JG Chemicals Limited

JG Chemicals Limited, incorporated in 1975 and headquartered in Kolkata, is a specialty chemicals manufacturer that produces zinc oxide using the French process, the technology adopted by most major global producers. The company makes more than 80 grades of zinc oxide, serving a wide range of end industries including tyres and rubber, ceramics, pharmaceuticals, batteries, electronics, paints and agrochemicals, with customers spread across more than ten countries. The company runs three manufacturing units, two in the Kolkata region (Jangalpur and Belur) and one at Naidupeta in Andhra Pradesh, and counts several leading global tyre makers among its customers. Over the three years to FY23, revenue rose from roughly Rs 435 crore to about Rs 785 crore while profit after tax grew from around Rs 29 crore to close to Rs 57 crore, with the company maintaining a profit margin near 7 percent through the period. JG Chemicals raised Rs 251.19 crore through its initial public offering in March 2024, made up of a fresh issue of Rs 165 crore and an offer for sale of Rs 86.19 crore, and its shares were admitted to trading on the NSE and BSE. Ahead of listing, the company placed shares with anchor investors including Massachusetts Institute of Technology, Carnelian Structural Shift Fund, PineBridge Global Funds and SBI General Insurance Company. Proceeds from the fresh issue were earmarked for setting up a new R&D centre at the Naidupeta facility, funding working capital needs and general corporate purposes, alongside the company's stated plan to expand into pharmaceutical grade zinc oxide.

Ahead of the issue opening, JG Chemicals raised about Rs 75 crore from anchor investors through an allotment of roughly 34.1 lakh shares at the IPO's upper price of Rs 221. Massachusetts Institute of Technology was the largest participant, taking around 18.1 lakh shares worth about Rs 40 crore, with the remaining allocation going to investors including Carnelian Structural Shift Fund, PineBridge Global Funds and SBI General Insurance Company.