J.G.CHEMICALS LIMITED IPO
J.G.CHEMICALS LIMITED COMPANY PROFILE : J.G. Chemicals Limited holds the position of India’s foremost zinc oxide manufacturer, both in terms of production volume and revenue, particularly through the French process, which stands as the primary production method embraced by major producers across the Americas, Europe, and Asia. As of March 2022, the company commands a significant market share of approximately 30%. Offering a diverse portfolio, we market over 80 grades of zinc oxide and stand among the top ten manufacturers of zinc oxides worldwide.
The product range of J.G. Chemicals Limited serves a broad array of industrial sectors, encompassing rubber (including tires and other rubber products), ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics and batteries, agrochemicals and fertilizers, specialty chemicals, lubricants, oil and gas, as well as animal feed. In the past three years, J.G. Chemicals Limited has successfully marketed and sold its products to over 200 domestic customers and over 50 global customers, spanning across more than 10 countries.
As of December 31, 2023, J.G. Chemicals Limited possesses an aggregate installed capacity of 77,040 metric tonnes per annum (MTPA), distributed across three manufacturing facilities situated in (i) Jangalpur (Kolkata, West Bengal), (ii) Belur (Kolkata, West Bengal), and (iii) Naidupeta (Nellore District, Andhra Pradesh). Notably, the Naidupeta facility, which is the largest among them, is owned and operated by our Material Subsidiary. Recently, the installed capacity of the Naidupeta Facility has been expanded by an additional 13,440 MTPA for zinc oxide production and 10,080 MTPA for zinc sulphate and other related chemicals.
In India, the tire industry constitutes 70% of rubber consumption, with companies in this sector being the primary consumers of J.G. Chemicals Limited products. J.G. Chemicals Limited not only serves as a supplier to nine out of the top ten global tire manufacturers but also to all of the top eleven tire manufacturers in India. Additionally, the company supplies its products to leading paint manufacturers, footwear companies, and cosmetics manufacturers in India. J.G. Chemicals Limited’s Material Subsidiary, BDJ Oxides, holds the distinction of being the sole zinc oxide manufacturing facility in India with an IATF certification, which is preferred by tire manufacturers supplying to original equipment manufacturers.
J.G.CHEMICALS LIMITED IPO INFORMATION :
- Issue date: 05-Mar-2024 to 07-Mar-2024
- Price range: Rs. 210/- to Rs. 221/-
- Issue size: ₹ 251.19 Crores
- Face value : Re.10 per Equity Share
- Bid lot (retail) : 14,807 ( 1 LOT )
- Fresh issue : ₹ 165 Crores
- OFS : ₹ 86.19 Crores
- Allotment date : 11-Mar-2024
- Listing date : 13-Mar-2024
- Promoter holding : 100.00 % ( PRE – ISSUE )
- Name of registrar : KFin Technologies Limited
- IPO reservation – QIB – 50% | NII – 15% | Retail – 35%
GMP(Expected): ₹60 ( Expected listing gains of 27% )
J.G.CHEMICALS LIMITED FINANCIAL INFORMATION :
CONSOLIDATED STATEMENT OF PROFIT AND LOSS :
| All amounts are in Rs. Millions except EPS | Nine months period ended December 31,2023 | For the year ended March 31, 2023 | For the year ended March 31, 2022 |
|---|---|---|---|
| Total Income | 4,910.99 | 7,941.88 | 6,230.47 |
| Total Expenses | 4,643.42 | 7,174.95 | 5,656.01 |
| Profit before tax | 267.57 | 766.94 | 574.46 |
| Profit for the period | 185.10 | 567.93 | 431.26 |
| Total Comprehensive Income | 192.24 | 568.90 | 432.09 |
| Earnings per equity share | 5.60 - Not annualised | 17.32 | 12.61 |
FINANCIAL AND OPERATIONAL PERFORMANCE INDICATORS :
Nine Months Ending December 31, 2023
- EBITDA Margin (%) – 6.77 %
- PAT Margin (%) – 3.81%
- Operating Cash Flows – ₹671.13 Million
- Net Debt – (709.07)
- Debt Equity Ratio – 0.11
- ROCE (%) – 11.86 %
- ROE (%) – 8.20%
OBJECTS OF THE ISSUE :
- Investment in Material Subsidiary, BDJ Oxides: Repayment or pre-payment, either fully or partially, of borrowings obtained by Material Subsidiary
- Funding the capital expenditure needs for establishing a research and development center located in Naidupeta, Andhra Pradesh.
- Supporting the long-term working capital needs of BDJ Oxides.
- General corporate purposes.