JG Chemicals IPO opens on March 5; check price band, lot size and other details

The initial public offering (IPO) by JG Chemicals will open for public bidding on Tuesday, March 5. The manufacturer of zinc oxide has fixed the price band in the range of Rs 210-221 apeice. Bid can be made in the lot size of 67 equity shares and its multiples thereafter. The issue will conclude on March 7, Thursday.

Incorporated in 1975, JG Chemicals produces more than 80 grades of zinc oxide. It has various industrial applications including ceramics, paints and coatings, pharma and cosmetics, electronics and batteries, agrochemicals, fertilisers, speciality chemicals, lubricants, oil & gas and animal feed.

The issue includes a fresh share of Rs 165 crore and an offer-for-sale (OFS) of up to 39 lakh equity shares by promoters Vision Projects & Finvest, Jayanti Commercial, Suresh Kumar Jhunjhunwala (HUF) and Anirudh Jhunjhunwala (HUF). The company is looking to raise a total of Rs 251.19 via the IPO route. Anchor book for the issue will open on Monday, March 4.

The net proceeds from the issue would be utilised towards funding long-term working capital requirements, investment in the material subsidiary- BDJ Oxides for repayment or pre-payment of certain borrowings availed by it, funding capital expenditure requirements; and general corporate purposes.

JG Chemicals operates three manufacturing facilities: Two in Jangalpur and Belur, both in Kolkata, West Bengal and one in Naidupeta (Nellore), Andhra Pradesh. Naidupeta is the largest facility, which is owned and operated by the material subsidiary. The company serves 200 local and 50 international clients in more than 10 countries.

JG Chemicals has reserved 50 per cent of the net offer for qualified institutional investors (QIBs), while non-institutional investors (NIIs) will have 15 per cent of shares reserved for them. The quota for retail investors is fixed at 35 per cent.

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

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