JG Chemicals IPO: Gray Market Insights and Investment Analysis

As the eagerly anticipated JG Chemicals IPO gears up for its subscription opening on March 5, investors are keenly observing the latest updates from the gray market to gauge investor sentiment and potential listing performance.

With an aim to raise Rs 251 crore, JG Chemicals has set a price band of Rs 210-221 per share, offering investors an opportunity to participate until March 7. Let’s delve into the gray market insights and key details of this IPO.

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Gray Market Update:

In the gray market, JG Chemicals shares are currently trading at a premium of Rs 50, signaling positive sentiment among investors two days before the IPO opens.

If this premium holds, the company’s shares could potentially list at Rs 271, translating to a profit of 22.62% for investors.

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It’s essential to note that gray market dynamics are subject to change, and investors should monitor developments closely.

Details of JG Chemicals IPO:

The IPO features a lot size of 67 shares, requiring retail investors to invest a minimum of Rs 14,807.

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Notably, the IPO comprises fresh equity shares worth Rs 165 crore and an Offer for Sale (OFS) of shares worth Rs 86.19 crore.

The OFS involves Vision Projects & Finvest, Jayanti Commercial, Suresh Kumar Jhunjhunwala (HUF), and Anirudh Jhunjhunwala (HUF) as selling shareholders.

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JG Chemicals, headquartered in West Bengal, plans to allocate Rs 91.06 crore from the IPO proceeds to its subsidiary company BDJ Oxides, while Rs 35 crore will be earmarked for long-term working capital needs.

The remaining funds will be utilized for general corporate purposes. The IPO is managed by Centrum Capital, Emkay Global Financial Services, and Keynote Financial Services.

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Financial Performance:

JG Chemicals operates across various industries, including Tire and Rubber Products, Ceramics, Paints, Pharmaceuticals, Electronics, and more.

In the fiscal year 2023, the company witnessed a robust financial performance, with consolidated net profit surging by 31.7% year-on-year to Rs 56.8 crore.

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Furthermore, revenue from operations experienced a significant uptick, climbing by 28% to Rs 794 crore.

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