contribution of USD 105 billion and accounted for a share of 2.7% during the year. In terms of volume, the zinc oxide production in India has been around 100 - 115 thousand tonnes in the past 5 years from Fiscal 2018 to 2022. During this period, the Indian zinc oxide market size is estimated at around Rs. 18,000 million to around Rs. 20,000 million. The Indian zinc oxide industry includes limited organized players, who constitute a major portion of the market due to high entry barriers for any new entrant.
Company History
J.G.Chemicals Limited was initially formed as a partnership firm on March 15, 1975 under the name "J.G.Chemicals" at West Bengal as a partnership at will which was registered under the Indian Partnership Act, 1932 with the Registrar of Firms, West Bengal in 1983. Subsequently, the partnership firm was converted into a joint stock company and was registered as a private limited company in the name and style "J.G.Chemicals Private Limited" pursuant to a certificate of incorporation dated June 28, 2001, issued by RoC, in accordance with provisions of the Companies Act, 1956. Thereafter, pursuant to a resolution passed at the meeting of the Board of Directors held on March 16, 2022, and a special resolution of the Shareholders at the EGM held on April 30, 2022, the name of the Company was changed to J.G.Chemicals Limited, pursuant to its conversion into a public limited company. A fresh certificate of incorporation dated May 24, 2022, consequent upon conversion, was issued by the RoC.
Products & Services
- J.G.Chemicals Limited is India's largest zinc oxide manufacturer.
Growth Strategy
- Expand its production capacities and broadening the footprint of manufacturing operations.
- Further diversify our product offerings and enter new verticals.
- Zinc Sulphate.
- Pharmaceutical Grade Zinc Oxide.
- Specialized Zinc Oxide/Activated Zinc Oxide (Zinc Carbonate).
- Zinc based agri-chemicals and nutrients.
- Deep mining of existing customers and continued focus to expand customer base.
- Increasing focus on R&D to support complex chemistries, product innovation and cost efficiencies.
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY23 to FY25.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 1,13,66,063^ equity shares of face value of Rs. 10 each ("Equity Shares") of J.G.Chemicals Limited ("Company" or "Issuer") for cash at a price of Rs. 221 per equity share (including a share premium of Rs. 211 per equity share) ("Offer Price") aggregating to Rs. 251.19 crores^ ("Offer") comprising a fresh issue of 74,66,063^ equity shares aggregating to Rs. 165.00 crores^ by the company (the "Fresh Issue") and an offer for sale of 3,900,000^ equity shares aggregating to Rs. 86.19 crores^ by the selling shareholders ("Offer for Sale") comprising 2,028,900^ equity shares aggregating to Rs. 44.84 crores^ by Vision Projects & Finvest Private Limited, 1,100^ equity shares aggregating to Rs. 0.02 crores^ by Jayanti Commercial Limited, 1,260,000^ equity shares aggregating to Rs. 27.85 crores^ by Suresh Kumar Jhunjhunwala (HUF), and 610,000^ equity shares aggregating to Rs. 13.48 crores^ by Anirudh Jhunjhunwala (HUF) (collectively, the "Selling Shareholders" and such equity shares, the "Offered Shares"). The offer shall constitute 29.01% of the post-offer paid-up equity share capital of the company. The face value of the equity shares is Rs. 10 each. the offer price is 22.10 times the face value of the equity shares. ^Subject to finalisation of basis of allotment
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- 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.
- Its business is almost completely dependent on the sale of one principal product i.e. zinc oxide (in various grades) and any reduction in the demand of the same may have an adverse effect on its business and financial performance.
- The company is significantly dependent on the business operations of its material subsidiary i.e. BDJ Oxides Private Limited and any deterioration in the performance of its material subsidiary may adversely affect the company's business, financial condition and results of operations.
- The company derives a significant part of its revenue from select customers. If one or more of such customers choose not to source their requirements from it, its business, financial condition and results of operations may be adversely affected.
- The company's logo is not registered as a trademark. If the company is unable to protect its intellectual property rights, its business, financial condition and results of operations may be adversely affected.
- The company operates in a competitive industry. Any inability to compete effectively may lead to a lower market share or reduced operating margins.