JG Chemicals IPO has garnered significant attention from investors, particularly non-institutional investors (NIIs) and retail investors, leading to oversubscription on the final day of the subscription period. The retail portion was subscribed 12.59 times, NIIs portion showed strong demand at 21.82 times, while Qualified Institutional Buyers (QIB) portion reached 1.54 times.
During the second day of subscriptions, the enthusiasm continued, with JG Chemicals IPO status reaching 6.40 times overall. Retail investors subscribed 8.32 times, NIIs portion was oversubscribed 9.64 times, and QIB portion stood at 45%.
The IPO had a robust start, reaching full subscription on the first day. On the opening day, the subscription status was 2.47 times, with retail investors subscribing 3.64 times, NIIs portion at 2.90 times, and QIB portion at 2%.
The public issue allocates not more than 50% of shares to QIBs, at least 15% to NIIs, and a minimum of 35% for retail investors.
JG Chemicals IPO, open for subscription from March 5 to March 7, aims to raise funds in the range of ₹210 to ₹221 per equity share with a face value of ₹10. The company, a leading zinc oxide manufacturer in India, raised ₹75.35 crore from anchor investors.
The firm, ranking among the top 10 global producers of zinc oxide, offers over 80 grades of the metal. JG Chemicals reported a substantial increase in profit after tax (PAT) by 31.69% between March 2022 and March 2023, accompanied by a 27.47% rise in sales.
As of the latest update, JG Chemicals IPO has received bids for 9,38,32,361 shares against 81,68,714 shares on offer. The retail investors’ portion has been oversubscribed, with bids for 5,18,27,046 shares against 41,15,000 shares available. NIIs portion received bids for 3,84,81,517 shares against 17,63,572 shares on offer. QIBs have bid for 35,23,798 shares against 22,90,142 shares available.
JG Chemicals IPO, valued at ₹251.19 crore, comprises a fresh issue of ₹165 crore and an offer-for-sale (OFS) of up to 3,900,000 equity shares, aggregating to ₹86.19 crore. The company plans to utilize the net proceeds for various purposes, including investing in its Material Subsidiary, BDJ Oxides.
The grey market premium for JG Chemicals IPO is +25, indicating a premium of ₹25 in the grey market. This suggests an estimated listing price of ₹246 per share, a 11.31% increase from the IPO price of ₹221.
Bear Matthews