JG Chemicals Limited

JG Chemicals Limited –IPO DETAILS 

Company Overview 

Established in 1975, JG Chemicals Limited specializes in manufacturing zinc oxide using the French process. With a diverse product line comprising over 80 grades, the company caters to various industrial sectors including ceramics, paints, pharmaceuticals, cosmetics, electronics, batteries, agrochemicals, fertilizers, specialty chemicals, lubricants, oil, gas, and animal feed. Operating three manufacturing units located in Jangalpur and Belur (both in Kolkata, West Bengal) and Naidupeta (in Nellore District, Andhra Pradesh), the Naidupeta facility stands as the largest, operated by the Material subsidiary.  

All manufacturing sites hold ISO 45001:2018 and ISO 14001:2015 certifications, with ISO 9001:2015 accreditation. Serving over 200 local and 50 international clients across 10 countries, the company maintains a workforce comprising 112 permanent employees, alongside over 100 workers and apprentices, as of December 31, 2023. 

Objective of the IPO 

Here are a few quick reasons why company is going public:  

1. Repayment or pre-payment, whether in full or in part, of all or certain borrowings utilized by the Material Subsidiary. 

2. Financing capital expenditure needs for establishing a research and development center located in Naidupeta, Andhra Pradesh (R&D Centre). 

3. Catering to the long-term working capital needs of the Material Subsidiary. 

4. Allocation of funds for general corporate purposes.   

Company Financials 

Key Performance Indicator 

Pros 

1. Holding a prominent market position, coupled with a diversified customer base. 

2. Facing significant entry barriers within crucial end-use industries. 

3. Demonstrating resilience through strong and consistent financial performance. 

4. Cultivating enduring relationships with customers and suppliers, bolstered by a reliable supply chain. 

5. Supported by a seasoned and committed management team. 

Cons 

1. The company's business operations are heavily reliant on its material subsidiary, BDJ Oxides Private Limited. 

2. Operating within a competitive industry, the company encounters numerous challenges. 

3. The company's operations are predominantly linked to the rubber and tire industry, with limited diversification across other application industries. Pending litigations involving the company, its subsidiary, and certain directors are a source of concern. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”