{"id":4028,"date":"2024-03-16T04:47:23","date_gmt":"2024-03-16T04:47:23","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?p=4028"},"modified":"2025-02-27T10:40:01","modified_gmt":"2025-02-27T10:40:01","slug":"jg-chemicals-ipo-overview-key-details-financials-kpis-strengths-and-weaknesses","status":"publish","type":"post","link":"https:\/\/wp-api.pocketful.in\/blog\/jg-chemicals-ipo-overview-key-details-financials-kpis-strengths-and-weaknesses\/","title":{"rendered":"JG Chemicals IPO:\u00a0Overview, Key Details, Financials, KPIs, Strengths, and Weaknesses"},"content":{"rendered":"\n<p>In today\u2019s blog, we will uncover the details of JG Chemicals, a specialty chemical company that is coming up with an IPO and is engaged in manufacturing zinc oxide.<\/p>\n\n\n\n<p>Let\u2019s start with a deep analysis of the company\u2019s finances, details of the issue, strengths, and weaknesses.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/jg-chemicals-ipo-overview-key-details-financials-kpis-strengths-and-weaknesses\/#JG_Chemicals_IPO_Overview\" title=\"JG Chemicals IPO Overview\">JG Chemicals IPO Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/jg-chemicals-ipo-overview-key-details-financials-kpis-strengths-and-weaknesses\/#Details_of_the_Issue\" title=\"Details of the Issue\">Details of the Issue<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/jg-chemicals-ipo-overview-key-details-financials-kpis-strengths-and-weaknesses\/#Financial_Highlights\" title=\"Financial Highlights\">Financial Highlights<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/jg-chemicals-ipo-overview-key-details-financials-kpis-strengths-and-weaknesses\/#Strengths\" title=\"Strengths\">Strengths<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/jg-chemicals-ipo-overview-key-details-financials-kpis-strengths-and-weaknesses\/#Weaknesses\" title=\"Weaknesses\">Weaknesses<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/jg-chemicals-ipo-overview-key-details-financials-kpis-strengths-and-weaknesses\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wp-api.pocketful.in\/blog\/jg-chemicals-ipo-overview-key-details-financials-kpis-strengths-and-weaknesses\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-jg-chemicals-ipo-overview\"><span class=\"ez-toc-section\" id=\"JG_Chemicals_IPO_Overview\"><\/span>JG Chemicals IPO Overview<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Established in 1975, the enterprise is involved in the production of zinc oxide through the utilization of French technology. The company&#8217;s founders have over 50 years of combined expertise.&nbsp;<\/p>\n\n\n\n<p>In 1975, the business began operations in Kolkata with a small facility with a capacity of about 600 MTPA.<\/p>\n\n\n\n<p>The company&#8217;s clientele is dispersed across the globe; 200 of them are in India, while the remaining 50 are distributed across 10 nations. As of December 2023, the company&#8217;s total installed manufacturing capacity was 77040 MTPA. Its manufacturing facilities are located all throughout the nation, with the largest being at Naidupeta, Andhra Pradesh, and Jangalpur, Kolkata. The company employs 112 full-time employees and 47 contract workers.&nbsp;&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-cuate.png\" alt=\"Zinc Oxide\" class=\"wp-image-4031\" style=\"aspect-ratio:1.3333333333333333;object-fit:cover;width:417px;height:auto\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-cuate-1024x1024.png 1024w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-cuate-300x300.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-cuate-150x150.png 150w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-cuate-768x768.png 768w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-cuate-1536x1536.png 1536w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-cuate.png 2000w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-promoters\">Promoters<\/h3>\n\n\n\n<p>Suresh Jhunjhunwala, Anirudh Jhunjhunwala, and Anuj Jhunjhunwala are the company&#8217;s promoters and own 100% of the company.&nbsp;&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-details-of-the-issue\"><span class=\"ez-toc-section\" id=\"Details_of_the_Issue\"><\/span>Details of the Issue<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To raise INR 251.19 crore, JG Chemical is planning an IPO, which combines an offer for sale and a fresh issue. Of the total, INR 165 crores will be a fresh issue and INR 86.19 crores will be an offer for sale. 67 shares make up the market lot for the IPO, with an upper and lower price range of INR 221 and INR 210, respectively.&nbsp;<\/p>\n\n\n\n<p>The major details are as follows:<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><tbody><tr><td><strong>Face Value of Share<\/strong><\/td><td>INR 10 Rs<\/td><\/tr><tr><td><strong>Price Band<\/strong><\/td><td>INR 210 to INR 221 per share<\/td><\/tr><tr><td><strong>Market Lot<\/strong><\/td><td>67 Shares<\/td><\/tr><tr><td><strong>Total Fresh Issue Size<\/strong><\/td><td>165 Crores<\/td><\/tr><tr><td><strong>Total Offer for Sale<\/strong><\/td><td>86.19 Crores<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-timeline-of-ipo\">Timeline of IPO<\/h3>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><tbody><tr><td><strong>IPO Open Date<\/strong><\/td><td>5<sup>th<\/sup> March 2024<\/td><\/tr><tr><td><strong>IPO Close Date<\/strong><\/td><td>7<sup>th<\/sup> March 2024<\/td><\/tr><tr><td><strong>Finalization of Allotment<\/strong><\/td><td>11<sup>th<\/sup> March 2024<\/td><\/tr><tr><td><strong>Initiation of Refund &amp; Credit of shares into demat account<\/strong><\/td><td>12<sup>th<\/sup> March 2024<\/td><\/tr><tr><td><strong>Listing Date on NSE &amp; BSE<\/strong><\/td><td>13<sup>th<\/sup> March 2024<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-ipo-allotment-size\">IPO Allotment Size<\/h3>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Applicant<\/th><th class=\"has-text-align-center\" data-align=\"center\">Market Lot<\/th><th class=\"has-text-align-center\" data-align=\"center\">Share<\/th><th class=\"has-text-align-center\" data-align=\"center\">Amount (INR)<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Retailer (Min)<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">1<\/td><td class=\"has-text-align-center\" data-align=\"center\">67<\/td><td class=\"has-text-align-center\" data-align=\"center\">14,807<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Retailer (Max)<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">13<\/td><td class=\"has-text-align-center\" data-align=\"center\">871<\/td><td class=\"has-text-align-center\" data-align=\"center\">1,92,491<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Small High Net Worth Individual (Min)<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">14<\/td><td class=\"has-text-align-center\" data-align=\"center\">938<\/td><td class=\"has-text-align-center\" data-align=\"center\">2,07,298<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Small High Net Worth Individual (Max)<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">67<\/td><td class=\"has-text-align-center\" data-align=\"center\">4,489<\/td><td class=\"has-text-align-center\" data-align=\"center\">9,92,069<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Big High Net Worth Individual (Min)<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">68<\/td><td class=\"has-text-align-center\" data-align=\"center\">4,556<\/td><td class=\"has-text-align-center\" data-align=\"center\">1,00,68,876<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-objective-of-the-issue\">Objective of the Issue<\/h3>\n\n\n\n<p>The company plans to use the issue proceeds to establish a research facility in Naidupeta, Andhra Pradesh, prepay a portion of its debt, and invest in its subsidiary companies through BDJ oxides. Additionally, a portion of the earnings will be used to finance their working capital.&nbsp;<\/p>\n\n\n\n<p><strong>Read Also:<\/strong> <a href=\"https:\/\/www.pocketful.in\/blog\/pune-e-stock-broking-limited-ipo-key-details-business-model-financials-strengths-and-weaknesses\/\">Pune E-Stock Broking Limited IPO: Key Details, Business Model, Financials, Strengths, and Weaknesses<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-financial-highlights\"><span class=\"ez-toc-section\" id=\"Financial_Highlights\"><\/span>Financial Highlights<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-balance-sheet\">Balance Sheet<\/h3>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Particulars<\/th><th class=\"has-text-align-center\" data-align=\"center\">31<sup>st<\/sup> March 2023<\/th><th class=\"has-text-align-center\" data-align=\"center\">31<sup>st<\/sup> March 2022<\/th><th class=\"has-text-align-center\" data-align=\"center\">31<sup>st<\/sup> March 2021<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Non-Current Assets<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">41.455<\/td><td class=\"has-text-align-center\" data-align=\"center\">40.426<\/td><td class=\"has-text-align-center\" data-align=\"center\">34.364<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Current Assets<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">256.335<\/td><td class=\"has-text-align-center\" data-align=\"center\">223.715<\/td><td class=\"has-text-align-center\" data-align=\"center\">175.572<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Total Assets<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">297.790<\/td><td class=\"has-text-align-center\" data-align=\"center\">264.141<\/td><td class=\"has-text-align-center\" data-align=\"center\">209.937<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Total Equity<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">213.528<\/td><td class=\"has-text-align-center\" data-align=\"center\">156.638<\/td><td class=\"has-text-align-center\" data-align=\"center\">119.004<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Non-Current Liabilities<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">7.589<\/td><td class=\"has-text-align-center\" data-align=\"center\">5.833<\/td><td class=\"has-text-align-center\" data-align=\"center\">5.976<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Current Liabilities<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">76.673<\/td><td class=\"has-text-align-center\" data-align=\"center\">101.670<\/td><td class=\"has-text-align-center\" data-align=\"center\">84.956<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">(All the above-mentioned figures are in INR Crores)<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-income-statement\">Income Statement<\/h3>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Particulars<\/th><th class=\"has-text-align-center\" data-align=\"center\">31<sup>st<\/sup> March 2023<\/th><th class=\"has-text-align-center\" data-align=\"center\">31<sup>st<\/sup> March 2022<\/th><th class=\"has-text-align-center\" data-align=\"center\">31<sup>st<\/sup> March 2021<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Revenue from Operations<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">784.576<\/td><td class=\"has-text-align-center\" data-align=\"center\">612.830<\/td><td class=\"has-text-align-center\" data-align=\"center\">435.298<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Total Income<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">794.188<\/td><td class=\"has-text-align-center\" data-align=\"center\">623.047<\/td><td class=\"has-text-align-center\" data-align=\"center\">440.405<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Total Expenses<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">717.495<\/td><td class=\"has-text-align-center\" data-align=\"center\">565.601<\/td><td class=\"has-text-align-center\" data-align=\"center\">399.206<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Profit before tax<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">76.694<\/td><td class=\"has-text-align-center\" data-align=\"center\">57.446<\/td><td class=\"has-text-align-center\" data-align=\"center\">41.199<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Profit after tax<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">56.793<\/td><td class=\"has-text-align-center\" data-align=\"center\">43.126<\/td><td class=\"has-text-align-center\" data-align=\"center\">28.799<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">(All the above-mentioned figures are in INR Crores)<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-cash-flow-statement\">Cash Flow Statement<\/h3>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Particulars<\/th><th class=\"has-text-align-center\" data-align=\"center\">31<sup>st<\/sup> March 2023<\/th><th class=\"has-text-align-center\" data-align=\"center\">31<sup>st<\/sup> March 2022<\/th><th class=\"has-text-align-center\" data-align=\"center\">31<sup>st<\/sup> March 2021<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Net Cash flow from operating activities<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">31.166<\/td><td class=\"has-text-align-center\" data-align=\"center\">6.752<\/td><td class=\"has-text-align-center\" data-align=\"center\">(7.346)<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Cash flow from investing activities<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">(4.897)<\/td><td class=\"has-text-align-center\" data-align=\"center\">(5.415)<\/td><td class=\"has-text-align-center\" data-align=\"center\">(5.60)<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Cash flow from financing activities<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">(28.574)<\/td><td class=\"has-text-align-center\" data-align=\"center\">(0.190)<\/td><td class=\"has-text-align-center\" data-align=\"center\">16.955<\/td><\/tr><\/tbody><\/table><figcaption class=\"wp-element-caption\">(All the above-mentioned figures are in INR Crores)<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-kpis\">KPIs<\/h3>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">Particulars<\/th><th class=\"has-text-align-center\" data-align=\"center\">31<sup>st<\/sup> March 2023<\/th><th class=\"has-text-align-center\" data-align=\"center\">31<sup>st<\/sup> March 2022<\/th><th class=\"has-text-align-center\" data-align=\"center\">31<sup>st<\/sup> March 2021<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>EBITDA Margin<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">10.85%<\/td><td class=\"has-text-align-center\" data-align=\"center\">10.83%<\/td><td class=\"has-text-align-center\" data-align=\"center\">11.17%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Return on Equity (ROE)<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">30.50%<\/td><td class=\"has-text-align-center\" data-align=\"center\">30.64%<\/td><td class=\"has-text-align-center\" data-align=\"center\">24.23%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Debt Equity Ratio<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">0.34<\/td><td class=\"has-text-align-center\" data-align=\"center\">0.62<\/td><td class=\"has-text-align-center\" data-align=\"center\">0.69<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Profit after Tax Margin<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">7.24%<\/td><td class=\"has-text-align-center\" data-align=\"center\">7.04%<\/td><td class=\"has-text-align-center\" data-align=\"center\">6.62%<\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Return on Capital Employed (ROCE)<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\">29.38%<\/td><td class=\"has-text-align-center\" data-align=\"center\">25.83%<\/td><td class=\"has-text-align-center\" data-align=\"center\">25.27%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>Based on the 17.32 EPS for the fiscal year that ended in 2023, the PE on the upper price band comes out to be 12.75x, while the PE on the lower price band comes out to be 12.12x.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-strengths\"><span class=\"ez-toc-section\" id=\"Strengths\"><\/span>Strengths<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>1. <\/strong>The <strong>company has a monopoly in this industry<\/strong> because it is the only one in India producing zinc oxide.\u00a0<\/p>\n\n\n\n<p><strong>2.\u00a0<\/strong>The industry is protected from competition by having an <strong>extremely high entry barrier<\/strong>.<\/p>\n\n\n\n<p><strong>3. <\/strong>The company&#8217;s <strong>operating cash flow has expanded dramatically<\/strong> over the past year. In FY2022, OCF stood at 6.752 crores; by FY2023, it was 31.166 crores.\u00a0<\/p>\n\n\n\n<p><strong>4.<\/strong>\u00a0The <strong>company&#8217;s promoters have over 50 years of experience<\/strong> in this industry, and their expertise helps them achieve new heights.<\/p>\n\n\n\n<figure class=\"wp-block-image aligncenter size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"1024\" src=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-bro.png\" alt=\"JG chemicals monopoly\" class=\"wp-image-4032\" style=\"aspect-ratio:1.3333333333333333;object-fit:cover;width:408px;height:auto\" srcset=\"https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-bro-1024x1024.png 1024w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-bro-300x300.png 300w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-bro-150x150.png 150w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-bro-768x768.png 768w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-bro-1536x1536.png 1536w, https:\/\/cms-resources.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/Science-bro.png 2000w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-weaknesses\"><span class=\"ez-toc-section\" id=\"Weaknesses\"><\/span>Weaknesses<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>1.\u00a0<\/strong>The <strong>company&#8217;s main product is zinc oxide<\/strong>. Therefore, any decline in demand could harm the company&#8217;s bottom line.<\/p>\n\n\n\n<p><strong>2.<\/strong>\u00a0Since their profit after-tax margin has been stable over the last three years, <strong>any increase in input costs could hurt their profit margins.\u00a0<\/strong><\/p>\n\n\n\n<p><strong>3.\u00a0<\/strong>Given that the price of zinc oxide had a global correction in 2021, any additional <strong>price correction may affect their performance.\u00a0<\/strong><\/p>\n\n\n\n<p><strong>4.\u00a0<\/strong>The company&#8217;s business operations depend on the performance of its subsidiary, BDJ Oxides Private Limited; <strong>any decrease in the subsidiary company&#8217;s performance would have a detrimental impact on its operations.<\/strong><\/p>\n\n\n\n<p><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/gillette-india-case-study\/\">Gillette India Case Study: Business Model, SWOT Analysis, and Financial Overview<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>JG Chemical has a monopoly in the zinc oxide market, and the company&#8217;s main goals in raising money include paying off debt and investing in its subsidiary businesses. Nearly all of the world&#8217;s leading tire manufacturers are served by the company. The business&#8217;s performance is evident in its financial statements, where sales have grown by over 28% Y-o-Y, and profit has surged by 31% Y-o-Y.&nbsp;<\/p>\n\n\n\n<p>However, before making any investment decisions, investors are advised to carefully review all of the risk considerations associated with this initial public offering (IPO) and to keep their risk tolerance in mind.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-faqs\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\"><strong>When will JG Chemical IPO list?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">The listing date of the JG chemical IPO is 13<sup>th<\/sup> March 2024.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>What is the cut-off price of the JG Chemical IPO?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">The upper price band of 221 INR will be the cutoff price of the IPO.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>What does JG Chemical do?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">JG Chemical manufactures zinc oxide. Their products are used in industrial applications such as rubber tires, ceramics, paints &amp; coatings, etc.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>What is the market lot size of JG chemical IPO, and what will be the minimum amount required by an individual?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">The market lot of JG Chemical IPO is 67 shares, and the minimum investment amount required by a retail investor is 14,807 INR.<\/p><li style=\"list-style-type: none\"><h3 class=\"\"><strong>What is the promoter holding before the issue of the IPO?<\/strong><\/h3><p class=\"saswp-faq-answer-text\">The promoters hold a 100% stake in the company before the issue of the IPO.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>In today\u2019s blog, we will uncover the details of JG Chemicals, a specialty chemical company that is coming up with an IPO and is engaged in manufacturing zinc oxide. Let\u2019s start with a deep analysis of the company\u2019s finances, details of the issue, strengths, and weaknesses. JG Chemicals IPO Overview Established in 1975, the enterprise [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":4035,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"is_paper_insight":false,"paper_insight_image":0,"paper_insight_pdf":0,"paper_insight_ppt":0,"footnotes":""},"categories":[17,15],"tags":[],"class_list":["post-4028","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-case-study","category-investing"],"acf":{"freelancer":"Akash Gupta"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>JG Chemicals IPO:\u00a0Overview, Key Details, Financials, KPIs, Strengths, and Weaknesses - Pocketful<\/title>\n<meta name=\"description\" content=\"Read more to get a detailed analysis of JG Chemical IPO including its financials, strengths, and weaknesses.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"JG Chemicals IPO:\u00a0Overview, Key Details, Financials, KPIs, Strengths, and Weaknesses\" \/>\n<meta property=\"og:description\" content=\"Read more to get a detailed analysis of JG Chemical IPO including its financials, strengths, and weaknesses.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/wp-api.pocketful.in\/blog\/jg-chemicals-ipo-overview-key-details-financials-kpis-strengths-and-weaknesses\/\" \/>\n<meta property=\"og:site_name\" content=\"Pocketful\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Pocketful.HQ\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-16T04:47:23+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-02-27T10:40:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/wp-api.pocketful.in\/blog\/wp-content\/uploads\/2024\/03\/jg-chemicals-banner.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1497\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Pranit Mathur\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@Pocketful_HQ\" \/>\n<meta name=\"twitter:site\" content=\"@Pocketful_HQ\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Pranit Mathur\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"JG Chemicals IPO:\u00a0Overview, Key Details, Financials, KPIs, Strengths, and Weaknesses - 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