Jesons Industries Ltd. filed a DRHP with SEBI for about Rs. 800–900 crore. The offering consists of a fresh issue of about Rs. 120 crore and an offer to sell up to 12,157,000 equity shares. According to the DRHP, Dhiresh Shashikanth Gosalia, a promoter with 86.53% equity share capital in the company, is selling these shares.
The company is considering a private placement of up to Rs. 24 crore in shares. If this occurs, the sum will be deducted from the new issue value. JM Financial Ltd. and Axis Capital Ltd. are the issue’s bookrunning lead managers. Jesons Industries Ltd is currently owned by Madhavi Dhiresh Gosalia, Ravina Gaurav Shah, Jhelum Dhiresh Gosalia, Usha Shashikanth Gosalia, Madhuri Madhusadan Mehta, and Parul Rajesh Mody.
Objectives of the issue
- Rs.90 crore from the net proceeds are to be used to repay and prepay the debt availed by the company and its subsidiary, Jesons Techno Polymers LLP
About Jesons Industries Ltd
Jesons Industries Ltd. is the major maker of specialty coating emulsions and water-based pressure-sensitive adhesives in the tape and label markets in the country. As of FY21, the firm is the top SEC supplier to India’s paint sector, accounting for 30% of the market share in terms of sales value. The company’s products are utilized in a variety of industries, including paints, packaging, and chemicals for leather, textiles, carpets, and paper.
As of June 20, 2021, Jesons Industries had a portfolio of 170 products under several brand names, including Bondex, Rdymix, Coviguard, Blue Glue, INDTAPE, and Polytex. Their R&D team is made up of 27 highly qualified and talented scientists. As of June 30, 2021, 111 of the 170 product types manufactured were specialty products, accounting for 65.29% of the overall product portfolio. The company began exporting in 2008 and has already exported to over 50 countries worldwide. Exports accounted for 36.62% of sales in the first quarter ending June 30, 2021.
Jensons Industries has six manufacturing facilities: two in Daman, one in Roorkee, one in the Chennai Metropolitan Region, one in Mundra, and one in Vapi. Their SCE products are supplied to well-known domestic businesses such as Berger Paints, Indigo Paints, Kamdhenu Paints, JSW Paints, Nippon Paints, Shalimar Paints, and a few large worldwide firms like Apollo Paints, Kansai Nerolac, Moon Star Paints, and Caparol Paints. Jenson Industries’ PSA goods are supplied and sold to reputable domestic companies such as Cosmos Twisters, Cellotape, and Storm Infracon, and the products are also supplied to worldwide companies such as Tuftape, Well Accessories, and Western Paper Industries.
Jesons Industries Ltd Financial Status
| Particulars (In Rs cr except %) | Q1 ended 30 June, 2021 | FY21 | FY20 | FY19 |
|---|---|---|---|---|
| EBITDA | 73.73 | 128.8 | 47.5 | 47.9 |
| EBIT | 77.21 | 132.11 | 47.22 | 47.1 |
| NWC | 211.23 | 172 | 92.3 | 85.15 |
| ROCE | 84.12% | 41.65% | 25.61% | 30.77% |
| ROE | 74.10% | 42.13% | 18.67% | 18.92% |
| ROA | 30.90% | 17.35% | 8.57% | 8.04% |
| EBITDA Margin(%) | 16.82% | 11.87% | 5.27% | 5.22% |
| PAT Margin(%) | 12.38% | 8.55% | 3.29% | 2.70% |
Competitive Analysis: Market Peers
| Company | ROA | ROCE | ROE | Fixed Asset Turnover |
|---|---|---|---|---|
| Fine Organics | 13.38% | 19.13% | 17.82% | 5.11x |
| Galaxy Surfactants | 15.65% | 24.68% | 25.51% | 3.36x |
| Aarti Industries Ltd | 7.49% | 13.70% | 16.15% | 0.98x |
| Vinati Organics | 16.96% | 19.25% | 19.08% | 1.11x |
| Apcotex Industries | 10.41% | 19.35% | 15.87% | 3.62x |
| BASF | 11.08% | 27.07% | 36.47% | 10.25x |
| Jesons Industries Ltd | 17.35% | 41.65% | 42.13% | NA |
Jesons Industries Ltd IPO Key Points
Strengths
- Jesons Industries has a very diverse portfolio along with customized customer solutions which cater to a large and rapidly growing market. The company has one of the largest varieties of products in the SCE and PSA product category. In the last 3 fiscal years, the company has managed to launch 113 products
- The company is one of the largest players in the SCEs and PSAs segment with their customer base spanning over the key geographical locations. The company has a strong hold in growing economies like Asia- Pacific, Middle East and Africa
- Their manufacturing facilities are very strategically located in order to enable an efficient supply chain management and exports. They have 6 manufacturing facilities which provide for the domestic market as well as exports
- The company has a very diversified customer base spanning across various industries like the paints industry, packaging, and chemicals for the paper, leather and carpet industry
Risks
- The demand for the products of Jesons’s Industries is highly dependent on the demand from the end-user industries. If there is any downtrend in demand from that end, then that will materially affect the business operations
- Any unanticipated shutdowns, slowdowns or prolonged disruptions in the manufacturing facilities will adversely affect the operations of the company
- Foreign exchange fluctuation risks could negatively affect the financials and operations of the company
- The highly competitive market that the company operates in is open to new entrants and this leads the company to face pricing pressures which could adversely affect the growth prospects and business of the company
Jesons Industries Limited IPO FAQs :
Q1. What is Jesons Industries Limited IPO?
Ans. A fresh issue of Rs. 600 crores and an offer for sale (OFS) of 2,19,66,841 equity shares would be included in the Fusion Microfinance IPO. The ultimate price range for the initial public offering will determine the size of the offer.
Q2. When will Jesons Industries Limited IPO allotment be available?
Ans. There is no announcement regarding the date of allotment.
Q3. What will be Jesons Industries Limited IPO lot size?
Ans. Details not available.
Q4. When will Jesons Industries Limited IPO open for subscription?
Ans. Details not available.
Q5. What minimum lot size can retail investors subscribe to?
Ans. Retail investors need to apply for a minimum of one lot.
Q6. When is the Jesons Industries Limited IPO listing date?
Ans. Details not available.
Q7. Which exchanges will Jesons Industries Limited list on?
Ans. The IPOs will list on BSE and NSE.
Q8. When will Jesons Industries Limited list on exchanges?
Ans. Usually, it takes around ten business days from the last day of the subscription to list the IPOs on the exchange.
Q9. How will I receive shares?
Ans. Once you receive the IPO allotment, the shares will be credited to the Demat account.
Q10. Is it necessary to approve a UPI mandate request immediately?
Ans. You will have to approve the UPI mandate within T+1 days. The amount will not get debited immediately, but the bank will freeze the funds against the IPO bid until the UPI mandate expiry date.
Q12. Who is the director of Jesons Industries Limited?
Ans. SHREYAS MAHENDRA PATEL is the director of Jesons Industries Limited.
