Jesons Industries, a Mumbai-based manufacturer of specialised coating emulsions (SCE) and water-based pressure-sensitive adhesives (PSA), said it has acquired Sebi approval to undertake an initial public offering (IPO).
The size of the IPO is Rs 900 crore.
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 the promoter.
In addition, the company 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 pay in full or part of borrowings taken out by its subsidiary, as well as for general corporate purposes.
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. It also supplies SCE products to various players in the construction chemicals industry such as Forsoc Chemicals and SIKA India.
In the absence of direct listed comparable peers, Jesons Industries is compared to Apcotex Industires, Fine Organic Industries, BASF India, Galaxy Surfacants, Aarti Industries, and Vinati Organics in the listed space on the basis of product properties, end customer profile, and export mix and scale.
The book running lead managers for the issue are Axis Capital and JM Financial, with Link Intime serving as the registrar.