JG Chemicals IPO shares to make market debut today; can it deliver strong listing gain?

JG Chemicals is set to make its stock market debut on Wednesday. The company is likely to make a decent listing, even as its listing gains my fail to match the recent optimism, following a sharp drop in grey market premium (GMP) in the wake of muted listing trends.

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JG Chemicals was commanding a GMP of Rs 15, suggesting a listing pop of about 7 per cent. The grey market premium has halved in the last 24-36 hours after recent dull listings. The company commanded a GMP of Rs 60 a few days ago.
JG Chemicals sold its IPO in the price band of Rs 210-221 per share. The Kolkata-based zinc oxide player raised Rs 251.19 crore through its primary stake sale, which included a fresh share sale of up to Rs 165 crore and an offer-for-sale (OFS) of up to 39,00,000 shares.
JG Chemicals received a decent response for its IPO during the three-day bidding process, fetching an overall subscription of 27.78 times. The quota reserved for non-institutional bidders was subscribed 46.33 times while the one for qualified institutional bidders was booked 32.09 times. The portion reserved for retail investors was subscribed 17.44 times.
JG Chemicals was incorporated in 1975 and it produces more than 80 grades of zinc oxide in India. Its products have various industrial applications including ceramics, paints and coatings, pharma and cosmetics, electronics and batteries, agrochemicals, fertilisers, speciality chemicals, lubricants, oil & gas and animal feed among others.

Analysts tracking the issue were mostly positive on the issue. Emkay Global Financial Services, Centrum Capital and Keynote Financial Services are the book running lead managers of the JG Chemicals IPO, while Kfin Technologies is the registrar for the issue.