J.G.Chemicals Limited, India's largest zinc oxide manufacturer in terms of production and revenue, has fixed the price band of Rs. 210 to Rs. 221 per equity share of face value Rs. 10/- each for its maiden initial public offer (IPO). The IPO will open on March 5, 2024, for subscription and close on March 7, 2024. Investors can bid for a minimum of 67 Equity Shares and in multiples of 67 equity shares thereafter.

The issue consists of a fresh issue of equity shares worth Rs 1,650 million and an offer for sale (OFS) of up to 3.90 million equity shares by investor selling shareholders.

According to the rerlease issued by the company, the issue consists of a fresh issue of equity shares worth Rs 1,650 million and an offer for sale (OFS) of up to 3.90 million equity shares by investor selling shareholders.

“Proceeds from the fresh issue to the extent of (A) Rs. 910.58 million will be utilised for investing in JG Chemicals’ Material Subsidiary by way of (i) Rs. 600 million for funding its long-term working capital requirements, (ii) Rs 60.58 million for setting up of a research and development centre at Naidupeta, Andhra Pradesh and (iii) Rs 250.00 million for repayment or pre-payment, in full or in part, of all or certain borrowings availed by the Material Subsidiary; (B) Rs 350.00 million will be utilised for funding the long-term working capital requirements of J.G.Chemicals Limited, and (C) general corporate purposes,” the release added.

“From Fiscals 2017 to 2021, tyre production in India has grown at a CAGR of 0.32%, according to a CARE Report, whereas in the same period, the company’s volumes have grown at a significantly higher CAGR of 13.32%. Despite the slow growth of the biggest end-use industry customer, it has been able to grow primarily on account of its long-term relationships with tyre companies which have been developed through the products it offers them; its ability to scale up production and quality systems as per the customer requirements, the release said. 

Centrum Capital Limited, Emkay Global Financial Services Limited, and Keynote Financial Services Limited are the book running lead managers and KFin Technologies Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE, the release stated.