Mumbai-based Jesons Industries, one of the leading manufacturers of coating emulsions to the paint sector and water-based pressure sensitive adhesives in tape and label segments, in terms of sales value, in India, according to a CRISIL Report, has refiled its draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO).
The IPO with a face value of Rs 5 each is a mix of a fresh issue aggregating up to Rs 300 crore and an offer for sale of 9.46 million equity shares by Dhiresh Shashikant Gosalia. The Offer includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.
Additionally, the company, in consultation with the lead bankers to the issue 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.
Proceeds from the fresh issuance of shares will be used to extent of Rs 165 crore will be used for repayment/prepayment, in full or in part, of certain outstanding borrowings availed by the Company and/or its Subsidiaries, Rs 77.90 crore for funding of capital expenditure through investment in its wholly owned subsidiary, Jesons Innovative Polymers Private Limited, for setting up of machine lines for the new adhesives project - solvent based adhesives and flexible packaging adhesives, and general corporate purposes.
The Issue is being made through the book-building process, wherein not more than 50% of the Issue is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively.
Jensons Industries caters to a diverse range of end-user industries, including paints, packaging, furniture manufacturing, construction, tiles, textiles, leather chemicals, carpet chemicals, and paper chemicals.
It is a key supplier of coating emulsions to the Indian paint sector, commanding a 27% share of the non-captive domestic market in this segment during Fiscal 2024. Additionally, it holds a 35% market share in India's water-based pressure-sensitive adhesives for tapes and labels.
Since 2008, Jensons Industries has established itself as a prominent exporter of coating materials and adhesives, reaching over 48 countries as of September 30, 2024. The company has built a strong presence in high-growth regions such as Asia-Pacific, the Middle East, and Africa. It offers one of the most extensive product ranges in coating materials and adhesives amongst Indian manufacturers.
According to a CRISIL report cited in its DRHP, it is India's largest exporter of acrylic polymers for coating materials and adhesives, holding a 33% share of total exports.
As of September 30, 2024, its portfolio comprised of 210 products marketed under well-known brands such as Bondex®, Rdymix®, Coviguard®, Blue Glue®, INDTAPE®, and Polytex®. Jensons holds a patent for a long-acting biocidal composition and its preparation process and its current pipeline consists of 22 products under development.
Over the past three financial years and the six months ended September 30, 2024, Jensons Industries launched 42 new products across industries such as woodworking, RDP, and formulated construction chemicals, with 26 of these introduced during Fiscal 2024 and the first half of Fiscal 2025.
Jensons Industries derives a significant portion of its revenue from direct customers while maintaining a network of 62 distributors across India and its export markets. The average relationship tenure with its top 10 customers, as of the fiscal year ended March 31, 2024, is approximately nine years.
Its revenues from operations stood at Rs 1496.23 crore in fiscal 2024. Profit after tax net profit jumped 15.40% to Rs 56.59 crore for fiscal 2024 from Rs 49.04 crore for fiscal 2023. For the six months ended September 30,2024, revenue from operations stood at Rs 727.91 crore and profit after tax stood at Rs 31.18 crore.
Motilal Oswal Investment Advisors Limited, and IIFL Capital Services Limited are the book running lead managers to the issue, while MUFG Intime will be the registrar. The shares of the company are proposed to be listed on NSE and BSE. |
