Mumbai-based Jesons Industries, which is one of the leading manufacturers of 'specialty coating emulsions' (SCE) and water-based 'pressure sensitive adhesives' (PSA) in tape and label segments in terms of sales in India, with a 30% market share as a leading SEC supplier to the Indian Paint Sector, has filed 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).

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The shares of the company are proposed to be listed in the BSE and the NSE. Now, there are some important factors about the company that the interested investors must know. They are as follows:

1) According to DRHP, Jesons Industries' IPO comprises equity shares of the face value of Rs 5 each comprising a fresh issue aggregating 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 Dhiresh Shashikant Gosalia, a promoter entity, with 86.53 percent pre-offer equity share capital in the company.

2) At present, individual promoters Madhavi Dhiresh Gosalia, Ravina Gaurav Shah, Jhelum Dhiresh Gosalia, Usha Shashikant Gosalia, Madhuri Madhusudan Mehta and Parul Rajesh Mody combined holds a 13.47 per cent stake in the company.

3) Furthermore, the company is 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 24 crore. If such placement is completed, the fresh issue size will be reduced.

4) It has to be noted that the proceeds from the fresh issuance of shares will be used to extent of Rs 90 crore to repay/prepay in full or part, of borrowings availed by its subsidiary besides general corporate purposes.

5) The revenues of Jesons Industries from operations increased by 20.45 per cent from Rs 901.37 crore in fiscal 2020 to Rs 1,085.72 crore in fiscal 2021 primarily includes revenue from supply of manufactured products in domestic as well as export markets, trading of raw materials, and other operating income, while its net profit jumped 213.25 per cent to Rs 29.65 crore for fiscal 2021 from Rs 92.88 crore for fiscal 2020.

6) The company has a strong foothold in high-growth markets across Asia-Pacific, Middle East and Africa, for both SCE and PSA products and one of the largest exporter of Polymers of Vinyl Acetate and Acrylic Polymers which are used in SCEs and PSAs, from India in Fiscal 2021. It has exported 6,687 tons of Polymers of Vinyl Acetate and 38,888 tons of Acrylic Polymers during Fiscal 2021, which is 52.9% and 36.1% respectively of the total export of the same from India.

 7) It has one of largest range of products in SCEs and PSAs product categories according to the F&S report represented in its DRHP. Its products are used in various end user industries, such as paints, packaging, and chemicals for construction, textiles, leather, carpet and paper.

8) Jesons supplies its SCE and PSA products to various reputed players in the domestic paint industry such as 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, and from the global paints industry such as Apollo Paints, Kansai Nerolac, Moon Star Paints, Caparol Paints, Lalan Printing and Packaging, Tuftape, Well Accessories, and Western Paper Industries.

9) In addition to that the company also supplies SCE products to various players in the construction chemicals industry such as Forsoc Chemicals, SIKA India.

10) Axis Capital Limited, and JM Financial Limited are the book running lead managers to the issue, while Link Intime will be the registrar.