The initial public offering (IPO) of JG Chemicals commenced on Tuesday, March 5, 2024, generating considerable interest among investors.
As per the latest available data until 12:47 PM on March 5, the public issue garnered a subscription of 1.06 times, with robust participation from retail investors.
The retail category witnessed a subscription of 1.76 times, indicating strong retail investor interest. However, the Qualified Institutional Buyers (QIB) category remained undersubscribed, while the Non-Institutional Investors (NII) category saw a subscription of 0.82 times.
The Grey Market Premium (GMP) for JG Chemicals IPO stood at Rs 50, suggesting positive sentiment among investors. Based on this and the IPO's price band of Rs 221, the estimated listing price is anticipated to be Rs 271 per share, representing a potential gain of 22.62 percent per share.
Various brokerage firms have recommended investors to "Apply" for the IPO, including Arihant Capital Markets Ltd, BP Equities (BP Wealth), Dilip Davda, and Swastika Investment Ltd. However, Capital Market has maintained a "Neutral" stance, while Axis Capital and Keynote Capitals Ltd have refrained from rating the IPO.
JG Chemicals IPO aims to raise Rs 251.19 crore through a book-built issue, comprising a fresh issue of 75 lakh shares worth Rs 165.00 crore and an offer for sale of 39 lakh shares worth Rs 86.19 crore.
With the subscription period open until March 7, 2024, the IPO's allotment is scheduled for finalization on Monday, March 11, 2024. The listing on both BSE and NSE is slated for Wednesday, March 13, 2024.
The IPO price band is set at Rs 210 to Rs 221 per share, with a minimum lot size of 67 shares. Retail investors are required to make a minimum investment of Rs 14,807, while for NII, the minimum lot size investment is 14 lots (938 shares), amounting to Rs 207,298, and for bNII, it is 68 lots (4,556 shares), amounting to Rs 1,006,876.
Centrum Capital Limited, Emkay Global Financial Services Ltd, and Keynote Financial Services Ltd are the book-running lead managers, with Kfin Technologies Limited serving as the registrar for the issue.
The proceeds from the IPO will be utilized for various purposes, including debt repayment for BDJ Oxides, funding for an R&D center in Andhra Pradesh, and long-term working capital needs, in addition to supporting general corporate purposes.
