Bidding Dates
To be announced
Minimum Investment
To be announced
Price Range
To be announced
Maximum Investment
To be announced
Retail Discount
To be announced
Issue Size
₹252 crore
Investor category and sub category
To be announced
About J.G.Chemicals Ltd. IPO
J.G Chemicals is the largest Indian zinc oxide manufacturer regarding production and revenue. In FY22, the company had a 30% market size by selling over 80 grades of zinc oxide.
The company manufactures zinc oxide following the globally accepted French process and sells its products to over 10 countries.
J.G Chemicals ranks among the top 10 global zinc oxide producers. In the last three years, it has sold its products to 200+ domestic and 50+ global customers.
Zinc oxide is a critical component in type manufacturing, and J.G Chemicals supplies to 9 out of the top 10 global tyre manufacturers and 11 top Indian tyre manufacturers. Besides, zinc oxide is also used in pharmaceuticals, chemicals, and agricultural sectors.
BDJ Oxides, which is a material subsidiary of J.G Chemicals, is the only zinc oxide manufacturer in India to have IATF certification preferred by tyre companies.
J.G Chemicals Ltd. has 3 manufacturing facilities with a total installed capacity of 77,040 MTPA.
J.G.Chemicals Ltd. IPO Details
J.G.Chemicals Ltd. will raise Rs. 252 crore in IPO from the market. The issue is a combination of fresh shares and offers for sale (OFS) equities from existing shareholders. The details regarding dates, issue size, or price band are yet to be announced.
J.G.Chemicals Ltd. IPO Objectives
The company intends to utilise the net proceeds from the fresh issues for the following purposes.
- For repayment and prepayment of certain market borrowings
- To meet capital expenditure requirements for establishing a research and development centre.
- To meet capital expenditure requirements.
Should you invest in J.G.Chemicals Ltd.?
Here are the top reasons to consider before investing in J.G.Chemicals Ltd. IPO.
- The company is one of the top 10 zinc oxide manufacturers in terms of production and revenue with a 30% market share.
- As the largest Indian manufacturer of zinc oxide, J.G. Chemicals caters to 200+ domestic and 50+ global customers.
- It has robust financial and operational track records.
- It is one of the organised players in the highly fragmented Indian zinc oxide market, estimated to be around ₹ 20,000 million in FY22.
Competitive Peers
There are no listed companies in India engaged in the business line of the company.
J.G.Chemicals Ltd. Noteworthy highlights
- The rubber and tyre manufacturing industry is one of the primary consumers of the company, contributing 89.66% of the revenue from operation in the period ending on September 30, 2022.
- J.G. Chemicals managed growth of 12.10% CAGR in the last five fiscals.
IPO Financials
| Particulars | Period ending on September 30, 2022 | Year ending on March 31, 2022 | Year ending on March 31, 2021 |
|---|---|---|---|
| Revenue from Operations | 4,250.72 | 6,128.30 | 4,352.98 |
| Profit After Tax (PAT) | 357.13 | 431.26 | 287.99 |
| PAT Margin | 8.40% | 7.04% | 6.62% |
| EBITDA | 523.14 | 663.78 | 486.07 |
| EBITDA Margin | 12.31% | 10.83% | 11.17% |
| EPS (Basic) | 10.93 | 12.61 | 7.39 |
| ROE | 20.40% | 30.64% | 24.23% |
Know before investing
Strengths
3
A well-diversified customer base and customer-focused marketing strategy have helped the company become one of the top global players.
Zinc oxide is a critical raw material for several industries, including tyre manufacturing, pharmaceuticals, chemicals, and agriculture.
A high entry barrier allows the existing players larger shares of the market.
Risks
3
A significant part of the revenue comes from selected customers.
The company depends primarily on the performance of the rubber industry to earn revenue.
The company doesn’t enter into long-term agreements with its suppliers. Hence, its production depends on the availability of raw materials.
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The total issue size of J.G.Chemicals Ltd. Ltd. IPO is Rs. 252 crore.
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Retail investors can apply for a minimum of one lot.
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