Jasons Industries files DRHP with SEBI: Company to issue fresh shares worth ₹ 300 crore for IPO, OFS of 94.6 lakh shares also included

Mumbai-based Jasons Industries has filed a draft red herring prospectus (DRHP) with stock market regulator SEBI to raise funds through an IPO. For this initial public offer with a face value of Rs 5, the company will issue fresh shares worth Rs 300 crore.

At the same time, the company’s promoter Dhiresh Shashikant Gosalia will sell 94.6 lakh shares through Offer for Sale i.e. OFS. With this, Jason Industries, owned by Gosalia family, can raise Rs 60 crore in the IPO round. However, approval is yet to be received from SEBI.

The company provides services in different sectors including paint, packaging, furniture manufacturing.

Jasons Industries is one of the largest manufacturers of water-based pressure sensitive adhesives in the coating emulsion, tape and label segments for the paint sector in terms of sales value in India. The company has a market share of 35% in India in water based pressure sensitive adhesives for tapes and labels.

Jasons Industries serves various sectors like paint, packaging, furniture manufacturing, construction, tiles, textile, leather chemicals, carpet chemicals and paper chemicals.

Proposal to list shares in NSE-BSE

Motilal Oswal Investment Advisors Limited and IIFL Capital Services Limited are the book-running lead managers to the issue and MUFG Intime India Private Limited will be the registrar to the issue. It is proposed to list the equity shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

What is DRHP?

DRHPs are documents that contain essential information about the company planning an IPO. It is filed with SEBI.

It provides important information about the company’s finances, its promoters, the risks of investing in the company, reasons for raising funds, how the funds will be used, among other things.

What is IPO?

When a company issues its shares to the general public for the first time, it is called Initial Public Offering i.e. IPO. The company needs money to expand its business. In such a situation, instead of taking loan from the market, the company raises money by selling some shares to the public or issuing new shares. For this the company brings IPO.