JG Chemicals Limited IPO Message Board (Page 9)

May buy at listing day panic

No big buyer heard since morning

Thin volume around 18-20

After seeing such listing nowdays , listing should be muted.

​@MAMU Sir RK swamy ka kya hal h grey me koi buyer h ya nahi 🙏

RK SWAMY too lacking behind all the listing

It mainly deals in Zinc oxide, people who are familiar with chemical industry knows that the price of zinc oxide is continuously falling in the market as a result there's a pressure on the revenue. If the company has adequate safety guards then it should maintain it's operating profit margin. Doesn't matter if revenue falls but volume should go upwards to know whether company is growing or not. So for all those who are applying and are looking to have it in portfolio then do check whether they are growing in terms of volume and is the margin is sustained or not!

DYDD

Apply or not sr. Members 🙏pls tell us

https://www.moneycontrol.com/news/business/stocks/rbi-curbs-on-jm-financial-may-dry-up-ipo-funding-tame-subscriptions-12413171.html

Hello members! What is your view on the above article?
Are the primary market bull run will be affected for near future? (Low subscription, low gmp and low listing day gain)

May be bad for few weeks, but it's good news for IPO subscriber who were applying with own money. Now they would have better chances of allotment. Just be cautious on companies with bad fundamental which were riding IPO frenzy.

its bad for those who are taking loan to apply ipos. at least for few months own fund applicants wil get good chance of allotment

I am skipping.
Revenue and PAT down in current fiscal due to huge fall in zinc oxide price. Though IPO is coming at good valuation compared to peers, but listing gain is limited due to current bad sentiments in small cap and other IPOs listing.
Even listing loss is possible and this can not be hold for long term due to uncertainty of zinc oxide price.

Those who are 𝐧𝐨𝐭 applying, react here.
👍

I think such companies trade near low double digits valuation. But considering its a leader in market, shedding some premium wont hurt investors ,only if they are long players.
Certainly not for listing gains.
Lets see.

Cold sector, OFS with high valuation (greed of promotors), poor market sentiments (fear), period of political instability, Global war (military and economic). Take inference from above and apply at own risk.
Don't blame any analyst or co-investors lateron.

​@Vimal Garodia @Chhote Lal @UjwalG 
Hey guys! Could you please update your status for applying in RK Swamy & JG Chemicals..

​@Ipo HSL I am applying FF here..

​@Tejas Pandya 
Thank you Tejas Bhai for your timely given reply. 🙏🏻
Thanks to
@Seth. @MAMU @NeoLongus And also Thanks to all the experts. 🙏🏻

J G Chemicals IPO

Final Verdict

Small Risk Takers Can Apply For Long-term And
High Risk Takers Can Apply For Small Listing Gains

Highlights of the Issue :
Date : 5-7 March
Price Band : 210-221
M.cap : 866 cr
Size : 251.19 cr
Fresh - 165 cr
OFS - 86.19 cr

Objects Of The Issue :

1.Repayment Of Debt In Its Material Subsidiary BDJ Oxides - 25 cr

2.Funding CapEx For Setting Up New R&D Centre - 6 cr

3.Funding Long-term Working Capital Requirements in BDJ Oxide - 60 cr

4.Funding Long-term Working Capital in JG - 35 cr

5.GCP - 39 cr

Analysis :
1.The Working Capital Raised From the IPO Will Enable the company to remain debt free , As It will not need any External Debt

2.The Setting Up Of New Plant in Gujarat Which Will Cater A New Market Of Ceramics Can Diversify its Business And Open New Revenue Streams

3.The Expansion In South-East Asia in Coming Future Will Cater The Robust Demand From Chinese Tyre Manufacturers

The Earnings Projections Are Not At All Possible As The Business Is Completely Dependent Upon the
LME Zinc Prices And It's Tough To Predict Commodity Prices

Negatives :

1.This is A Commodity Business i.e Zinc ,
Any Volatility In Its Prices Directly Affects It's Business

2.The Zinc Prices Are Under Pressure Due To Weak Chinese Demand ,
And An Uncertainty About Those Prices Going Up To Previous Levels

3.Markets Always Hesitate To Give Premium Valuations To Such Commodity Businesses

4.As An Investor , An Investment Cannot Be Done On Uncertainty, Without Clarity From the Management

The Anchor Book Was Good

But I would suggest that only
Risk Takers Should Enter This One

​@newgen consultancy Thanks for all in all analysis. All worked out well.

Just 1 point - how is the Anchor book good. It has no MF / Insurance Companies / FII .
Just 4 anchor investors.

Many SME has more than this.

@newgen consultancy thanks 🙏sir ji for your valuable analysis and verdict. Keep updating and guiding us through ur final Verdict and analysis in future also. 🙏👏👍

Current GMP : 30

​@svh Ji, Absolutely right. Undoubtedly, FedEx seems to be their leader. Well trained to dodge small investors. Gloves-in-hand with operators.

@svh Please elaborate what did you mean by that particylarly that LM thing...!
How do you see its going to be?

QIB quota is compared to less from retail quota. Is it negative point?
I am newbie in cash market. So, it will be helpful for me to put some light on it.

Its completely normal to be in that way. Nothing to worry. Instead focus on how much that quota gets subscribed, higher it gets subscribed, more confidence gets built to apply in the IPO.

Any one want to join 20 lot category?

This is mainboard IPO, allotment is done application wise and not proportionate..

Off topic sorry for this

Have anyone gone through exicom BOA??
BNII no one got any allotment above minimum lot for BNII

there are very less no of applications received under other categories which caused it to eliminate from lottery.
8300 shares category is having only 11 application and rest are in single digit only..

Yes.I also observed.

TO ALL OUR SENIOR MEMBERS / NEW GEN CONSULTANCY

Would be grateful to know what is the GMP of this IPO and whether Buyers or Sellers
Thanks and regards

​@scbkc Check this link..

https://www.investorgain.com/report/live-ipo-gmp/331/all/

JGC का टायर दौड़ेगा या नहीं?? (particularly for listing gains)

Off topic- Need suggestion on opening minor account . Which broker and bank can help . Mostly need is IPO application

​@MVP Is Fyers allow to sell IPO alloted share in pre opening session ? Specially in minor account

Yes

JG CHEMICALS LIMITED IPO

Positives:-

(1) Strong Business Presence
(2) Fair Pricing
(3) Healthy Financial

Negatives:-

(1) Use Of Ipo Money In Debt Repayment
(2) Depending On Top 10 Customers

90% of Indian IPOs since 2022 have used part of their proceeds to reduce debt....

​@Hrishikeh Suppose you are the company and I am the IPO allotee. I gave you 100rs to scale the company with it. But you are clearing off your debt of 40rs with it. Now you only have 60rs to scale the biz.
There is also a bright side of this scenario that you reduced the burden of repayment of debt and interest on it also relieved the mental stress that comes with repayment.

Which is better in terms of listing gains and allotment.

JG chemicals or Gopal snacks?