Jesons Industries, a leading manufacturer of specialty coating emulsions (SCE) and water-based pressure sensitive adhesives, has filed draft red herring prospectus to float its maiden public issue to raise Rs 800-900 crore.
The initial public offering (IPO) comprises a fresh issuance of shares worth Rs 120 crore, and an offer-for-sale of more than 1.21 crore equity shares by promoter Dhiresh Shashikant Gosalia. The offer includes a reservation of 77,000 equity shares for Jasons employees, according to the papers filed with the national markets watchdog Securities and Exchange Board of India (Sebi).
Mumbai-based Jesons may also consider a pre-IPO placement issue to raise Rs 24 crore. If the said placement is completed, the IPO size will be reduced accordingly, as per the prospectus.
Market sources pegged the issue size in the range of Rs 800-900 crore. The proceeds from the fresh issue will be used to pare debts and in general corporate purposes.
Jesons is now a 100 percent promoter-owned company. Promoter Dhiresh Shashikant Gosalia holds 86.53 percent stake in it, while the rest is with individual promoters like Madhavi Dhiresh Gosalia, Ravina Gaurav Shah and Jhelum Dhiresh Gosalia.
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Jesons Industries is one of the biggest specialty coating emulsion (SEC) suppliers to the Indian paints sector with about 30 percent market share in the segment as of FY21 in terms of sales value. Its products are used in paints, packaging, and chemicals for construction, textiles, leather, carpet and paper.
The company also exports specialty coating emulsions and water-based pressure sensitive adhesives since 2008 and has a global footprint of exports to more than 50 countries as of June 2021.
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As of June 2021, it had a portfolio of 170 products marketed under the brands like Bondex, Rdymix, Coviguard, Blue Glue, INDTAPE, and Polytex.
Jesons Industries in FY21 reported a massive 213.3 percent growth in profit at Rs 92.88 crore over the previous year. Revenue from operations at Rs 1,086 crore grew by 20.5 percent. Profit in the quarter ended June 2021 was at Rs 54.27 crore on revenue of Rs 438.43 crore, as per the prospectus.
Axis Capital and JM Financial are appointed as the book running lead managers to the planned public issue.
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