India's JG Chemicals unexpectedly drops in trading debut

JG Chemicals

13/03/2024 06:20

** JG Chemicals  JGCH.NS  down 10.2% at 198.5 rupees in
trading debut vs IPO price of 221 rupees
    ** Zinc oxide manufacturer opened at 209 rupees and has
stayed below IPO price since
    ** Expectations were for a "moderate gain of around 10%,"
says Shivani Nyati, head of wealth at Swastika Investmart
    ** Says competition and JG's heavy reliance on cyclical
rubber, tyre industries might have dampened investor enthusiasm
    ** 2.51 bln rupee-IPO had 2/3rd fresh-share issue and was
oversubscribed by 27.78x last week
    ** JGCH's profit jumped 37.3% in year ended March 2023,
while rev rose 28%
    ** At current price, JG valued at 7.78 bln rupees (~$94 mln)
 
 ($1 = 82.8680 Indian rupees)

 (Reporting by Rama Venkat in Bengaluru)
 ((ramavenkat.raman@thomsonreuters.com; https://twitter.com/ramavenkat0607;))