JG Chemicals IPO

JG Chemicals Limited

₹14,070 /67 sharesMinimum Investment

JG Chemicals IPO Listing Details

Listed OnIssue PriceListing PriceListing Gains
BSE & NSE₹221.00₹209.00-₹12.00 (5.43%)

JG Chemicals IPO Details

Bidding DatesMin. InvestmentLot SizePrice Range
5 Mar ‘24 - 7 Mar ‘24₹14,07067₹210 - ₹221
Issue SizeIPO Doc
251.19Cr
RHP PDF

Subscription Status As on Invalid Date

  • Qualified Institutional Buyers
    32.09x
  • Non-Institutional Investor
    41.80x
  • Retail Individual Investor
    17.43x
  • Total
    27.78x

About JG Chemicals

JG Chemicals Limited is a zinc oxide manufacturer that offers over 80 grades of zinc oxide in India and international markets. The company was started in 1975, and today its product range is used across industrial applications, including rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, speciality chemicals, lubricants, oil & gas and animal feed. As of December 31, 2023, the company's aggregate installed capacity of 77,040 MTPA is distributed among three manufacturing facilities situated in (i) Jangalpur (Kolkata, West Bengal), (ii) Belur (Kolkata, West Bengal), and (iii) Naidupeta (Nellore District, Andhra Pradesh). All the manufacturing facilities of the company have been accredited with ISO 9001:2015, ISO 45001:2018 and ISO 14001:2015.;
Parent Organisation
JG Chemicals Limited
Founded
1975
Managing Director
Mr. Anirudh Jhunjhunwala

Strengths & Risks

  • The company has an installed capacity of 59,904 MTPA for zinc oxide, 7,056 MTPA for zinc ingots, and 10,080 MTPA for zinc sulphate and allied chemicals. The Naidupeta Facility has recently enhanced its capacity by 13,440 MTPA for zinc oxide and 10,080 MTPA for zinc sulphate and allied chemicals.
  • The company offers over 80 grades of zinc oxide used in different end-use industries.
  • The company reported revenue from operations of Rs. 435.30 cr, Rs. 612.83 cr and Rs. 784.58 cr in FY 2021, 2022 and 2023 respectively.
  • As per the company, in the last three Fiscals, it served over 250 customers, of which around 90% customers were repeat customers.
  • The company uses French process to manufacture various grades of zinc oxide. According to the company, it employs modern pulse jet bag filters and combustion systems for higher productivity, low energy consumption, and compliance with emission norms.
  • The company's business is highly reliant on the sale of zinc oxide (in various grades), constituting 99.03%, 98.75%, 98.30%, and 98.54% of total income for the nine months ending December 31, 2023, and Fiscals 2023, 2022, and 2021, respectively. Any reduction in the demand for zinc oxide may adversely impact the company's business and financial performance.
  • The company is significantly dependent on the business operations of its material subsidiary i.e. BDJ Oxides Private Limited. Any deterioration in the performance of its material subsidiary may adversely affect its business, financial condition and results of operations.
  • The company derives a significant part of its revenue from select customers. Its top 10 customers contributed Rs. 374.57 cr, Rs. 596.98 cr, Rs. 463.5 cr, and Rs. 333.72 cr, accounting for 77.02%, 76.09%, 75.63%, and 76.67% of its revenue from operations during the nine months ended December 31, 2023, Fiscal 2023, Fiscal 2022, and Fiscal 2021, respectively.
  • The company relies significantly on procuring raw materials from overseas suppliers. It does not have long-term agreements with such suppliers. Any increase in the cost of or shortage in the availability of these raw materials may adversely impact the company's business and operational results.
  • The company, along with its subsidiary and certain directors, faces pending litigations. Adverse decisions in these proceedings may result in liabilities, penalties, and adverse effects on the company's business, operational results, and financial condition.
  • The company is subject to stringent quality requirements, regular inspections, and audits, with the sales of its product dependent on rigorous quality control and standards. Non-compliance with these standards could adversely impact business prospects and financial performance, potentially leading to the cancellation of existing and future orders.

Financials

*All values are in Rs. Cr
No Graph Data To Display

Application details

Apply asPrice bandApply upto
Regular210 - 221₹2 Lakh
High Networth Individual210 - 221₹2 - 5 Lakh
For JG Chemicals IPO, eligible investors can apply as Regular.
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