₹ 14807 / 67 shares

IPO Details

RHP/DRHP

Issue Date

05 Mar - 7 Mar'24

Investment/lot

₹ 14807

Price Range

210 - 221

Lot Size

67

IPO Size

₹ 251.19 Cr

IPO Listing Details

Listing On

13 Mar'24

Issue Price

221

Listed Price

₹ 209

Retail Gain/Listing Gain

-5.43%

Start date

End date

Allotment of bids

Refund Initiation

Listing on exchange

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All you need to know about J.G.Chemicals Ltd IPO
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J.G.Chemicals is India’s largest zinc oxide manufacturer in production and revenue for zinc oxide manufacturing through the French process (Source: CARE Report).

The company sells over 80 grades of zinc oxide and is among the top ten manufacturers of zinc oxides globally, with products catering to a wide spectrum of industrial applications, including rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilisers, speciality chemicals, lubricants, oil & gas and animal feed (Source: CARE Report).

Leading market position with a diversified customer base

J.G.Chemicals is the largest manufacturer of zinc oxides in India and are among the top ten manufacturers of zinc oxides globally, with an installed capacity of 59,904 MTPA for zinc oxide, 7,056 MTPA for zinc ingots and 10,080 MTPA capacity for zinc sulphate and other allied chemicals. The company sells over 80 grades of zinc oxide, thereby enabling it to cater to a wide variety of customers, across various end-use industries.

High entry barriers in key end-use industries

Entry barriers in their end-use industries stem from unique factors. Their products, subject to high-quality standards and rigorous approval systems, face stringent impurity specifications. The customers, adhering to strict regulatory standards, may incur significant time and expense if they consider changing the product's vendor, acting as a deterrent.

Strong and consistent financial performance

The company has witnessed sustained growth across various financial indicators and consistently enhanced its balance sheet position. Over the last three fiscal periods, there has been a continuous increase in its net worth. Contributions from customers in the rubber industry amounted to Rs. 4,401.21 million, Rs. 7,097.27 million, Rs. 5,521.60 million, and Rs. 3,882.86 million, constituting 90.50%, 90.46%, 90.10%, and 89.20% of the revenue from operations for the nine months ending December 31, 2023, and Fiscals 2023, 2022, and 2021, respectively. From FY17 to FY21, the tyre industry experienced a growth rate of 0.32% (Source: CARE Report), while the company achieved a significantly higher volume growth at a CAGR of 13.32% during the same period.
  • The business is almost completely dependent on the sale of one principal product i.e. zinc oxide.

  • The company is significantly dependent on the business operations of its material subsidiary i.e. BDJ Oxides Private Limited.

  • A significant part of the revenue comes from select customers.

  • Expand production capacities and broaden the footprint of manufacturing operations.

  • Further diversify product offerings and enter new verticals.

  • Deep mining of existing customers and continued focus to expand customer base.

Here are the key financials for J.G.Chemicals Limited:

Particulars (in Rs. million)

Particulars (in Rs. million)

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Kotak Securities

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Opening of account will not guarantee allotment of shares in IPO. Investors are requested to do their own due diligence before investing in any IPO.

Here are the steps to apply for J.G.Chemicals Ltd IPO:

Step 1: Log in to your Kotak Securities Demat account Log in to your Demat account to access IPO investments. Next, select the current IPO section.

Step 2: Specify IPO details Enter the number of lots and the price you wish to apply for.

Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.

Step 4: Mandate Notification Your UPI app will receive a mandate notification to block funds.

Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.

Top J.G.Chemicals Ltd IPO IPO FAQs

J.G.Chemicals Ltd IPO will list on 2024-03-13.

251.19 is the issue size of J.G.Chemicals Ltd IPO.

The minimum lot size is 67 shares and the investment required is ₹14807.

The price band of J.G.Chemicals Ltd IPO is ₹210 to ₹221.

You can read more about J.G.Chemicals Ltd IPO and its IPO from the company’s red herring prospectus (RHP) here.

KFin Technologies Limited is the registrar for this IPO.

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