JG Chemicals IPO Subscribed 28.52x On The Last Day of Subscription

JG Chemicals IPO was opened for subscription on March 5, 2024, and closed on March 07, 2024. The IPO is a book-built issue of ₹251.19 crores. The JG Chemical Ltd IPO is a combination of a fresh issue of 0.75 crore shares worth ₹165.00 crore and an offer for sale of 0.39 crore shares aggregating to ₹86.19 crore. The price band of the IPO was set at ₹210 to ₹221 per share.

The company offered 1,13,66,064 shares, out of which 22,73,214 (20.00%) to QIB, 17,04,910 (15.00%) to NII, 39,78,122 (35.00%) to RII and 34,09,818 (30.00%) to Anchor investors. 59,374 RIIs will receive a minimum of 67 shares, and 605 Small High Net Worth Investors (sNII) and 1,211 Big High Net Worth Investors (bNII) will receive a minimum of 938 shares.

About JG Chemicals Ltd

Founded in 1975, JG Chemicals Ltd is one of the leading zinc oxide manufacturers in India in terms of production and revenue for zinc oxide manufacturing via the French process, which is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in the Americas, Europe and Asia.

As of March 2022, the company enjoys a market share of ~30%. JG Chemical sells over 80 grades of zinc oxide and is among the top ten manufacturers of zinc oxides globally. The company operates three manufacturing facilities in Jangalpur and Belur, both in Kolkata, West Bengal and Naidupeta in Nellore District, Andhra Pradesh.

Day Wise Subscription

• On the 1st day of subscription, i.e. March 05, 2024, the IPO was subscribed 2.58x in total. QIB’s subscribed 0.02x, NIIs 3.03x, while retail investors subscribed 3.85x.
• On the 2nd day of subscription, i.e. March 06, 2024, JG Chemicals witnessed a growth in subscription to 6.64x in total. This comprised QIB’s subscription of 0.46x, NIIs 10.00x, and retail 8.73x.
• On the 3rd day of subscription, i.e. March 07, 2024, the IPO was subscribed to 28.52x in total. This comprised QIB’s subscription of 32.33x, NIIs 47.92x, and retail investors subscribed to 18.03x.

Allocation to Anchor Investors

JG Chemical IPO GMP

Currently, the grey market premium of JG Chemicals IPO is 25. This reflects that the shares of JG Chemicals were trading at a premium of ₹25 in the grey market, as per various media reports.

Taking into account the upper band of the IPO price range and the existing premium in the secondary market, the share of JG Chemicals shares are expected to list at ₹246 per share, indicating an 11.31% increase over the IPO price of ₹221.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.