JG Chemicals disappoints at D-St debut; stock lists at 5% discount

Shares of JG Chemicals Ltd made a disappointing debut at Dalal Street on Wednesday as the stock was listed at Rs 209, a discount of 5.43 per cent, over its issue price of Rs 221 apiece on the NSE. Similarly, the stock kicked-off its maiden trading session at BSE with a discount of 4.52 per cent at Rs 211 over the same issue price.

The listing has been on the less-than-expected note. Ahead of its listing, shares of JG Chemicals were commanding a grey market premium of only Rs 15, suggesting a listing pop of about 7 per cent to the investors. However, the grey market premium has halved in the last 24 hours after dull listings of recent issues.

JG Chemicals sold its IPO in the price band of Rs 210-221 per share with a lot size of 67 equity shares. The Kolkata-based zinc oxide player raised Rs 251.19 crore through its primary stake sale, which included a fresh share sale of up to Rs 165 crore and an offer-for-sale (OFS) of up to 39,00,000 shares.

JG Chemicals had received a decent response for its IPO during the three-day bidding process, fetching an overall subscription of 27.78 times. The quota for non-institutional bidders was subscribed 46.33 times while the allocation for qualified institutional bidders was booked 32.09 times. The portion reserved for retail investors was subscribed 17.44 times.

JG Chemicals was incorporated in 1975 and it produces more than 80 grades of zinc oxide in India. Its products have various industrial applications including ceramics, paints and coatings, pharma and cosmetics, electronics and batteries, agrochemicals, fertilisers, speciality chemicals, lubricants, oil & gas and animal feed among others.
 

Global Financial Services, Centrum Capital and Keynote Financial Services are the book running lead managers of the JG Chemicals IPO, while Kfin Technologies is the registrar for the issue.