Impact of bloodbath in mid-, small-cap stocks: JG Chemicals closes 16% down on debut

The impact of bloodbath in mid- and small-cap stocks on concerns of high valuations was also reflected in new listing as JG Chemicals' shares corrected more than 16 percent on debut day, March 13.

The stock opened 5.4 percent lower on the NSE at Rs 209, against issue price of Rs 221, and extended downtrend as the day progressed. It touched an intraday low of Rs 181.30, before closing the debut session at Rs 184.80, down 16.38 percent with volume of 78.2 lakh equity shares.

On the BSE, the stock settled at Rs 184.65, declining 16.45 percent with volume of 5.02 lakh equity shares.

The valuation concerns raised by the capital markets regulator SEBI weighed on the markets on Wednesday as the Nifty Midcap 100 index tanked 4.4 percent and Smallcap 100 index plunged 5.3 percent with breadth largely in favour of bears.

The zinc oxide manufacturer launched its Rs 251.2-crore public issue last week and received 27.78 times subscription during March 5-7.

The IPO comprised of fresh issue of Rs 165 crore worth shares and an offer-for-sale of 39 lakh equity shares worth Rs 86.19 crore by promoters. The price band for the public issue was Rs 210-221 per share.

JG Chemicals manufactures more than 80 grades of zinc oxide which are used in several industries such as pharmaceuticals and cosmetics, ceramics, electronics and batteries, paints and coatings, agrochemicals and fertilizers, specialty chemicals, and lubricants.

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