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Jesons Industries Files DRHP for IPO

05 August 20225 mins read by Angel One
Jesons Industries Files DRHP for IPO
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Jesons Industries has filed its draft prospectus with SEBI (Securities and Exchange Board of India). The company is a stalwart manufacturer of adhesives and coatings. It proposes to raise Rs. 800-900 crores from the IPO. Find out the comprehensive details below.

Key Highlights of the Jesons Industries proposed IPO

  • The IPO will have two aspects: the new issue of equity shares and an Offer of Sale (OFS).
  • There will be a new issuance of shares of up to Rs. 120 crores.
  • Moreover, promoter Dhiresh Shashikant Gosalia will divest more than 1.21 crore equity shares.
  • Additionally, there will also be a reservation of these shares for the employees of Jesons Industries. Up to 77,000 equity shares will be set apart for them.
  • However, this company may consider a pre-IPO placement offer of Rs. 24 crores. Depending on the outcome of this issue, the IPO value will be decreased or increased.
  • Jesons Industries objective in heading for the IPO route is to clear past debts and for general corporate needs.

About the Company

Jesons Industries was established in 1999 and has since made a name for itself in the SCE (speciality coating emulsions)  and PSA (pressure-sensitive adhesives) categories.

With a wide range of products, the company presently has a 30% market share as a leading speciality coating emulsions manufacturer in the domestic markets.

The clients of this company include:

  • Berger Paints
  • Cellotape
  • Cosmos Twisters
  • Indigo Paints
  • JSW Paints
  • Kamdhenu Paints
  • Mexim Adhesives
  • Nippon Paints
  • Sarvodaya Industries
  • Shalimar Paints
  • SMI Coated Products
  • Storm Infracon

Some of the global clients of Jesons Industries include:

  • Apollo Paints
  • Caparol Paints
  • Kansai Nerolac
  • Lalan Printing and Packaging
  • Moon Star Paints
  • Tuftape
  • Well Accessories
  • Western Paper Industries

Apart from paints, this company also produces many other chemicals for industries such as:

  • Construction
  • Textiles
  • Leather
  • Paper
  • Carpet

Financials of Jesons Industries (in INR crores):

Listed below are the financials of Jesons Industries. The company witnessed a 20.7% jump in revenue in FY 2021.

  FY2019 in Rs. crores FY2020 in Rs. crores FY2021 in Rs. crores
Revenue 923.7 908.7 1,096.5
Expenses 886.4 870.0 970.5
Net Income 24.8 29.6 92.9
Margin (%) 2.7 3.3 8.5

Bottom Line

Jesons Industries is one of the largest exporters of vinyl acetate and acrylic polymers. Moreover, the company also has a strong entry in important markets such as Asia-Pacific, Africa and the Middle East.

It contributed around 52.9% and 36.1% to India’s total export of vinyl acetate and acrylic polymers, respectively. In case you are keen to subscribe to this IPO, do so only after thorough research and analysis on the strengths and benefits of the company.


Frequently Asked Questions

  1. Who is the book running lead managers to the IPO issue?

Ans. Axis Capital and JM Financials are the book running lead managers to the IPO issue.

  1. Who are the promoters of the company?

Ans. You should note that Jesons Industries is a 100% promoter-owned company. The promoters are:

  • Dhiresh Shashikant Gosalia holds an 86.53 per cent stake in Jesons Industries
  • Madhavi Dhiresh Gosalia
  • Ravina Gaurav Shah
  • Jhelum Dhiresh Gosalia
  1. Who are the competitors to Jesons Industries?

Ans. The competitors of Jesons Industries are Vinati Organics, Fine Organic Industries, Galaxy Surfactants, and others.


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