J.G. Chemicals IPO GMP, Details, Guidance, Subscription Status, allotment @ Chanakyanipothi.com
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J.G. Chemicals IPO Promoters
SURESH JHUNJHUNWALA, ANIRUDH JHUNJHUNWALA AND ANUJ JHUNJHUNWALA

J.G. Chemicals IPO Particulars & Guidance: About the Company

J.G.Chemicals is the largest manufacturer of zinc oxides in India and 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
It manufactures zinc oxide through French process, which is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in Americas, Europe and Asia. The market share of the Company is around 30% as of March 2022. It sells over 80 grades of zinc oxide and is among the top ten manufacturers of zinc oxides globally. Since its incorporation in 2001, it has expanded its business and scale of operations and have grown into a large, diversified zinc oxide player with a global footprint. The product caters to a wide spectrum of industrial applications, including in the rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, specialty chemicals, lubricants, oil & gas and animal feed.
Owing to its legacy of over four decades in manufacturing businesses, it benefits from its experience in catering to a wide array of customers and it has built a long-standing relationship with customers across end-user industries in the Tyres, ceramics, rubber, paints, cosmetics and batteries industry. Over the last three years, it marketed and sold its product to over 200 domestic customers and over 50 global customers in more than 10 countries.

In India, tyre industry accounts for 70% of rubber consumption and the companies in the
tyre industry are the largest consumers of its product. Along with being suppliers to 9 out of top 10 global tyre manufacturers and to all of the top 11 tyre manufacturers in India, it also supplies to leading paints manufacturers, footwear players and cosmetics players in India. Its Material Subsidiary, BDJ Oxides is the only zinc oxide manufacturing facility in India to have an IATF certification, which is preferred by tyre manufacturers supplying to original equipment manufacturers.
As a manufacturer of zinc oxide, it is a pre-requisite in most of its end-use industries for its products to be customised according to the specifications by customers, which usually acts as a significant entry barrier.

The installed capacity of its Naidupeta Facility specified above, has recently been augmented by an additional 13,440 MTPA for zinc oxide and 10,080 MTPA for zinc sulphate and other allied chemicals. All processes at its manufacturing facilities are undertaken with modern engineering systems to minimize emissions. It has installed recuperators in most of its furnaces to reduce its carbon footprint.
The Company procures its raw materials from multiple domestic and global suppliers. Its primary raw materials are virgin zinc metal and Zinc Dross.

For more information, click www.jgchem.com

Objects of the IPO
The Offer comprises the Fresh Issue and an Offer for Sale.
The Company intends to utilize the Net Proceeds towards the following objects:
1. Investment in its Material Subsidiary, viz. BDJ Oxides (i) repayment or pre-payment, in full or in part, of all or certain borrowings availed by the Material Subsidiary; (ii) funding capital expenditure requirements for setting up of a research and development center situated in Naidupeta and (iii) funding its long-term working capital requirements
2. Funding long-term working capital requirements of the Company.

J.G. Chemicals IPO Particulars & Guidance

J.G. Chemicals IPO Guidance* by Paresh Gordhandas, CA & Research Analyst.
J.G.Chemicals is the largest manufacturer of zinc oxides in India and 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.
Since its incorporation in 2001, it has expanded its business and scale of operations and have grown into a large, diversified zinc oxide player with a global footprint. The product caters to a wide spectrum of industrial applications, including in the rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, specialty chemicals, lubricants, oil & gas and animal feed.
Owing to its legacy of over four decades in manufacturing businesses, it benefits from its experience in catering to a wide array of customers and it has built a long-standing relationship with customers across end-user industries in the Tyres, ceramics, rubber, paints, cosmetics and batteries industry.
Size: The net size of is just Rs. 180.53 Cr. out which 1763572 shares are offered to the HNIs ( Rs.38.97 Cr.) Looking to the Small size and fancy of the investors, huge oversubscription for this IPO is assured.
Financial snapshot: The company has consistent performance during last 3 years.
Guidance: The shares at upper price band are offered at PE multiple of 12.76 (as compared to the PE multiple of Nocil 30.97). Thus the offer price leaves room for listing gains as well good returns in the 6/9 months post listing. Good fancy is visible in the grey market. Apply with full force

* Disclosure: The website has received Banner Advertisement for this IPO.

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J.G. Chemicals IPO GMP

J.G. Chemicals IPO GMP today details

J.G. Chemicals IPO GMP today, Details, Guidance, Subscription Status, allotment