Neogen Chemicals IPO – Review, Allotment, Subscription, GMP & DRHP

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
2nd Day – Apr 25
3rd Day – Apr 26
Shares Offered or Net Issue

The shares subscribed by the public will be updated herein on a daily basis, once the IPO is open for subscription.


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:
Investor Grievance E-mail:
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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Neogen Chemicals IPO News

News 1 – IPO ISSUE OPENS SOON (Download Prospectus)

News 2 – Red Herring Prospectus Download


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