JG Chemicals IPO gets listed at Rs 209, a discount of 5.4% to the issue price of Rs 221. The company opened retail bidding on March 5 and closed on March 7.
In the grey market, the company’s shares were changing hands with a premium of 2%. The grey market is an unofficial market where shares are traded in an illegal way before listing. But helps investors in taking cues from it.
JG Chemicals IPO raised Rs 251.19 crore from the investors by offering them a combination of fresh issue as well as an offer for sale. In this, the fresh issue was of 7.5 million shares and 3.9 million shares were for offer for sale.
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Shares of the company were listed on both the exchanges – NSE and BSE. The company offered the IPO at a price band of Rs 210 to 221 per equity share. A retail investor had to bid for a minimum of 67 shares amounting to Rs 14,807.
Centrum Capital, Emkay Global Financial, and Keynote Financial Services were the book-running lead managers for the IPO of JG Chemicals. Kfin Technologies was the registrar, maintaining allotment and refund.
The company stated that the raised proceeds would be used to invest in the material subsidiary, BJD Oxides, for payment of debt. It will also use the money for capital expenditure of the R&D center and long-term working capital.
The company is the largest zinc oxide manufacturer and enjoys that monopoly in the business. Expectations are that the listing will be between flat to muted to its issue price due to selling pressure in the mid- and small-cap sector.
“Given the company’s strong market position, diversified client base, and strategic growth initiatives, we believe JG Chemicals Ltd continues to solidify its pivotal position in the zinc oxide market. Hence, considering all the parameters we recommend conservative investors to “Book Profit” on the listing day and while those investors who wish to add can wait and watch the space post listing performance before taking any action,” said Prashanth Tapse, Senior Vice President of Research at Mehta Equities.