IPO Details

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
  1. A well-diversified customer base and customer-focused marketing strategy have helped the company become one of the top global players.

  2. Zinc oxide is a critical raw material for several industries, including tyre manufacturing, pharmaceuticals, chemicals, and agriculture.

  3. A high entry barrier allows the existing players larger shares of the market.

Risks

3
  1. A significant part of the revenue comes from selected customers.

  2. The company depends primarily on the performance of the rubber industry to earn revenue.

  3. The company doesn’t enter into long-term agreements with its suppliers. Hence, its production depends on the availability of raw materials.

  • How to Apply in IPO
  • How to Check IPO Allotment Status

Login to Angel One App / Website & click on IPO

Select desired IPO & tap on "Apply"

Enter UPI ID, set quantity/price & submit

Accept mandate on the UPI app to complete the process

Login to Angel One App / Website

Choose IPO section on Home Page

Click IPO Orders

Chose the IPO application you want to view the status for

J G Chemicals IPO FAQs

What is J.G.Chemicals Ltd. IPO?

The total issue size of J.G.Chemicals Ltd. Ltd. IPO is Rs. 252 crore.

When will the J.G.Chemicals Ltd. IPO allotment available?

Will be updated soon.

What will be the J.G.Chemicals Ltd. IPO lot size?

Will be updated soon.

When will J.G.Chemicals Ltd. IPO open for subscription?

Will be updated soon.

What minimum lot size can retail investors subscribe to?

Retail investors can apply for a minimum of one lot.

When will J.G.Chemicals Ltd. list on exchanges?

Will be updated soon.

How to check the allotment status of the J.G.Chemicals Ltd. IPO?

Login to the Angel One app and enter OTP sent on your registered mobile number to validate. 

To check the allotment status, enter your application number, DP ID, and PAN number into the app.

What would be the listing gains on the J.G.Chemicals Ltd. IPO?

Listing gains cannot be calculated before the listing of the IPO on the stock exchange.

I have finished the application process for J.G.Chemicals Ltd. IPO, but the funds are not yet debited. What is the reason?

At the first step, the bank only blocks the amount in your account. The money will be debited when the shares are allotted or unblock the amount after the UPI mandate expiry date.

How to approve the UPI mandate request for J.G.Chemicals Ltd. IPO?

Login to your UPI handle to approve the payment mandate and complete the IPO application process.

Can I submit more than one application for the public issue of J.G.Chemicals Ltd. using one PAN?

You are allowed to submit only one application using one PAN card.

What is the minimum order quantity for J.G.Chemicals Ltd. IPO?

Will be updated soon.