The JG Chemicals IPO has been oversubscribed by 6.4 times on March 6, the second day of bidding, as investors bought 5.22 crore equity shares against an issue size of 81.68 lakh equity shares.
Non-institutional investors and retail investors were at the forefront to boost the IPO, buying 9.64 times and 8.32 times the portions set aside for them, while qualified institutional buyers picked 45 percent shares of the reserved portion.
The zinc oxide manufacturer will be closing its Rs 251.2-crore public issue on March 7. The IPO is a mix of 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.
The price band for the issue, which opened for subscription on March 5, has been fixed at Rs 210-221 per share.
The Kolkata-based company is going to invest Rs 91.06 crore out of the net fresh issue proceeds in its material subsidiary BDJ Oxides. Further, Rs 35 crore will be used for its long-term working capital requirements and the balance fresh issue money will be kept for general corporate purposes.
JG Chemicals, which enjoyed 30 percent market share of zinc oxide in FY22, supplies products to several industries such as rubber, ceramics, paints & coatings, pharmaceuticals & cosmetics, electronics & batteries, agro-chemicals & fertilizers, speciality chemicals, lubricants, oil & gas and animal feed.
Further, it supplies products to 9 out of top 10 global tyre manufacturers and all of the top 11 tyre manufacturers in India.
Meanwhile, the JG Chemicals IPO shares were available at more than 20 percent premium over the upper price band, in the grey market, the market observers said. The grey market is an unofficial platform wherein the IPO shares can be bought and sold till the listing.
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