The JG Chemicals IPO has seen a great demand from investors who bought 2.01 crore equity shares on the first day of bidding, March 5, against the issue size of 81.68 lakh equity shares. This resulted into a 2.47 times subscription.
Retail investors as well as non-institutional investors led the charge, buying 3.64 times and 2.9 times their reserved portions, while qualified institutional buyers picked 2 percent shares of the part set aside for them.
Founded in 1975, the zinc oxide manufacturer aims to raise Rs 251.19 crore through its initial public offering at the upper price band.
The IPO is a mix of fresh issue of Rs 165 crore by the company, and an offer-for-sale (OFS) of 39 lakh shares worth Rs 89.19 crore by promoters Vision Projects & Finvest, Jayanti Commercial, Suresh Kumar Jhunjhunwala (HUF), and Anirudh Jhunjhunwala (HUF).
Also read: RK Swamy IPO day 2: Issue subscribed 6.01 times, retail portion booked 18.31x
The price band for the IPO, which closes on March 7, has been fixed at Rs 210-221 per share.
Kolkata-based JG Chemicals that caters to several industries such as ceramics, paints and coatings, pharmaceuticals and cosmetics, electronics and batteries, agrochemicals and fertilisers, and oil and gas, already raised Rs 75.36 crore via anchor book.
Massachusetts Institute of Technology, Carnelian Structural Shift Fund, Pinebridge Global Funds and SBI General Insurance Company were the investors participated in the anchor book.
The company will invest Rs 91 crore out of the fresh issue proceeds in its material subsidiary BDJ Oxides, Rs 35 crore for long-term working capital requirements, and remaining for general corporate purposes.
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