JG Chemicals IPO opens today: GMP, subscription status to be examined

JG Chemicals Limited has officially initiated its public offering today, and the subscription window will be open until March 7, 2024. Interested investors have the opportunity to subscribe to the initial public offering from Tuesday to Thursday. JG Chemicals has specified the price band for the IPO at ₹210 to ₹221 per equity share, intending to list on both the BSE and NSE. The company aims to raise ₹251.19 crore, allocating ₹165 crore for fresh share issuance and reserving ₹86.19 crore for the Offer for Sale (OFS) route, resulting in a combination of fresh shares and OFS.

Before the opening of the IPO subscription, reports indicate a grey market premium (GMP) of ₹52 for JG Chemicals IPO. The company has already secured ₹75.35 crore from anchor investors. As of 11:42 AM on the first day of bidding, the public issue has achieved an overall subscription rate of 0.74 times, with the retail portion oversubscribed at 1.25 times and the Non-Institutional Investor (NII) portion subscribed 0.53 times.

Crucial details about the JG Chemicals IPO include a lot size of 67 company shares, an anticipated allotment date of March 8, 2024, and the appointment of KFin Technologies as the official registrar. The proposed listing on both BSE and NSE is tentatively scheduled for March 12, 2024. Providing a positive assessment, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, recommends a ‘subscribe’ stance.

He underscores the company’s optimistic prospects, attributed to its involvement in Zinc Oxide and substantial revenue from the automotive sector. The IPO is perceived as attractively valued for primary market investors, and Kejriwal advises considering participation based on individual time perspectives, anticipating a respectable premium at listing with the potential for further upside post-listing.