Jesons Industries IPO : 7 things to know about
Jesons Industries Ltd is a leading manufacturer of specialty coating emulsions (SCE) and water-based pressure sensitive adhesives. With its rather niche and de-risked business model, Jesons Industries Ltd has already filed draft red herring prospectus (DRHP) with SEBI in late November 2021.
As per the DRHP, Jesons Industries Ltd plans to float its maiden public issue to raise around Rs.800-900 crore. The approval from SEBI in the form of observations is still awaited.
1) Jesons Industries Ltd has filed for an IPO of the size of Rs.800 to Rs.900 crore with SEBI. The final approval is awaited, post which the company would go ahead with its IPO plans. The IPO comprises of a fresh issue of Rs.120 crore while the balance amount will be raised via an offer for sale of shares. The dates for the issue are yet to be firmed and now it is most likely to happen only in the next financial year.
2) The Jesons Industries IPO is expected to comprise of a fresh issuance of Rs.120 crore, and an offer-for-sale of over 1.21 crore equity shares by promoter Dhiresh Shashikant Gosalia. As part of the offer, the issue will also have reservation of 77,000 equity shares for the employees of Jesons Industries.
3) Jesons Industries Ltd will use the proceeds of the fresh issue component of Rs.120 crore to repay some of its debts to improve the solvency ratio of the company and also for general corporate purposes. In addition, Jesons Industries is also planning a pre-IPO placement of Rs.24 crore with key investors ahead of the IPO. If the pre-IPO placement is successful, then the size of the IPO offer would be reduced to that extent..
4) Jesons Industries is currently 100% owned by the promoter group; the Gosalia family. The bulk of the shares of Jesons Industries Ltd is held by the main promoters, Dhiresh Shashikant Gosalia with a holding of 86.53% in the company.
The balance 13.47% is split between the other family members which include Madhavi Dhiresh Gosalia, Ravina Gaurav Shah and Jhelum Dhiresh Gosalia. The IPO will result in reduction in the promoter stake and proportionate increase in the stake with the public.
5) Jesons Industries is a key domain specialist and is one of the biggest specialty coating emulsion suppliers to the Indian paints sector. Jesons has nearly 30% of the paint market share in India as of FY21 as measured by sales value.
The products manufactured by Jesons Industries are extensively used in paints, packaging and chemicals with applications in the construction, textiles, leather, carpet and paper industries. Jesons Industries also exports specialty coating emulsions and water-based pressure sensitive adhesives since 2008. Currently, Jesons Industries has a global footprint that is spread across over 50 countries in the world as of June 2021.
6) As of June 2021, Jesons had a massive portfolio comprising of 170 products. Some of the popular brands that Jesons Industries markets include Bondex, Rdymix, Coviguard, Blue Glue, INDTAPE and Polytex.
For the fiscal year ended March 2021, Jesons Industries reported a 213% growth in net profits which more than tripled to Rs.92.88 crore on a YoY basis. During the same period, the revenues from operations grew at a healthy clip of 20.5% to Rs.1,086 crore. The company has sustained the strong performance in the June 2021 quarter also.
7) The IPO of Jesons Industries Ltd will be lead managed by Axis Capital and JM Financial. They will act as the book running lead managers or BRLMs to the issue.
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