India’s Jesons Industries files initial papers for IPO
By Vinu Lal
11:56, 22 November 2021
India’s Jesons Industries, a manufacturer of specialty coating emulsions and water-based pressure sensitive adhesives in tape and label segments, has filed early papers for an initial sale of shares to the public, according to a web posting.
Jesons Industries plans to raise about INR8-9bn (£80-£90m) through its initial public offering (IPO), The Economic Times newspaper reported on Monday without disclosing the source of information.
The company is yet to finalise the per-share price and date of subscription for the IPO.
Fresh issue + OFS
The Mumbai-based company’s IPO would comprise a fresh issue of shares of INR1.2bn, a reservation of up to 77,000 shares for employees and an offer for sale (OFS) of up to 12.16 million shares, Axis Capital, a manager to the issue, said in the web posting.
Dhiresh Shashikant Gosalia, an investor in the company, would be offloading up to 12.16 million shares through the OFS, a (draft red herring prospectus) (DRHP), or early papers, showed.
At present, individual promoters Madhavi Dhiresh Gosalia, Ravina Gaurav Shah, Jhelum Dhiresh Gosalia, Usha Shashikant Gosalia, Madhuri Madhusudan Mehta and Parul Rajesh Mody hold a combined 13.47% stake in the company.
Additionally, the company would also consider a further issue of shares including a private placement totalling up to INR240m.
Use of proceeds
Jesons Industries would use INR900m from the proceeds to repay debts, and a yet-to-be-finalised amount for general business purposes. Apart from Axis Capital, JM Financial is another manager to the issue.
Jesons Industries’ products, specialty coating emulsions and pressure sensitive adhesives, are used in various end-user industries such as paints, packaging and chemicals for construction, textiles, leather, carpet and paper.
The firm supplies its products to various companies in the domestic paint industry such as Berger Paints, Indigo Paints, Kamdhenu Paints, JSW Paints and Nippon Paint, and firms in the construction chemicals industry such as Fosroc Chemicals and Sika India.