Zinc oxide maker JG Chemicals on January 6 informed that it has filed preliminary documents with capital markets regulator SEBI to raise funds through an initial public offering (IPO).
As per its Draft Red Herring Prospectus (DRHP), the IPO comprises fresh issues of equity shares 202.50 crore and Offer for Sale (OFS) of 57 lakh equity shares by its existing promoter group shareholders.
Vision Projects & Finvest Private Limited will sell 36.40 Lakh shares, Suresh Kumar Jhunjhunwala (HUF) will sell 12.70 Lakh shares, Anirudh Jhunjhunwala (HUF) will sell 6.50 Lakh shares and Jayanthi Commercial Limited will offer 1.40 Lakh equity shares pursuant to the OFS.
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In addition, the firm is looking at pre-IPO placement of equity shares in aggregate 40 crore or secondary sale of 28.50 lakh equity shares by the selling shareholders or a combination thereof. If such placement is made, the fresh issue size or offer-for-sale portion will be reduced.
The firm said the proceeds from the new issue will be used for investment in its physical subsidiary, BDJ Oxides. 45 crores in repayment of loan taken by its branch, Rs 5.31 crore will be used to set up the R&D centre. 65 crore will be used to meet the long-term working capital requirements of its physical branch.
will also use 35 crores for funding the long-term working capital requirements of the company and other general corporate objectives.
JG Chemicals is the largest consumer of its product and also supplies to major paint manufacturers, footwear players and cosmetics players in the country.
Centrum Capital Limited, MK Global Financial Services Limited and Keynote Financial Services Limited are the book-running lead managers to the issue.
The equity shares of the company are proposed to be listed on both BSE and NSE.
With agency inputs.
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