J.G. Chemical Limited IPO
i. J.G. Chemical is India’s largest zinc oxide manufacturer in terms of production and revenue for zinc oxide manufacturing through French process, which is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in Americas, Europe and Asia. The market share of the Company is around 30%. They sell over 80 grades of zinc oxide and are among the top ten manufacturers of zinc oxides globally.
ii. Their product caters to a wide spectrum of industrial applications, including in the rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, speciality chemicals, lubricants, oil & gas and animal feed.
iii. Owing to the legacy of over four decades in manufacturing businesses, the company benefits from its experience in catering to a wide array of customers and they have built a long-standing relationship with customers across end-user industries in the tyres, ceramics, rubber, paints, cosmetics and batteries industry. Over the last three years, they marketed and sold its product to over 200 domestic customers and over 50 global customers in more than 10 countries.
iv. In India, tyre industry accounts for 70% of rubber consumption (Source: CARE Report) and the companies in the tyre industry are the largest consumers of our product.
v. Along with being suppliers to 9 out of top 10 global tyre manufacturers and to all of the top 11 tyre manufacturers in India, they also supply to leading paints manufacturers, footwear players and cosmetics players in India
Competitive Strengths
i. Leading market position with a diversified customer base.
ii. High entry barriers in key end-use industries
iii. Strong and consistent financial performance
Objects of the J.G. Chemical Limited IPO:
J.G. Chemical Limited IPO Details:
Open Date: | Mar 05 2024 |
Close Date: | Mar 07 2024 |
Total Shares: | 11,366,063 |
Face Value: | ₹ 10 Per Equity Share |
Issue Size: | 251.19 Cr. |
Lot Size: | 67 Shares |
Issue Price: | ₹ 210 - 221 Per Equity Share |
Listing At: | NSE,BSE |
Listing Date: | Mar 12 2024 |
Promoters And Management:
Financials of J.G. Chemical Limited IPO:
Particular (In Million) | Mar-21 | Mar-22 | Mar-23 |
Equity Share Capital | 12.2 | 12.2 | 317.2 |
Reserves | 1,073 | 1,514 | 1,759 |
Borrowings | 745 | 939 | 704 |
Trade Payables | 72 | 53 | 84 |
Other Liabilities | 198 | 123 | 114 |
Total Liabilities | 1,015 | 1,115 | 901 |
Net Block | 224 | 224 | 353 |
Capital Work in Progress | 0.4 | 74 | 9 |
Investments | 86 | 85 | 30 |
Other Assets | 33 | 22 | 23 |
Total NC Assets | 344 | 404 | 415 |
Receivables | 898 | 948 | 1,156 |
Inventory | 486 | 883 | 1,038 |
Cash & Bank | 52 | 81 | 49 |
Other Assets | 320 | 326 | 320 |
Face value | 10 | 10 | 10 |
Particular (In Million) | Mar-21 | Mar-22 | Mar-23 |
Sales | 4,353 | 6,128 | 7,846 |
Raw Material Cost | 3,454 | 5,063 | 6,369 |
Purchases of Stock In Trade | 5 | 5 | 0 |
Change in Inventory | 31 | -109 | -28 |
Employee Cost | 103 | 133 | 148 |
Other Expenses | 325 | 475 | 602 |
Other Income | 51 | 102 | 96 |
Depreciation | 23 | 27 | 34 |
Interest | 51 | 63 | 50 |
EBITDA | 486 | 664 | 851 |
EBITDA Margin | 11.17% | 10.83% | 10.85% |
Profit before tax | 412 | 574 | 767 |
Tax | 124 | 143 | 199 |
Net profit | 288 | 431 | 568 |
NPM (%) | 6.54% | 6.92% | 7.15% |
Particular (In Million) | Mar-21 | Mar-22 | Mar-23 |
Cash From Operating Activity | |||
Profit From Operation | 460 | 638 | 862 |
Receivable | -398 | -50 | -211 |
Inventory | -31 | -396 | -156 |
Payable | 71 | -61 | -2 |
Loans And Advances | -84 | 94 | 13 |
Working Capital Changes | -442 | -413 | -355 |
Direct Taxes | 92 | 157 | 195 |
Net Cash Inflow from Operating Activity | -73 | 68 | 312 |
Cash from Investing Activity | |||
Fixed assets purchased | -54 | -90 | -99 |
Fixed assets sold | 0.4 | 3 | 0.2 |
Investments purchased | -155 | -76 | -178 |
Investment sold | 150 | 103 | 225 |
Dividends received | 1 | 1 | 0.1 |
Other investing items | 1 | 4 | 3 |
Net cash inflow from investing activities | -56 | -54 | -49 |
Cash from Financing Activity | |||
Proceeds from shares | 0 | -51 | 0 |
Proceeds from borrowings | 301 | 148 | 40 |
Repayment of borrowings | -81 | -26 | -276 |
Intrest paid fin | -51 | -74 | -50 |
Net Cash Flow | 40 | 11 | -23 |
Comparison With Peers:
Name of the Company | Revenue (In Crore) | PAT (In Crore) | EPS ( in Rs) | P/E | CMP | Mcap (In Crore) |
J.G.Chemicals Limited | 785 | 57 | 14.49 | 15.2 | 221 | 866 |
Rajratan Global Wire Limited | 895 | 100 | 19.72 | 46.1 | 653 | 3,317 |
NOCIL Limited | 1,617 | 149 | 8.95 | 36.7 | 263 | 4,389 |
Yasho Industries Limited | 670 | 64 | 56.41 | 43.3 | 2,100 | 2,394 |
Lead Manager of J.G. Chemical Limited IPO:
Registrar of J.G. Chemical Limited IPO:
Company Address:
Discussion on J.G. Chemical Limited IPO:
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