JG Chemicals‘ first public offering (IPO) on the stock market was lackluster, as the company’s shares were listed at Rs 209, which was 5% less than the share price of Rs 221 on the National Stock Exchange (NSE). Specialty chemical shares are trading at Rs 211 on the BSE.
Following the listing, the market price of JG Chemicals reached a high of Rs 213.75 and a low of Rs 201.90 in intraday activity. At 10:02 AM, the stock was trading at Rs 206.05, 7% below its issue price. In comparison, the S&P BSE Sensex fell 0.09 percent to 73,597.
J G Chemicals’ initial public offering (IPO) received a favorable response from investors, with a total subscription of 28.52 times. Individual investors were oversubscribed by 18.03 times, followed by Qualified Institutional Buyers (QIB) at 32.33 times and Non-Institutional Investors (NII) at 47.92 times.
J G Chemicals is India’s largest zinc oxide company in terms of both output and income. It employs the French process for manufacturing, which is the leading production technology for zinc oxide and has been adopted by all major producers in America, Europe, and Asia.
Rubber (tires and other rubber products), ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics and batteries, agrochemicals and fertilizers, specialty chemicals, lubricants, oil and gas, and animal feed are among the company’s offerings.
J G Chemicals holds a prominent position in the industry and serves a diverse range of clients, including nine out of the ten largest tire manufacturers worldwide and all eleven of the largest tire manufacturers in India. It has a strong supply chain with more than 250 clients in the previous three years and focuses on long-term sustainability with environmental initiatives and safety requirements,” according to an analyst at Anand Rathi Share and Stock Brokers. It also boasts long-term partnerships with suppliers and customers.
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According to analysts, the business plans to increase margin acceleration over the next several years by broadening its product offerings, diversifying into new verticals, increasing capacity utilization in light of high demand, and concentrating on research and development to support sophisticated chemistry and cost-effectiveness.
