JG Chemicals IPO - Review & Fundamental Analysis

JG Chemicals Limited IPO

JG Chemicals Limited’s IPO consists of a fresh issue of 74 lakh shares worth INR 165 crores and an offer to sell 39 lakh existing equity shares worth INR 86.19 crores. The company seeks funds to invest in a material subsidiary and to meet the working capital requirement. 

JG Chemicals IPO – Important Details

JG Chemicals  IPO DateMarch 5, 2024 to March 7, 2024
JG Chemicals  IPO Listing DateMarch 13, 2024
JG Chemicals  IPO PriceINR 210-221 per share
JG Chemicals  IPO Lot Size67 Shares
JG Chemicals  IPO Total Issue SizeINR 251.19 crores
JG Chemicals  IPO Basis of AllotmentMarch 11, 2024
JG Chemicals  IPO Initiation of RefundsMarch 12, 2024
JG Chemicals  IPO Credit of Shares to DematMarch 12, 2024
JG Chemicals  IPO Issue TypeBook Built Issue
JG Chemicals  IPO Listing AtBSE NSE

JG Chemicals  Limited IPO – Company Profile

The company is India’s largest zinc oxide manufacturer in terms of production and revenue for zinc oxide manufacturing through the French process, which is the dominant production technology and has been adopted by all the major producers in the Americas, Europe, and Asia. As of March 2022, the company’s market share is around 30%.

The company sells over 80 grades of zinc oxide and is among the top ten manufacturers of zinc oxides globally. The company owes to its legacy of four decades in the manufacturing industry. 

The company has built a long-standing relationship with customers across end-user industries in the tyres, ceramics, rubber, paints, cosmetics, and batteries industries. Over the last three years, the company has marketed and sold products to over 200 domestic customers and over 50 global customers in more than 10 countries. In India, tyre industry accounts for 70% of rubber consumption and the companies in the tyre industry are the largest consumers of JG Chemical’s products. 

JG Chemicals IPO  – Fundamental Analysis

JG Chemicals’ IPO financials reveal a trajectory of steady revenue growth, enhanced profitability, and solid financial health improvements, positioning it as an appealing investment in the chemical sector with strong growth potential and robust operational efficiency.

Revenue Growth:

The company has witnessed consistent revenue growth, from ₹4,352.98 million in FY2021 to ₹