J.G.Chemicals
Mainboard₹251 Cr issue
-4.52%
Listing gain over issue price
Issue size
₹251 Cr
1 lot at cut-off
₹14,807
Lot size
67shares
Open
05 Mar 2024
Close
07 Mar 2024
Allotment
11 Mar 2024
Listing
13 Mar 2024
Listing performance
Issue price
₹221
Listed at
₹211
Listing-day close
₹184.80
Latest price
₹574.30
Close on 23 Oct 2026
Listing gain
-4.52%
Return since issue
+159.86%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 05 Mar 2024 – 07 Mar 2024
- Listing date
- 13 Mar 2024
- Face value
- ₹10 per share
- Issue price
- ₹221 per share
- Lot size
- 67 shares
- Total issue size
- ₹251 Cr
- Market cap at offer price
- ₹866 Cr
- Promoter holding
- 100.00% → 70.99% pre-issue → post-issue
- ISIN
- INE0MB501011
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Centrum Capital Ltd.
- Registered office
- 34A, Metcalfe Street, West Bengal
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 34,09,818 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 67 shares per lot, in multiples, at ₹221
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 67 | ₹14,807 |
| Retail (max) | 13 | 871 | ₹1,92,491 |
| S-HNI (min) | 14 | 938 | ₹2,07,298 |
| S-HNI (max) | 67 | 4,489 | ₹9,92,069 |
| B-HNI (min) | 68 | 4,556 | ₹10,06,876 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
34,09,818
Anchor portion
₹75.36 Cr
at ₹221 per share
Valuation and performance
Valuation at offer price
₹221 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 13.60 | 11.01 |
| P/E (×) | 16.25 | 20.07 |
| Price to book (×) | 3.51 | — |
| Market cap | — | ₹866 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 8.16%
- ROCE
- 11.86%
- Debt / equity
- 0.11
- PAT margin
- 7.24%
- NAV per share
- ₹68.68
- Price to book
- 3.51
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About J.G.Chemicals
J.G.Chemicals Limited was initially formed as a partnership firm on March 15, 1975, and converted into a private limited company in 2001 (J.G.Chemicals Private Limited), then converted to a public limited company in 2022. The company manufactures zinc oxide through the French process, which is the dominant production technology adopted by major producers globally. The company has manufacturing facilities at Belur and Jangalpur in West Bengal (owned land) and at Naidupeta in Andhra Pradesh (leased facility). The company sells over 80 grades of zinc oxide to more than 200 domestic customers and over 50 global customers across 10 countries. Revenue from zinc oxide sales represented 99.03%, 98.75%, 98.30%, and 98.54% of total income for the nine months ended December 31, 2023, and fiscal years 2023, 2022, and 2021 respectively. The company has recently expanded manufacturing capacity and commenced production of zinc sulphate and allied chemicals. The company is significantly dependent on its material subsidiary, BDJ Oxides Private Limited, which contributed 63.83% of revenue and 68.01% of profit after tax for the nine-month period ended December 31, 2023.
Company Analysis
from RHPJ.G.Chemicals Limited is India's largest zinc oxide manufacturer by production and revenue, using the French process technology, producing over 80 grades of zinc oxide for applications across rubber, pharmaceuticals, ceramics, and other industries.
J.G.Chemicals Limited was initially formed as a partnership firm on March 15, 1975, and converted into a private limited company in 2001 (J.G.Chemicals Private Limited), then converted to a public limited company in 2022. The company manufactures zinc oxide through the French process, which is the dominant production technology adopted by major producers globally. The company has manufacturing facilities at Belur and Jangalpur in West Bengal (owned land) and at Naidupeta in Andhra Pradesh (leased facility). The company sells over 80 grades of zinc oxide to more than 200 domestic customers and over 50 global customers across 10 countries. Revenue from zinc oxide sales represented 99.03%, 98.75%, 98.30%, and 98.54% of total income for the nine months ended December 31, 2023, and fiscal years 2023, 2022, and 2021 respectively. The company has recently expanded manufacturing capacity and commenced production of zinc sulphate and allied chemicals. The company is significantly dependent on its material subsidiary, BDJ Oxides Private Limited, which contributed 63.83% of revenue and 68.01% of profit after tax for the nine-month period ended December 31, 2023.
specialty chemicalsrubber manufacturing (tyre and other rubber products)pharmaceuticals and cosmeticsceramicspaints and coatingselectronics and batteriesagrochemicals and fertilizerslubricantsoil and gasanimal feed
Objects of the Issue
- Investment in Material Subsidiary BDJ Oxides for repayment or pre-payment of borrowings ₹250.00 million p.26
- Funding capital expenditure for setting up research and development centre at Naidupeta ₹60.58 million p.26
- Funding long-term working capital requirements of Material Subsidiary BDJ Oxides ₹600.00 million p.26
- Funding long-term working capital requirements of Company ₹350.00 million p.26
- General corporate purposes p.26
- Repayment of borrowings p.59
- Funding capital expenditure for research and development centre ₹60.58 million p.60
- Funding long-term working capital requirements of Material Subsidiary p.59
- Funding long-term working capital requirements of our Company p.59
- General corporate purposes p.59
- Investment in our Material Subsidiary, viz. BDJ Oxides: repayment or pre-payment, in full or in part, of all or certain borrowings availed by our Material Subsidiary ₹250.00 million p.108
- Investment in our Material Subsidiary, viz. BDJ Oxides: funding capital expenditure requirements for setting up of a research and development centre situated in Naidupeta, Andhra Pradesh ₹60.58 million p.112
- Investment in our Material Subsidiary, viz. BDJ Oxides: funding its long-term working capital requirements ₹600.00 million p.115
- Funding long-term working capital requirements of our Company ₹350.00 million p.117
- General corporate purposes [●] p.120
- Funding capital expenditure for expansion and improvement of manufacturing facilities ₹ 1,000.00 million
- Repayment of borrowings ₹ 400.00 million
- General corporate purposes ₹ 250.00 million p.26
Issue Structure
- Total Issue
- ₹ [●] million
- Fresh Issue
- Up to [●] Equity Shares aggregating up to ₹ 1,650.00 million
- Offer for Sale
- Up to 3,900,000 Equity Shares aggregating up to ₹ [●] million
- Price Band
- [●] per Equity Share (including share premium of ₹ [●])
- Lot Size
- [●] Equity Shares
- Face Value
- ₹ 10 each
Business Model
The company manufactures and sells over 80 grades of zinc oxide primarily produced through the French process technology. The company generates revenue from sales of zinc oxide to industrial customers across multiple end-use industries including rubber (tyre and other rubber products), pharmaceuticals, cosmetics, ceramics, paints and coatings, electronics, batteries, agrochemicals, fertilizers, specialty chemicals, lubricants, oil and gas, and animal feed. The company sources primary raw materials (virgin zinc metal and zinc dross) from domestic and international suppliers. Cost of materials consumed represented 83.97%, 81.18%, 82.61%, and 79.36% of revenue from operations for the respective periods. The company operates through its material subsidiary BDJ Oxides Private Limited for significant portion of operations, and recently expanded to produce zinc sulphate and allied chemicals.
Business Segments
Sale of zinc oxide to rubber manufacturers for tyre and other rubber products
Sale of zinc oxide to tyre manufacturers
Sale of zinc oxide to manufacturers of rubber products other than tyres
Sale of zinc oxide to pharmaceutical and cosmetic manufacturers
Sale of zinc oxide to agricultural end-use industries
Sale of zinc oxide to ceramics, paints and coatings, electronics and batteries, lubricants, oil and gas, and animal feed industries
Manufacture and sale of zinc oxide for use in pharmaceutical, rubber, ceramics, and chemical industries
Recently established new zinc sulphate and other allied chemicals unit near existing manufacturing facility in Naidupeta, Andhra Pradesh for diversification into zinc sulphate and allied products business
Manufactures over 80 grades of zinc oxide for use in rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, speciality chemicals, lubricants, oil and gas and animal feed
Manufacture of zinc oxide for use in tyre and other rubber product applications
Manufacture of pharmaceutical-grade zinc oxide and specialty chemicals
Production of zinc sulphate for use as micronutrient in agricultural fertilizers
Ceramics, paints & coatings, electronics & batteries, lubricants, oil & gas and animal feed applications
Manufacturing and sale of zinc oxide and allied chemical products
Manufacturing and sale of zinc oxide through French process, used as vulcanization agent in rubber (tyres and other rubber products), and in ceramics, paints, coatings, pharmaceuticals, cosmetics, electronics, batteries, agro-chemicals, fertilizers, speciality chemicals, lubricants, oil and gas, latex products and animal feed
Manufacture and sale of zinc oxide and related products including zinc sulphate
SWOT Analysis
Strengths
- • Leading zinc oxide manufacturer by production and revenue using French process technology(p.25)
- • Diverse product portfolio with over 80 grades of zinc oxide(p.25)
- • Strong customer base across multiple geographies and industries(p.37)
- • Significant contribution from material subsidiary with strong profitability(p.36)
- • Diverse manufacturing capabilities with multiple ISO certifications(p.51)
- • Established customer relationships built over time with repeat orders(p.49)
- • Pharma-grade product certification enabling market expansion(p.51)
- • European export credentials via REACH certification(p.51)
- • Supplier to 9 of top 10 global tyre manufacturers and all top 11 Indian tyre manufacturers(p.124)
- • Strong and consistent financial performance with high revenue and profit growth(p.124)
- • Long-term relationships with diversified customer base of over 250 customers(p.124)
- • Diversified product portfolio across 80+ grades of zinc oxide(p.115)
- • High entry barriers in key end-use industries protecting competitive position(p.124)
- • Leading market position in zinc oxide manufacturing(p.181)
- • Strong installed capacity across multiple facilities(p.182)
- • Supplier to major global and domestic tyre manufacturers(p.181)
- • High entry barriers through vendor approval process(p.184)
- • Strong supplier relationships and raw material access(p.184)
- • Only zinc oxide facility in India with IATF certification(p.182)
- • Experienced management with industry expertise(p.187)
- • Strong financial performance and profitability(p.185)
- • Largest zinc oxide manufacturer in India by production and revenue using French process technology(p.298)
- • Significant market share and global position with ~30% market share in India and among top 10 globally(p.298)
- • Diverse product portfolio across 80+ grades serving multiple end-user industries(p.298)
- • Long-standing customer relationships and high entry barriers to competitors(p.301)
- • Established presence across multiple manufacturing facilities with recent capacity expansion(p.302)
- • Strong financial performance with significant revenue growth over four years(p.299)
- • Significant installed capacity expansion at Naidupeta facility(p.325)
- • Conservative liquidity management and efficient working capital practices(p.327)
- • Low debt-to-equity ratio with manageable indebtedness(p.325)
- • Minimal litigation and legal risks(p.332)
Weaknesses
- • Extreme dependence on single product (zinc oxide) representing >98% of revenue(p.35)
- • Heavy reliance on material subsidiary BDJ Oxides for 63-74% of revenue and 68% of profits(p.36)
- • Customer concentration with top 10 customers accounting for 75-77% of revenue(p.37)
- • No long-term supply contracts with raw material suppliers exposing to price volatility(p.39)
- • Logo not registered as trademark limiting brand protection(p.37)
- • Leasehold status of key manufacturing facility in Naidupeta creates operational risk(p.40)
- • No identifiable R&D expenditure in recent years despite new product development plans(p.41)
- • Negative operating cash flows in Fiscal 2021(p.44)
- • Dependence on promoter knowledge and limited succession planning(p.48)
- • High employee attrition rates indicating talent retention challenges(p.48)
- • Absence of long-term customer contracts creating revenue volatility(p.49)
- • Low and fluctuating capacity utilization across facilities(p.50)
- • High working capital requirements creating financing dependence(p.57)
- • Historical regulatory compliance lapses and administrative errors(p.49)
- • High trade receivables and credit risk exposure(p.55)
- • Promoter conflict of interest risk and related party transactions(p.54)
- • Material Subsidiary carries significant outstanding borrowings(p.109)
- • Dependence on Material Subsidiary for majority of manufacturing operations(p.115)
- • High working capital intensity of business model(p.115)
- • R&D Centre project carries risk of cost overruns and implementation delays(p.108)
- • High dependence on rubber and tyre industry(p.183)
- • Concentration of customer base in top 10 customers(p.194)
- • Challenge in sourcing raw material (Zinc Dross)(p.182)
- • Leasehold properties subject to renewal risks(p.197)
- • Dependence on third-party logistics providers(p.194)
- • Heavy dependence on top 10 customers for 76-77% of revenue(p.301)
- • High reliance on rubber and tyre industry (90%+ of revenue) creating concentration risk(p.300)
- • High raw material costs representing 80-84% of revenue from operations(p.302)
- • Material subsidiary concentration with 94.13% of one subsidiary's ownership(p.289)
- • Contested contingent liabilities relating to sales tax and entry tax(p.280)
- • Significant dependence on top ten customers for revenue(p.329)
- • Concentration of manufacturing facilities requiring lender consent for major corporate actions(p.325)
- • Operating cash flow deficit in Fiscal 2021(p.324)
- • Outstanding tax litigation(p.334)
Opportunities
- • Expansion of product portfolio into zinc sulphate and pharmaceutical-grade zinc oxide(p.41)
- • Establishment of dedicated R&D centre for complex product innovations(p.41)
- • Increased capacity for specialty zinc oxide and allied chemicals production(p.35)
- • International expansion opportunity with exports representing only 8-9% of current revenue(p.47)
- • Growing demand in niche applications including active zinc oxide for electronics and specialty chemicals(p.41)
- • Expansion of production capacity and manufacturing footprint(p.53)
- • Diversification into new product verticals and chemistries(p.53)
- • R&D investment to support complex chemistry innovation(p.53)
- • Customer base expansion through preferred supplier status leverage(p.49)
- • Expansion into higher-margin specialty chemicals and non-tyre applications(p.151)
- • Growth in Indian automobile and electric vehicle manufacturing(p.149)
- • Increasing focus on R&D to support complex chemistries and product innovation(p.187)
- • Expansion of market presence in emerging segments like batteries, agrochemicals, and nutraceuticals(p.140)
- • India gaining market share from China in chemicals manufacturing(p.139)
- • Strong projected growth in Indian zinc oxide end-use industries(p.149)
- • Expand production capacity and establish greenfield facility in western India(p.187)
- • Grow zinc sulphate business serving agricultural demand(p.188)
- • Expand overseas operations in South-East Asia(p.188)
- • Develop pharmaceutical grade zinc oxide(p.189)
- • Growth in tyre industry driven by capex expansion(p.165)
- • Diversify into specialty chemicals and battery-grade zinc oxide(p.190)
- • Leverage structural shift towards radial tyres(p.165)
- • Support electric vehicle tyre demand growth(p.166)
- • Growing electric vehicle market and increasing automotive production driving tyre demand(p.300)
- • Expansion of geographic reach with presence in over 10 countries and 200+ domestic customers(p.298)
- • Diversification into allied chemicals with zinc sulphate production capacity(p.302)
- • Strong replacement market demand for tyres maintaining growth despite slow industry growth(p.301)
- • Potential to expand customer base across pharmaceuticals, ceramics, and other end-user industries(p.301)
- • Expansion of zinc sulphate production capacity(p.325)
- • Geographic expansion through new warehouse facilities(p.342)
Threats
- • Heavy dependence on rubber and tyre industry representing 90% of revenue with tyre segment at 83%(p.38)
- • Slowdown in automobile and tyre industry affecting end-customer demand(p.39)
- • Highly competitive industry with larger international competitors having economies of scale(p.38)
- • Foreign exchange and commodity price volatility affecting raw material costs(p.45)
- • Regulatory risks in international markets including REACH registration for EU sales(p.47)
- • Risk of trade barriers, tariffs and export restrictions in target markets(p.47)
- • COVID-19 pandemic continuing to cause operational disruptions and supply chain issues(p.42)
- • Environmental and labour compliance risks with stringent regulations becoming more complex(p.44)
- • Occupational health and safety risks from handling hazardous materials in manufacturing(p.40)
- • Shortage or supply delays in critical raw materials from overseas suppliers(p.45)
- • Regulatory approval and licensing risks affecting operations(p.48)
- • Environmental and labor law compliance costs and penalties(p.48)
- • Dependence on third-party transportation and logistics volatility(p.50)
- • Freight cost volatility tied to oil and gas prices(p.51)
- • Machinery breakdown and operational disruption risks(p.50)
- • Electricity, fuel and water supply disruption vulnerability(p.58)
- • Quality control failure risks and customer order cancellation(p.51)
- • Regulatory changes affecting product demand and compliance costs(p.51)
- • Economic slowdown and reduced customer demand(p.62)
- • Inflation impacting raw material and operational costs(p.64)
- • Zinc raw material price volatility and supply constraints(p.149)
- • Supply chain disruption from limited zinc dross and zinc scrap availability(p.142)
- • Intense competition from organized and unorganized zinc oxide producers(p.148)
- • Regulatory and environmental compliance risks(p.114)
- • Exposure to global economic slowdown affecting end-use industries(p.135)
- • Dependence on vendor approval processes of tyre manufacturers(p.141)
- • Slow growth in domestic tyre industry(p.184)
- • Import restrictions may expire reducing protection(p.169)
- • Challenging external market conditions(p.169)
- • Volatility in raw material prices(p.193)
- • Macroeconomic headwinds impacting demand(p.169)
- • Slowdown in tyre and automotive industry affecting primary customer segment(p.300)
- • Exposure to volatility in raw material prices and supply constraints(p.302)
- • Government regulation changes and policy shifts affecting operations and profitability(p.302)
- • Regional concentration of manufacturing facilities creating geographic risk(p.302)
- • Ongoing COVID-19 pandemic risk with potential for future disruptions(p.301)
- • Exposure to commodity price fluctuations in zinc oxide(p.327)
- • Foreign exchange risk from international transactions(p.327)
- • Interest rate risk on floating rate borrowings(p.327)
- • Dependency on obtaining and retaining various regulatory licenses and approvals(p.336)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Suresh Jhunjhunwala | Promoter | 12.30% | — |
| Anirudh Jhunjhunwala | Promoter | 13.11% | — |
| Anuj Jhunjhunwala | Promoter | 12.30% | — |
| Vision Projects & Finvest Private Limited | Promoter Group / Selling Shareholder | 32.99% | — |
| Jayanti Commercial Limited | Promoter Group / Selling Shareholder | 10.04% | — |
| Alka Jhunjhunwala | Promoter Group | 13.11% | — |
| Suresh Kumar Jhunjhunwala (HUF) | Promoter Group / Selling Shareholder | 4.10% | — |
| Anirudh Jhunjhunwala (HUF) | Promoter Group / Selling Shareholder | 2.05% | — |
| Suresh Jhunjhunwala | Promoter | 12.30% | — |
| Anirudh Jhunjhunwala | Promoter | 13.11% | — |
| Anuj Jhunjhunwala | Promoter | 12.30% | — |
| Vision Projects & Finvest Private Limited | Promoter Group | 32.99% | — |
| Jayanti Commercial Limited | Promoter Group | 10.04% | — |
| Alka Jhunjhunwala | Promoter Group | 13.11% | — |
| Suresh Kumar Jhunjhunwala (HUF) | Promoter Group | 4.10% | — |
| Anirudh Jhunjhunwala (HUF) | Promoter Group | 2.05% | — |
| Suresh Jhunjhunwala | Promoter | — | — |
| Anirudh Jhunjhunwala | Promoter | — | — |
| Anuj Jhunjhunwala | Promoter | — | — |
| Suresh Jhunjhunwala | Promoter | 12.30% | 12.30% |
| Anirudh Jhunjhunwala | Promoter | 13.11% | 13.11% |
| Anuj Jhunjhunwala | Promoter | 12.30% | 12.30% |
| Suresh Jhunjhunwala | Promoter/Executive Chairman | — | — |
| Anirudh Jhunjhunwala | Promoter/CEO & Managing Director | — | — |
| Anuj Jhunjhunwala | Promoter/Whole time Director & CFO | — | — |
| Vision Projects & Finvest Private Limited | Selling Shareholder | — | — |
| Jayanti Commercial Limited | Selling Shareholder | — | — |
| Suresh Kumar Jhunjhunwala (HUF) | Selling Shareholder | — | — |
| Anirudh Jhunjhunwala (HUF) | Selling Shareholder | — | — |
Leadership
Suresh Jhunjhunwala · Executive Chairman
Anirudh Jhunjhunwala · Managing Director / CEO
Anuj Jhunjhunwala · Chief Financial Officer (CFO) / Whole-time Director
Swati Poddar · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
J.G.Chemicals IPO FAQs
What is the lot size of J.G.Chemicals IPO?
The minimum lot size of J.G.Chemicals IPO is 67 shares. One lot costs ₹14,807 at the cut-off price.
When does J.G.Chemicals IPO open and close?
J.G.Chemicals IPO opened for subscription on 05 Mar 2024 and closed on 07 Mar 2024.
What is the listing date of J.G.Chemicals IPO?
J.G.Chemicals IPO listed on 13 Mar 2024.