Neogen Chemicals IPO description – Neogen Chemicals is a leading producer of bromine-based, and lithium-based, specialty chemicals.  Specialty chemicals, including bromine and lithium-based compounds, are widely used as pharmaceutical intermediates, agrochemical intermediates, engineering fluids, electronic chemicals, polymers additives, water treatment chemicals, construction chemicals and flavours and fragrances. Additionally, certain specialty chemicals find application in multiple industries.
The company commenced business operations in 1991, at its Mahape, Navi Mumbai manufacturing facility with a few Bromine Compounds and Lithium Compounds. Over the years, it has expanded its range of products and, as on 28 February 2019, it manufactured an aggregate of 198 products comprising 181 organic chemicals and 17 inorganic chemicals.
More recently, the company has also commenced contract manufacturing where, the product is developed under confidentiality for a single customer using the process know-how and the technical specifications provided by the customer.
Promoters of Neogen Chemicals – Haridas Thakarshi Kanani and Harin Haridas Kanani
| Neogen Chemicals IPO details | |
| Subscription Dates | 24 – 26 April 2019 |
| Price Band | INR212 – 215 per share |
| Fresh issue | INR70 crore |
| Offer For Sale | 2,900,000 shares (INR61.48 – 62.35 crore) |
| Total IPO size | INR131.48 – 132.35 crore |
| Minimum bid (lot size) | 65 shares |
| Face Value | INR10 per share |
| Retail Allocation | 35% |
| Listing On | NSE, BSE |
Objects of Neogen Chemicals IPO
- Prepayment or repayment of all or a portion of certain borrowings – INR20.5 crore
- Early redemption of 9.8% FRCPS – INR11.5 crore
- Long term working capital – INR20 crore
- General corporate purposes
- Issue expenses
| Neogen Chemicals’ financial performance (in INR crore) | ||||||
| Â | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 | 9M FY2019 |
| Total revenues | 80.3 | 92.5 | 109.0 | 121.8 | 164.7 | 159.7 |
| Total expenses | 74.1 | 84.4 | 100.6 | 110.3 | 147.4 | 142.8 |
| Comprehensive income | 3.7 | 5.0 | 5.1 | 7.2 | 10.5 | 12.3 |
| Net margin (%) | 4.6 | 5.4 | 4.7 | 5.9 | 6.4 | 7.7 |
More about Neogen Chemicals
Neogen Chemicals Contact Details
Neogen Chemicals Limited
1002, 10th Floor, Dev Corpora Bldg,
Opp. Cadbury Junction, Off Pokhran Road No. 2,
Khopat, Thane – 400 601 Phone: +91 22 2549 7300
Email: [email protected]
Website:Â www.neogenchem.com
Registrar of Neogen Chemicals IPO
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai – 400 083 Phone: +91 22 4918 6200
Fax: +91 22 4918 6195
Email: [email protected]
Website:Â http://www.linkintime.co.in
Valuation of Neogen Chemicals (FY2018)
Earnings Per Share (EPS): INR5.25
Price/Earnings (PE ratio): 40.38 – 40.95
Return on Net Worth (RONW): 20.97%
Net Asset Value (NAV): INR25.03 per share
Neogen Chemicals IPO Subscription Details
| Category | Shares offered | Subscription (no. of times, at 6 pm) | ||
| Day 1 | Day 2 | Day 3 | ||
| QIB | 1,228,094 | 0.00 | 0.94 | 30.49 |
| NII | 930,283 | 0.10 | 1.13 | 113.88 |
| Retail | 2,170,661 | 0.49 | 3.18 | 15.66 |
| Â | Â | Â | Â | Â |
| Total | 4,329,038 | 0.27 | 2.10 | 40.97 |
Neogen Chemicals IPO Allotment Status
Neogen Chemicals IPO allotment status is now available on Link Intime’s website. Click on this link to get allotment status.
Listing Performance of Neogen Chemicals Limited
IPO Opening Date: 24 April 2019
IPO Closing Date: 26 April 2019
Finalisation of Basis of Allotment: 3 May 2019
Initiation of refunds: 6 May 2019
Transfer of shares to demat accounts: 7 May 2019
Listing Date: 8 May 2019
Listing Price on NSE: INR251 per share (up 17% from IPO price)
Closing Price on NSE:Â INR263.55 per share (up 22.58% from IPO price)
Caution to be exercised in this IPO as the price is too high! Business is doing well but company is asking too much for this growth when others are available at better prices. GMP is fine but I’ll rather wait for listing and then buy at a discount.
Chemicals is the hot sector as chinese are facing problems. Lot of growth coming for Indian companies. Go ahead and subscribe.
What is the latest premim in grey market for neogen?
Listing will be in T group, why to risk capital?
True sir. Your comments have been helping us on this forum.
Better not to subscribe… there will be better IPO coming this year.