Jesons Industries, a Mumbai-based manufacturer of specialised coating emulsions ("SCE") and water-based pressure sensitive adhesives ("PSA"), has acquired SEBI approval to undertake its initial public offering (IPO).
According to the draft red herring prospectus (DRHP), 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.
In addition, 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.
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.
According to the F&S report included in its DRHP, it has one of the greatest product ranges in the SCEs and PSAs product categories. Paints, packaging, and chemicals for building, textiles, leather, carpet, and paper are just a few of the sectors that employ its goods.
In Fiscal 2021, the firm will be one of the major exporters of Polymers of Vinyl Acetate and Acrylic Polymers, which are used in SCEs and PSAs, from India, with a solid footing in high-growth markets spanning Asia-Pacific, the Middle East, and Africa for both SCE and PSA products. During Fiscal 2021, it shipped 6,687 tonnes of Vinyl Acetate Polymers and 38,888 tonnes of Acrylic Polymers, accounting for 52.9 percent and 36.1 percent of total exports, respectively.
In the absence of direct listed comparable peers, Jesons Industries was compared to Apcotex Industires Ltd, Fine Organic Industries Ltd, BASF India Ltd, Galaxy Surfacants Ltd, Aarti Industries Ltd, and Vinati Organics Ltd in the listed space on the basis of product properties, end customer profile, and export mix and scale.
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.
Jesons Industries' revenues from operations increased by 20.45% 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.
The issue's book running lead managers are Axis Capital Limited and JM Financial Limited, with Link Intime serving as the registrar.