JG Chemicals' Rs 251.2 crore IPO subscribed 6.39 times on Day 2 of offer

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 top ten manufacturers of zinc oxides globally

The initial share sale of JG Chemicals received 6.39 times subscription on the second day of bidding on Wednesday.

The Rs 251.2 crore-initial public offer received bids for 5,21,75,446 shares against 81,68,714 shares on offer, according to data available with the NSE.

The quota for non-institutional investors fetched 9.63 times subscription while the Retail Individual Investors (RIIs) part got subscribed 8.30 times. The category for Qualified Institutional Buyers (QIBs) received 45 per cent subscription.

The zinc oxide manufacturer's 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.

Its price range is fixed at 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.