Investors subscribe JG Chemicals IPO 2.46 times on first day of bidding

The initial public offer of JG Chemicals got subscribed 2.46 times on the first day of subscription on Tuesday.

The Rs 251.2 crore-initial share sale of the zinc oxide manufacturer received bids for 2,00,55,244 shares against 81,68,714 shares on offer, as per NSE data.

The portion for Retail Individual Investors (RIIs) got subscribed 3.62 times while the quota for non institutional investors fetched 2.90 times subscription. The Qualified Institutional Buyers (QIBs) part received 2 per cent subscription.

The Initial Public Offer (IPO) has a fresh issue of up to Rs 165 crore and an offer for sale of up to 39 lakh equity shares.

Price range for the offer is Rs 210-221 a share.

JG Chemicals on Monday said it has collected over Rs 75 crore from anchor investors.

Proceeds from the fresh issue to the tune of Rs 91 crore will be utilised for investing in JG Chemicals' material subsidiary BDJ Oxides and Rs 35 crore will be used for funding the long-term working capital requirements of the company. Besides, a portion will be used for general corporate purposes.

The Kolkata-based firm is India's largest zinc oxide manufacturer in terms of production and revenue. It sells over 80 grades of zinc oxide and is among the top ten manufacturers of zinc oxides globally.

Centrum Capital, Emkay Global Financial Services and Keynote Financial Services are the managers to the offer.

Equity shares of the company are proposed to be listed on both BSE and NSE.