Jesons Industries Ltd, a contract manufacturer of specialty coating emulsions and water-based pressure sensitive adhesives, has filed a draft prospectus with the Securities and Exchange Board of India to float an initial public offering.
The IPO comprises a fresh issue of Rs 120 crore and a sale of 12.15 million shares by controlling shareholder Dhiresh Gosalia.
The total IPO size is estimated to be Rs 800-900 crore ($107-120 million), two people in the know told The Capital Quest. This may value the company around Rs 3,100-3,500 crore, The Capital Quest’s estimates show.
Jesons will join nearly half a dozen listed peers such as Aarti Industries, which commands a market capitalisation of Rs 32,850 crore, followed by Vinati Organics (Rs 20,100 crore), Galaxy Surfactants (Rs 10,440 crore), Fine Organics (Rs 10,725 crore), and Apcotex Industries (Rs 1,953 crore).
Gosalia’s stake may roughly dilute to 62% after the IPO from 86.53% at present. Members of Gosalia family and relatives own the remaining 13.3% stake, resulting in 100% promoter shareholding.
In all, promoter holding will drop to roughly 75% after the IPO, making Jesons compliant with regulatory guidelines of minimum 25% public shareholding in a listed company.
The Mumbai-based company has appointed JM Financial and Axis Capital as merchant bankers to arrange the share sale.
Incorporated in October 1999, Jesons makes emulsions and adhesives for use in the tape and label segments. Its products are used by industries such as paints, packaging, and chemicals for construction, textiles, leather, carpet and paper.
The company operates six factories and sells 170 products under various brands such as Bondex, Rdymix, Coviguard, Blue Glue, INDTAPE, and Polytex.
Jesons counts Berger Paints, Indigo Paints, Kamdhenu Paints, JSW Paints, Nippon Paints, Shalimar Paints, Apollo Paints, Kansai Nerolac, Moon Star Paints, and Caparol Paints as its key clients operating in the paint industry.
The special category emulsion vertical accounts for about 30% market share by value, the company claims. The company exports its products to more than 50 countries. Exports account for one-third of its overall revenue.
For the fiscal year ended March 2021, the company reported a consolidated net profit of Rs 92.88 crore on revenue from operations of Rs 1,085.7 crore.
For the three months ended June 2021, it reported a net profit of Rs 54 crore on revenue of Rs 438.42 crore, as per its draft prospectus.