Jesons Industries IPO: Company gets SEBI nod for its public issue; here are top 10 things investors must know

Jesons Industries IPO: Mumbai-based manufacturer Jesons Industries has received an approval from Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO), the company informed via a press release.

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Investors looking to invest in this issue must know these top 10 things about the company and the IPO;

1) Amount to raise: The Jason Industries will be raising Rs 900 crore via the IPO, as per the Draft Red Herring Prospectus (DRHP) filed with the market regulator.

2) Objective of the IPO: The proceeds from the new share offering will be used to the tune of Rs 90 crore to repay/prepay in full or part of borrowings taken out by its subsidiary, as well as for general corporate purposes.

3) IPO issue size: According to the draft red herring prospectus (DRHP), the IPO will consist of a fresh issue of up to Rs 120 crore.

4) Offer details: The IPO will consist of a fresh issue of up to Rs 120 crore, a reservation of up to 77,000 equity shares for employees, and an offer for sale of up to 12,157,000 equity shares by Dhiresh Shashikant Gosalia, a promoter entity with 86.53 percent while the rest is with individual promoters like Madhavi Dhiresh Gosalia, Ravina Gaurav Shah and Jhelum Dhiresh Gosalia, as per DRHP.

5) Offer for eligible employees: The IPO offers a reservation of up to 77,000 equity shares for employees.

6) Lot size and minimum & maximum order: The IPO offers an offer for sale of up to 12,157,000 equity shares by Dhiresh Shashikant Gosalia, a promoter entity with 86.53 percent while the rest is with individual promoters like Madhavi Dhiresh Gosalia, Ravina Gaurav Shah and Jhelum Dhiresh Gosalia, as per DRHP.

7) Further equity shares: The company, in collaboration with the issue's lead bankers, may contemplate issuing further equity shares, including a private placement of up to Rs 24 crore. The size of the new issue will be reduced if this placement is accomplished.

8) Book Running Lead Manager and registrar: The issue's book running lead managers are Axis Capital Limited and JM Financial Limited, with Link Intime serving as the registrar.

9) Company details and operations:  Jesons sells its SCE and PSA products to companies like Berger Paints, Indigo Paints, Kamdhenu Paints, JSW Paints, Nippon Paints, Shalimar Paints, Cosmos Twisters, Cellotape, Mexim Adhesives, Sarvodaya Industries, Storm Infracon, and SMI Coated Products in India, as well as Apollo Paints, Kansai Nerolac, Moon Star Paints, Caparol Paints Furthermore, it also supplies SCE products to various players in the construction chemicals industry such as Forsoc Chemicals, SIKA India.

10) Revenue: Jesons Industries’ revenues from operations increased by 20.45 per cent from Rs 901.37 crore in fiscal 2020 to Rs 1,085.72 crore in fiscal 2021, primarily from the supply of manufactured products in domestic and export markets, raw material trading, and other operating income, while net profit increased by 213.25 percent from Rs 92.88 crore in fiscal 2020 to Rs 29.65 crore in fiscal 2021.