Jesons Industries Refiles Papers For IPO With Rs 300-Crore Fresh Issue
The equity shares are proposed to be listed on the National Stock Exchange and BSE Ltd.
Jesons Industries Ltd. on Friday refiled its preliminary papers with the Securities and Exchange Board of India to raise funds through an initial public offering. The public offer will include fresh issue of shares worth Rs 300 crore and an offer for sale of 94.60 lakh shares, according to the draft red herring prospectus.
The equity shares are proposed to be listed on the National Stock Exchange and BSE Ltd. Dhiresh Shashikant Gosalia is the only promoter of the company offloading shares in the offer for sale.
Motilal Oswal Investment Advisors Ltd. and IIFL Capital Services Ltd. are the book-running lead managers for the issue and MUFG Intime India Pvt. will be the registrar of the issue.
The Mumbai-based company may consider a further issue of equity shares including a private placement aggregating up to Rs 60 crore. If such placement is completed, the fresh issue size will be reduced.
Of the proceeds, Rs 165 crore from the fresh issue of shares will be utilised for the partial or full repayment of certain outstanding borrowings incurred by the company and its subsidiaries.
Additionally, Rs 77.90 crore will be allocated for capital expenditure, specifically to fund investments in the company’s wholly owned subsidiary, Jesons Innovative Polymers Pvt. This investment will support the establishment of machine lines for a new adhesives project, including solvent-based adhesives and flexible packaging adhesives, as well as for general corporate purposes.
The firm had first filed for an IPO with a fresh issue of Rs 120 crore and an offer for sale of 1.22 crore shares in November 2021.
Jesons Industries is a manufacturer of coating emulsions for the paint sector and water-based pressure sensitive adhesives in tape and label segments. The company commands a 27% share of the non-captive domestic market in this segment during fiscal 2024. It holds a 35% market share in India’s water-based pressure-sensitive adhesives for tapes and labels.
As of Sept. 30, 2024, Jensons Industries' portfolio included 210 products marketed under well-established brands. The company holds a patent for a long-acting biocidal composition and its preparation process.
Jensons generates a substantial portion of its revenue from direct customers, while also maintaining a network of 62 distributors across India and international markets. As of the fiscal 2024, the firm's average relationship tenure with its top 10 customers was approximately nine years.
For fiscal 2024, Jensons reported revenue from operations of Rs 1,496.23 crore. Net profit for the fiscal increased by 15.4%, rising to Rs 56.59 crore, compared to Rs 49.04 crore in financial year 2023. For the six months ending Sept. 30, 2024, revenue from operations reached Rs 727.91 crore, with net profit after tax at Rs 31.18 crore.
