About Company’s Business:
They stand as the largest producer of zinc oxide in India, leading both in production volume and revenue within the zinc oxide manufacturing sector through the French process. This particular method is the predominant technology used worldwide for zinc oxide production, having been embraced by major manufacturers across the Americas, Europe, and Asia. Offering a diverse range of over 80 zinc oxide grades, they hold a position among the top ten global manufacturers of this essential compound.
About the Industry:
Ranked sixth globally in chemical sales, India contributed USD 105 billion, making up 2.7% of the total sales during the year. Over the past five fiscal years, from 2018 to 2022, zinc oxide production in India has consistently ranged between 100,000 to 115,000 tonnes. The estimated market size for Indian zinc oxide during this period is approximately â‚ą18,000 million to â‚ą20,000 million. The industry is characterized by a limited number of organized players who hold a significant market share, primarily due to high entry barriers discouraging new entrants.
Key Financial Information (â‚ą in million):
| Particulars | Nine months period ended December 31, 2023 | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 |
|---|---|---|---|---|
| Equity Share capital | 317.20 | 317.20 | 12.20 | 12.20 |
| Net Worth (excludes non-controlling interests) | 2,178.56 | 1,998.96 | 1,476.58 | 1,084.77 |
| Total income | 4,910.99 | 7,941.88 | 6,230.47 | 4,404.05 |
| Profit after tax for the year/period | 185.10 | 567.93 | 431.26 | 287.99 |
| Earnings per share Basic and Diluted (â‚ą) | 5.60 | 17.32 | 12.61 | 7.39 |
| Net asset value per Equity Share (in â‚ą) | 68.68 | 63.02 | 46.55 | 34.20 |
| Borrowings (including non-current and current borrowings) | 249.68 | 703.51 | 939.41 | 744.50 |
Objective of the Issue:
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Investment in our Material Subsidiary, viz. BDJ Oxides for:
(i) repayment or pre-payment, in full or in part, of all or certain borrowings availed by our Material Subsidiary 250.00
(ii) funding capital expenditure requirements for setting up of a research and development centre situated in Naidupeta, Andhra Pradesh; 60.58
(iii) funding its long-term working capital requirements -
Funding long-term working capital requirements of our Company.
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General corporate purposes.
For more detailed information, you can refer to the IPO Prospectus (RHP) filed by the company.
| Important information regarding the IPO | |
|---|---|
| Open Date | Tuesday, March 5, 2024 |
| Close Date | Thursday, March 7, 2024 |
| Issue Size | â‚ą251.19 Crores |
| Price | â‚ą210 to â‚ą221 per share |
| Lot Size | 67 Shares |
| Basis of Allotment | Monday, March 11, 2024 |
| Initiation of Refunds | Tuesday, March 12, 2024 |
| Credit of Shares to Demat | Tuesday, March 12, 2024 |
| Listing Date | Wednesday, March 13, 2024 |
How to apply for this IPO?
You can locate the redirection link to the IPO on the home screen of the Dhan App. Alternatively, you can access it by navigating to the “Money” Section at the bottom right and swiping right to reach the “IPO” Tab.
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