J G Chemicals makes weak debut; stock lists 5% below its issue price

J G Chemicals made a weak stock market debut with its shares getting listed at Rs 209, a 5 per cent discount to its issue price of Rs 221 per share on the National Stock Exchange (NSE). The stock of the specialty chemicals listed at Rs 211 on the BSE.

Post listing, the market price of J G Chemicals hit a high of Rs 213.75 and a low of Rs 201.90 in the intraday trade. At 10:02 AM, the stock was trading at Rs 206.05, 7 per cent below its issue price. In comparison, the S&P BSE Sensex was down 0.09 per cent at 73,597.

 

J G Chemicals' initial public offer (IPO) had received a healthy response from investors with the total subscription of 28.52 times. Individual investors portion was oversubscribed by 18.03 times, while Qualified Institutional Buyers (QIB) showed a subscription of 32.33 times, and Non-Institutional Investors (NII) a whopping 47.92 times.

J G Chemicals is India's largest zinc oxide manufacturer in terms of production and revenue for zinc oxide manufacturing. It uses French process for manufacturing, which is the dominant production technology for producing zinc oxide and has been adopted by all the major producers in America, Europe, and Asia.

The company's products cater to a wide range of industrial applications, including rubber (tyre & other rubber products), ceramics, paints & coatings, pharmaceuticals and cosmetics, electronics and batteries, agro chemicals and fertilisers, speciality chemicals, lubricants, oil and gas, and animal feed.

"J G Chemicals has a leading market position with a diversified customer base, being supplier to 9 out of top 10 global tyre manufacturers and to all the top 11 Indian tyre manufacturers. It enjoys long-term relationships with customers and suppliers, having robust supply chain with more than 250 customers in last three years along with focus on long term sustainability with environmental initiatives and safety standards," analyst at Anand Rathi Share and Stock Brokers said.

The company is expanding its footprints, diversifying products in new verticals, improving capacity utilisation with strong demand, and focusing on R&D to support complex chemistries and cost efficiencies, thereby improving the margin acceleration over the next few years, analysts said.

Bajaj Auto buyback subscribed seven times
 

Investors tendered nearly seven times more shares in the Rs 4,000-crore buyback prog­ramme of Bajaj Auto than what the country’s leading two-wheeler manufacturer intended to repurchase. Data provided by stock exchanges showed tendering of nearly 27.6 million shares by shareholders as against the maximum 4 million shares (1.41 per cent equity) it tended to buy. Shares of Bajaj Auto last closed at Rs 8,342, down 2.2 per cent over its previous day’s close. The company had fixed the buyback price of Rs 10,000, Rs 3,617, up 0.4 per cent. TCS fixed the price of Rs 4,150 per share — nearly 20 per cent higher than the last close — for the tender route buyback. Market observers said given the premium on offer shareholders tendered more shares than they were eligible for with the hope that a higher quantity will get accepted in case of an under subscription.

 
BS reporter
 

Social stock exchange to see more listings
 

Four more non-profit organisations will list on the social stock exchange (SSE) on Thursday taking the total number of listed entities to five. Ekalavya Foundation,Transforming Rural India Foundation, Mukti, and Swami Vivekananda Youth Movement are scheduled to list on Thursday. Newly-launched SSE initiative allows firms working for social causes to raise money through zero coupon zero principle bonds. Earlier in December 2023, the SSE saw its first listing when SGBS Unnati Foundation raised over Rs 1.8 crore from four investors.

BS reporter