Jesons Industries, a manufacturer of speciality coating emulsions, has filed preliminary papers with capital markets regulator Sebi to raise an estimated Rs 800-900 crore through an initial share sale. The shares of the company are proposed to be listed on NSE and BSE.
Jesons Industries is one of the leading manufacturers of speciality coating emulsions (SCE) and water-based pressure-sensitive adhesives (PSA) in tape and label segments. Its products are used in various end-user industries, such as paints, packaging, and chemicals for construction, textiles, leather, carpet and paper.
The initial public offering (IPO) comprises a fresh issue of equity shares aggregating up to Rs 120 crore and an offer for sale (OFS) of up to 12,157,000 equity shares by promoter Dhiresh Shashikant Gosalia, according to the draft red herring prospectus (DRHP).
Jesons is currently a 100 percent promoter-owned company. Promoter Dhiresh Shashikant Gosalia holds 86.53 percent stake in it, while the rest is with individual promoters like Madhavi Dhiresh Gosalia, Ravina Gaurav Shah and Jhelum Dhiresh Gosalia.
The Mumbai-based company may consider the private placement of equity shares aggregating up to Rs 24 crore. If such pre-IPO placement is completed, the fresh issue size will be reduced. The public issue also includes a reservation of 77,000 equity shares for employees.
Proceeds from the fresh issuance of shares will be used to the extent of Rs 90 crore to repay/ prepay in full or part of borrowings, availed by its subsidiary besides general corporate purposes.
Axis Capital and JM Financial are the book running lead managers to the issue, while Link Intime is the registrar of the IPO.
The company has a strong foothold in high-growth markets across Asia-Pacific, the Middle East and Africa, for both SCE and PSA products.
Jesons Industries is one of the biggest speciality coating emulsion (SEC) suppliers to the Indian paints sector with about 30 percent market share in the segment as of FY21 in terms of sales value.
As of June 2021, it had a portfolio of 170 products marketed under the brands like Bondex, Rdymix, Coviguard, Blue Glue, INDTAPE, and Polytex.
Its revenues from operations increased by 20.45 per cent to Rs 1,085.72 crore in fiscal 2021 from Rs 901.37 crore in fiscal 2020, while its net profit jumped 213.25 per cent to Rs 29.65 crore from Rs 92.88 crore.
