JG Chemicals IPO to debut on bourses tomorrow; here’s what GMP hints ahead of listing

On the whole, JG Chemicals IPO received overwhelming response from its retail and non institutional investors (NII). On the last day, the subscription status was 27.78 times, as per BSE data. The retail investors portion was subscribed 17.44 times, NII portion is booked 46.33 times, and Qualified Institutional Buyers (QIB) portion is booked 32.09 times, on the last day.

Also Read: JG Chemicals IPO allotment finalised today; latest GMP, 4 steps to check status

It reserved not more than 50% of the shares in the public issue for QIB, not less than 15% for NII, and not less than 35% of the offer is reserved for retail investors.

JG Chemicals IPO opened for subscription on Tuesday, March 5, and closed on Thursday, March 7. The price band was set in the range of ₹210 to ₹221 per equity share of the face value of ₹10. Investors could bid for a minimum of 67 equity shares and in multiples of 67 equity shares thereafter.

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Experts in the market believe that a flat to muted listing would be justified given the current state of the market, which is downcast, and the selling pressure in the mid- and small-cap sectors. Analysts predict JG Chemicals Ltd will maintain its key position in the zinc oxide market due to the company’s robust market position, diverse clientele, and strategic expansion activities.

Also Read: JG Chemicals IPO: GMP, subscription status, how to check allotment status

However, let’s check what does JG Chemicals IPO GMP price today signal ahead of listing.

JG Chemicals IPO GMP today or grey market premium is +28. This indicates JG Chemicals share price were trading at a premium of ₹28 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of JG Chemicals share price was indicated at ₹249 apiece, which is 12.67% higher than the IPO price of ₹221.

Based on last 14 sessions grey market activities, the current GMP ( ₹28) is showing signals towards the lower side. The lowest GMP is ₹0, while the highest GMP is ₹60, according to investorgain.com analysts.

‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.

Also Read: JG Chemicals IPO last bidding day today: Check GMP, subscription status, review, key dates, more. Should you subscribe?

JG Chemicals IPO details

JG Chemicals IPO, which is worth 251.19 crore, comprises a fresh issue of ₹165 crore, and an offer-for-sale (OFS) of up to 3,900,000 equity shares of face value of ₹10, aggregating to ₹86.19 crore, each by the promoters and other investors.

The selling shareholders are Vision Projects & Finvest Private Ltd (offloading up to 2,028,900), Jayanti Commercial Limited (selling up to 1,100 equity shares), Suresh Kumar Jhunjhunwala (HUF) (selling up to 1,260,000 equity shares), and Anirudh Jhunjhunwala (HUF) (offloading up to 610,000 equity shares).

The net proceeds will be used for the following purposes by the company: investing in the Material Subsidiary, BDJ Oxides; (i) repaying or prepaying all or some of the borrowings that the Material Subsidiary has taken out; (ii) financing the capital expenditures needed to establish a research and development centre in Naidupeta; and (iii) financing the extended working capital needs of the company.

The book running lead managers of the JG Chemicals IPO are Centrum Capital Limited, Emkay Global Financial Services Ltd, and Keynote Financial Services Ltd. The registrar of the offering is Kfin Technologies Limited.

Also Read: JG Chemicals IPO: Issue oversubscribed on day 2 led by retail investors, NIIs; check GMP

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 12 Mar 2024, 02:54 PM IST