J G Chemicals made a weak stock market debut with its shares getting listed at Rs 209, a 5 per cent discount to its issue price of Rs 221 per share on the National Stock Exchange (NSE). The stock of the specialty chemicals listed at Rs 211 on the BSE.
Post listing, the market price of J G Chemicals hit a high of Rs 213.75 and a low of Rs 201.90 in the intraday trade. At 10:02 AM, the stock was trading at Rs 206.05, 7 per cent below its issue price. In comparison, the S&P BSE Sensex was down 0.09 per cent at 73,597.
J G Chemicals’ initial public offer (IPO) had received a healthy response from investors with the total subscription of 28.52 times. Individual investors portion was oversubscribed by 18.03 times, while Qualified Institutional Buyers (QIB) showed a subscription of 32.33 times, and Non-Institutional Investors (NII) a whopping 47.92 times.
J G Chemicals is India’s largest zinc oxide manufacturer in terms of production and revenue for zinc oxide manufacturing. It uses French process for manufacturing, which is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in America, Europe, and Asia.
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The company’s products cater to a wide range of industrial applications, including rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals and cosmetics, electronics and batteries, agro chemicals and fertilisers, speciality chemicals, lubricants, oil and gas, and animal feed.
“J G Chemicals has a leading market position with a diversified customer base, being supplier to 9 out of top 10 global tyre manufacturers and to all the top 11 Indian tyre manufacturers. It enjoys long-term relationships with customers and suppliers, having robust supply chain with more than 250 customers in last three years along with focus on long term sustainability with environmental initiatives and safety standards,” analyst at Anand Rathi Share and Stock Brokers said.
The company is expanding its footprints, diversifying products in new verticals, improving capacity utilisation with strong demand, and focusing on R&D to support complex chemistries and cost efficiencies, thereby improving the margin acceleration over the next few years, analysts said.
First Published: Mar 13 2024 | 10:19 AM IST