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Let’s have a detailed review of the company and analytics of the Neogen Chemicals IPO release date, IPO offer price, subscription, Neogen Chemicals Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

Neogen Chemicals Limited Company  is one of India’s leading manufacturers of bromine-based, and lithium-based, specialty chemicals.


Neogen Chemicals IPO Review & Ratings

IPO Ratings & Review
Criteria Ratings
Industry Sentiments 8.5/10
Industry Ranking 7.8/10
Company Background 7.9/10
Company Reputation 7.9/10
Competitive Edge 7.7/10
Financial Statements 7.8/10
Popularity Index 8.4/10
Promoters Reputation 7.7/10
Retail Appetite 7.9/10
Top Brokers Review 7.9/10
Overall Ratings 8.1/10
Star Ratings ★★★★☆

Summary of Neogen Chemicals IPO

Neogen Chemicals IPONeogen Chemicals Limited Company  is one of India’s leading manufacturers of bromine-based, and lithium-based specialty chemicals. The Specialty chemicals are those chemicals that impart different properties to a variety of products (i.e. the effect that specialty chemicals have varies based on the product) and have a high degree of value addition. These chemicals are, also generally, in the Indian context, manufactured in smaller volumes when compared to non-specialty chemicals. Neogen Chemicals IPO comprises of Fresh Issue aggregating up to Rs 70.00 Crores.

From FY 2013-14 to FY 2017-2018, as per the Restated Financial Statements,

  • The Net Worth of the Company is Rs. 1,800.53 Millions.
  • The Net Asset Value per Equity Share of Rs. 10 of the Company.

The Promoters of this company are  Haridas Thakarshi Kanani and Harin Haridas Kanani. The lead manager to the issue are  Inga Advisors Private Limited and the Registrar to this issue is Link Intime India Private Limited .


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    Neogen Chemicals IPO Date

    The opening and the closing date of Neogen Chemicals IPO is Apr 24, 2019 – Apr 26, 2019.


    Neogen Chemicals IPO Subscription

    Day / Date QIB NII RII Total Subscription
    1st Day – Apr 24 0.01x 0.10x 0.50x 0.27x
    2nd Day – Apr 25 0.95x 1.12x 3.15x 2.09x
    3rd Day – Apr 26 30.49x 113.88x 15.86x 41.07x
    Shares Offered or Net Issue 1,228,094 930,283 2,170,661 4,329,038

    Check here LIVE Bid Details by clicking this link:


    Neogen Chemicals IPO Allotment Status

    Here, you can find the Allotment Status of this IPO.

    Basis of Allotment Finalization 3-May-19
    Refunds Initiation 6-May-19
    Credit of Shares to Demat Account 7-May-19
    Share Listing Date 8-May-19

    Neogen Chemicals IPO Price Band

    The face value of each share is Rs 10, but the price band of the IPO is Rs 212 – Rs 215. 


    Neogen Chemicals IPO Equity Share Offering

    The Neogen Chemicals IPO comprises Public Issue of [●] equity shares of face value Rs.10 each, aggregating up to Rs 132.35 Crores; and Fresh Issues aggregating up to Rs 70.00 Crores. The listing of these shares are on BSE and NSE. The minimum order quantity or market lot size is 65 shares.


    Neogen Chemicals Limited – Company Overview

    It is one of India’s leading manufacturers of bromine-based, and lithium-based specialty chemicals. These chemicals are those chemicals that impart different properties to a variety of products (i.e. the effect that specialty chemicals have varies based on the product) and have a high degree of value addition.

    Specialty chemicals, including bromine and lithium-based compounds, comprise pharmaceutical intermediates, agrochemical intermediates, engineering fluids, electronic chemicals, polymers additives, water treatment chemicals, construction chemicals and flavours and fragrances.

    These Specialty chemicals are widely used for specialized applications to meet industry-specific requirements and can be classified based on application industries.

    Additionally, certain specialty chemicals find application in multiple industries. The Company manufacture specialty organic bromine-based chemical compounds (Bromine Compounds) and other specialty organic chemical compounds as well as specialty inorganic lithium-based chemicals compounds (Lithium Compounds and together with the Bromine Compounds the Products).

    Competitive Strengths of Neogen Chemicals Limited

    • Experienced promoters with domain knowledge
    • Large and diverse array of products
    • Diversified and stable customer base
    • Growth led by continuous investment in R&D
    • Management expertise
    • Specialised business model with high entry barriers
    • Established and stable relationship with suppliers

    Business strategies of Neogen Chemicals Limited

    • Expanding their production capacities
    • Increasing our contract manufacturing portfolio
    • Augmenting growth in domestic and global markets
    • Improving financial performance through focus on operational efficiencies and functional excellence
    • Focus on advanced specialty intermediates which offer higher value addition
    • Competition

    Neogen Chemicals Limited – Financial Statements

    A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus.

    Financial Summary of Neogen Chemicals Ltd

    31-Dec-18 31-Mar-18 31-Mar-17 31-Mar-16 31-Mar-15 31-Mar-14
    Total Assets 2,374.06 1,800.53 1,523.15 804.82 687.56 629.33
    Total Revenue 1,596.87 1,646.75 1,217.75 1,090.47 924.8 803.14
    Total Expense 1,427.66 1,473.78 1,103.07 1,005.66 844.15 741.25
    Profit After Tax 122.21 104.97 76.83 51.8 50.85 36.43
    EBDITA 271.31 289.91 199.87 141.1 126.58 114.76
    EBDITA (%) of Gross Sales 15.44 15.85 16.45 12.96 13.84 14.36
    EPS 6.09 5.25 3.84 2.59 11.3 8.1

    (** EBDITA is Earnings before interest, tax, depreciation and amortization)

    Earnings per Equity Share (in Millions)

    31-Mar-18 31-Mar-17 31-Mar-16 31-Mar-15
    Basic & Diluted 5.25 3.84 2.59 11.30

    From the above statements, one could find that the Neogen Chemicals Limited may perform well.


    Neogen Chemicals IPO – Promoters

    The Promoters of this company are:

    • Haridas Thakarshi Kanani 
    • Harin Haridas Kanani

    List of Related Parties (Key Managerial Personnel)

    • Haridas Thakarshi Kanani
    •  Harin H. Kanani
    • Sanjay N. Mehta*
    • Sanjay N. Mehta (HUF)
    • Hitesh B. Reshamwala
    • Shyamsundar R. Upadhyay
    • Anurag Surana

    Promoter Holdings:

    Pre Issue Share Holding is around 79.68%
    Post Issue Share Holding is around  X.

    Property Interest

    The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

    Interest in Intellectual Rights of the Company

    Promoters has not shown any interest in acquiring the intellectual rights of the company.


    Neogen Chemicals IPO Offer Details or Issue Details

     Particulars  No. Of Equity Shares
    Equity Shares Issued:
    Public  Issue  of  Equity  Shares  by  the Company 
    Up to [●] Equity Shares aggregating Rs [●] million
    of which
    Issue  Reserved  for  the  Market Makers  [●] Equity Shares aggregating up to Rs 700.00 million
    Net Issue to the Public* Up to 2,900,000 Equity Shares aggregating Rs [●] million
    Of which
    A. Promoter Selling Shareholder  Up to 1,699,600 Equity Shares aggregating Rs [●] million
    B. Promoter Group Selling Shareholder Up to 1,200,400 Equity Shares aggregating Rs [●] million
    Equity  Shares  outstanding  prior  to
    the Issue 
    20,078,793 Equity Shares
    Equity  Shares  outstanding  after  the
    Issue 
    [●] Equity Shares

    Neogen Chemicals IPO Issue Object

    These are the IPO Issue Objects of the company

    • Prepayment or repayment of all or a portion of certain borrowings availed by their Company;
    • Early redemption of 9.8% FRCPS
    • Long term working capital;
    • General corporate purposes.

    Neogen Chemicals IPO – Basis of the Offer Price

    The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

    Qualitative factors are:

    • Experienced promoters with domain knowledge;
    • Large and diverse array of products;
    • Diversified and stable customer base;
    • Growth led by continuous investment in R&D;
    • Management expertise;
    • Specialized business model with high entry barriers;
    • Established and stable relationship with suppliers

    The relevant quantitative factors are:

    Basic & Diluted EPS RONW (%) NAV (Rs.)
    31-Mar-16 2.59 18.80 13.07
    31-Mar-17 3.87 18.44 21.22
    31-Mar-18 5.30 21.10 25.12
    • Competitive Peers:
    Sr. No.  Particulars Face Value  (in Rs.) Basic EPS (In Rs.) P/E Ratio
    1. Aarti Industries Limited 5 38.92 33.39
    2. Atul Industries 10 91.16 36.48
    3. Navin Flourine International Limited 2 36.34 17.91
    4. Paushak Ltd 10 66.95 34.25
    5. Vinati Organics Ltd. 2 27.93 55.50

    Neogen Chemicals IPO Lead Managers

    Lead Managers
    INGA ADVISORS PRIVATE LIMITED

    BATLIVALA & KARANI SECURITIES INDIA PRIVATE LIMITED

    Neogen Chemicals IPO Registrar to offer

    Registrar to the Offer
    LINK INTIME INDIA PRIVATE LIMITED
    C-101, 1st Floor, 247 Park, L.B.S. Marg,
    Vikhroli (West), 400 083,
    Mumbai, Maharashtra, India
    Fax: +91 22 4918 6195
    E-mail: neogenchem.ipo@linkintime.co.in
    Investor Grievance E-mail: neogenchem.ipo@linkintime.co.in
    Website: www.linkintime.co.in
    Contact Person: Shanti Gopalkrishnan
    SEBI Registration No.: INR000004058

    Other Details:

    • Statutory Auditor – JMT & Associates, Chartered Accountants
    • Peer Review Auditor – JMT & Associates, Chartered Accountants
    • Bankers to the Company – Citibank N.A., State Bank Of India

    Neogen Chemicals IPO Review by Top 10 Stock Brokers

    Top Stock Brokers Review Company Reputation Competitive Edge Financial Statement Popularity Index Promoters Reputation
    Angel Broking 7.5/10 7.4/10 8.5/10 8.1/10 7.1/10
    Sharekhan 7.2/10 7.1/10 8.6/10 8.1/10 7.2/10
    Kotak Securities 7.3/10 7.5/10 8.4/10 8.1/10 7.3/10
    ICICI Direct 7.3/10 7.3/10 8.7/10 8.1/10 7.1/10
    IIFL 7.5/10 7.2/10 8.8/10 8.0/10 7.1/10
    Edelweiss 7.5/10 7.4/10 8.4/10 8.3/10 7.2/10
    Zerodha 7.4/10 7.1/10 8.5/10 8.1/10 7.0/10
    5Paisa 7.1/10 7.1/10 8.4/10 8.1/10 7.1/10
    Karvy 7.4/10 7.3/10 8.2/10 8.1/10 7.1/10
    Motilal Oswal 7.1/10 7.1/10 8.6/10 8.3/10 7.2/10

    Neogen Chemicals IPO Grey Market Premium

    The Neogen Chemicals IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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