Mumbai: Zinc Oxide manufacturer JG Chemicals Ltd announced its IPO priced at Rs 210 to Rs 221 per equity share — aggregating to Rs 251 crores — which will be opening on March 5 and closing on March 7, 2024.
Suresh Jhunjhunwala, Chairman, JG Chemicals Ltd, said recently that the company, which manufactures 80-plus types of zinc oxide according to customer requirements, has grown from 500 metric tonnes per annum production to a capacity of 60,000 tonnes per annum today.
JG Chemicals Ltd is India’s largest zinc oxide manufacturer in terms of production and revenue with market share of around 30% as of March 2022.
The company’s total revenue for the nine months ended December 2023 stood at Rs 491 crore, while PAT was Rs 18.5 crore.
Anirudh Jhunjhunwala, MD and CEO, said the IPO proceeds would be used towards expanding oxide production capacity and broadening the company’s geographical footprint, investment in its material subsidiary, repayment of debt, funding capex, working capital requirements and general corporate purposes.
The Industrywide ZnO manufacturing process helps in reducing energy consumption in the production of zinc oxide, he said.
He said the company wanted to diversify its product offerings and enter new verticals, while being in B2B and opening up in B2C market alongside eyeing expansion in South-East Asia.
Centrum Capital, Emkay Global Financial Services and Keynote Financial Services are the book-running lead managers to the issue.
