J.G.Chemicals Limited IPO debut on the exchange
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
Shares of J.G.Chemicals Limited made its debut on the exchange.
The scrip listed Rs 211 per share on BSE and Rs 209 per share on NSE. The company's share price closed at Rs 184.65 per share on the BSE and at Rs 183.70 per share on the NSE.
As per NSE, the total quantity traded stood at 78.12 lakh shares, on BSE the total Quantity stood at 5.01 lakh shares. Total Turnover (BSE+NSE) on Day 1 stood at Rs 164.45 crore.
The Market Capitalization of the Company at today’s closing price stood at Rs. 723.57 Crore as per BSE and Rs. 719.85 Crore as per NSE.
The Initial Public Offering of J.G.Chemicals Limited was subscribed 27.78 times. Qualified Institutional Buyer Portion subscribed 32.09 times, Non-Institutional Investors Portion was subscribed 46.32 times, whereas Retail Portion was subscribed with 17.43 times.
J.G. Chemicals along with its subsidiary are India’s largest zinc oxide manufacturer in terms of production and revenue through French process, with a market share of around 30% as of March 2022. It uses French process for the manufacturing zinc oxide, a dominant production technology for producing zinc oxide adopted by all the major producers in Americas, Europe and Asia. (Source: CARE Report)
It sells over 80 grades of zinc oxide and are among the top ten manufacturers of zinc oxides globally. Companies in the tyre industry in India are the largest consumers of its product. The Company also supplies to leading paints manufacturers, footwear players and cosmetics players in India.
Its 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, speciality chemicals, lubricants, oil & gas and animal feed.
From Fiscals 2017 to 2021, tyre production in India has grown at a CAGR of 0.32%, according to a CARE Report, whereas in the same period, the Company’s volumes have grown at a significantly higher CAGR of 13.32%. Despite the slow growth of the Company’s biggest end-use industry customer, it has been able to grow primarily on account of inter alia its long-term relationships with tyre companies which have been developed through the products it offers them; its ability to scale up production and quality systems as per the customer requirements; certainty of and on time supply of its products to its customers; and its ability offer the right quality at the right price to its customers.
