JG Chemicals files draft IPO papers with Sebi to raise funds

JG Chemicals Ltd has filed a draft red herring prospectus with the Securities Exchange Board of India (Sebi) to raise funds through an initial public offering. The IPO consists of a fresh issue of Rs 202.50 crore and an offer-for-sale of up to 5.70 million shares by its existing shareholders and promoters. The OFS comprises up to 3.64 million shares by Vision Projects and Finvest Pvt Ltd, 1.4 lakh shares by Jayanti Commercial Ltd, 1.27 million shares by Suresh Kumar Jhunjhunwala (HUF) and 6.5 lakh shares by Anirudh Jhunjhunwalal (HUF). The proceeds from the fresh issue will be used for investment in its material arm BDJ Oxides. The company will use Rs 45 crore for repayment of debt, Rs 5.31 crore to set up a research and development centre, Rs 65 crore for funding its long-term working capital requirement for its subsidiary and Rs 35 crore for its own long-term working capital requirement.