Check out JG Chemicals’ price band, issue size, and GMP here when the IPO opens today

The initial public offering (IPO) for zinc oxide maker JG Chemicals began today, March 5, 2024, and will end on March 7, 2024. During that time, the public will be able to subscribe to the inaugural share sale. On March 4, the anchor investor auction was open for business.

Band for JG Chemicals’ IPO Price

JG Chemicals set a pricing range for its Rs 251-crore initial public offering of Rs 210–221 per share.

Size of JG Chemicals’ IPO Issue

The promoter group’s offer for sale (OFS) of 39 lakh equity shares, valued at the top end of the price range at Rs 86.2 crore, and a new issuance of equity shares up to Rs 165 crore make up the Rs 251.2-crore IPO.

Vision Projects & Finvest Pvt Ltd, Anirudh Jhunjhunwala (HUF), Suresh Kumar Jhunjhunwala (HUF), and Jayanti Commercial Ltd will sell equity shares as part of the OFS.

Goals of JG Chemicals’ IPO

A total of Rs 91 crore from the new issuance will be used to invest in JG Chemicals’ material subsidiary, BDJ Oxides, and another Rs 35 crore will be used to finance the company’s long-term working capital needs. A portion of the proceeds will also be utilized for general corporate purposes.

IPO GMP for JG Chemicals

GMP is an acronym for Grey Market Premium in the context of an IPO. This statistic, which is unofficial, represents the unlisted price at which shares are exchanged on the unofficial gray market. Supply and demand among potential investors set this price prior to the stock exchange’s formal listing.

JG Chemicals’ IPO GMP is Rs 50.

The GMP is a proxy for the real listing price and is not official. Before making any investment choices, it is important to carry out extensive research on the firm, the specifics of the IPO, and the state of the market as a whole.

Concerning J.G. Chemicals

In terms of both output and income, the Kolkata-based company is the biggest zinc oxide producer in India. It is one of the top ten producers of zinc oxides worldwide and offers more than 80 grades of the metal for sale.

The biggest user of its product is the Indian tire sector.

Leading producers of paint, shoes, and cosmetics in the nation are also served by the company.

Retail investors will get 35% of the issue size, non-institutional investors will get 15%, and eligible institutional purchasers will receive half of the total.

Following the minimum of 67 equity shares, investors may bid in multiples of 67 equity shares.

The issue’s book-running lead managers are Centrum Capital Ltd., Emkay Global Financial Services Ltd., and Keynote Financial Services Ltd.

It is suggested that the company’s equity shares be listed on the BSE and NSE.

A day before its IPO, JG Chemicals said on Monday that it had received over Rs 75 crore from anchor investors.

According to a circular posted on the BSE website, the business has assigned 34.09 lakh shares to four funds at Rs 221 each, which is also the high end of the price range.

The business has received Rs 75.36 crore from anchor investors at this price.

Among the anchor investors were SBI General Insurance Company, Pinebridge Global Funds, the Carnelian Structural Fund, and the Massachusetts Institute of Technology.