Zinc oxide manufacturer JG Chemicals closed its maiden public issue on a strong note as investors picked 22.69 crore equity shares as against the IPO size of 81.68 lakh shares, resulting into 27.78 times subscription on March 7, the final day of bidding.
Non-institutional investors were at the forefront to support the issue by buying 46.32 times the allotted quota, followed by qualified institutional buyers who picked 32.09 times the portion set aside for them, while retail investors bid 17.43 times the reserved portion.
The JG Chemicals IPO opened for subscription on March 5, with a price band at Rs 210-221 per share. The demand for the issue remained strong from day 1.
The company, which produces more than 80 grades of zinc oxide, intends to garner Rs 251.19 crore through its initial public offering at the upper price band, comprising a fresh issuance of equity shares worth Rs 165 crore and an offer-for-sale (OFS) of 39 lakh equity shares worth Rs 86.19 crore by promoters.
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Out of the fresh issue proceeds, Rs 91 crore will be invested in its material subsidiary BDJ Oxides. Further, Rs 30 crore will be spent for long-term working capital requirements of the company and the remaining will be kept for general corporate purposes.
With the closing public issue, JG Chemicals, which caters to several industries such as tyre & other rubber products, ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, speciality chemicals, and lubricants, will finalise the basis of allotment of IPO shares by March 11 and credit equity shares to the demat accounts of successful investors by March 12.
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The trading in the firm's equity shares will commence on the bourses with the effect from March 13.
JG Chemicals IPO shares were available at around 10-15 percent premium in the grey market, the unofficial market for trading in IPO shares till the listing, the market observers said.
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