Neogen Chemicals Limited IPO Analysis, IPO Review, Dates, Price Bands, Market Lot Details
Neogen chemicals limited is incorporated in the year 1991. The company is a manufacturer of a bromine-based and lithium-based specialty chemicals in India.
Neogen produces both organic and inorganic chemical compounds.
These specialized chemicals are used in pharmaceuticals intermediaries, agrochemical intermediaries, engineering fluids, electronic chemicals, polymers additives, water treatment chemicals, construction chemicals, and flavors and fragrances.
The Initial public offering IPO will open for subscription from Apr 24-26. Through the IPO the company is all set to raise about 70 crore funds by issuing fresh equity shares.
With promoters offloading 29 lakh shares. The price band of the IPO is at Rs 212-215 per share.
Our today’s post is about “Neogen Chemical limited IPO 2019”.
Neogen Chemicals IPO Issue Details
| Issue Open | Apr 24, 2019 – Apr 26, 2019 |
| Issue Type | Book Built Issue IPO |
| Issue Size | [.] Eq Shares of Rs 10 (aggregating up to Rs 132.35 Cr) |
| Fresh Issue | [.] Eq Shares of Rs 10 (aggregating up to Rs 70.00 Cr) |
| Offer for Sale | 2,900,000 Eq Shares of Rs 10 (aggregating up to Rs [.] Cr) |
| Face Value | Rs 10 Per Equity Share |
| Issue Price | Rs 212 – Rs 215 Per Equity Share |
| Market Lot | 65 Shares |
| Min Order Quantity | 65 Shares |
| Listing At | BSE, NSE |
Neogen Chemicals IPO Tentative Date / Timetable
| Bid/Offer Opens On | Apr 24, 2019 |
| Bid/Offer Closes On | Apr 26, 2019 |
| Finalization of Basis of Allotment | May 3, 2019 |
| Initiation of Refunds | May 6, 2019 |
| The credit of Shares to Demat Acct: | May 7, 2019 |
| IPO Shares Listing Date: | May 8, 2019 |
Neogen Chemicals IPO Promoter Holding
| Pre Issue Share Holding | 79.68% |
| Post Issue Share Holding |
Important dates for Neogen Chemicals Limited Allotment
Neogen Chemicals Limited IPO allotment status would be obtainable soon after the IPO closure date. Usually, the allotment comes within a week from the closing date which in this IPO yet to be announced. Important Tentative dates for Neogen Chemicals Limited IPO are:
- The Allotment date for Neogen Chemicals Limited IPO issue is expected on May 2, 2019.
- The amount will get unblocked on May 3, 2019.
- The Shares are expected to credit in DP accounts on May 3, 2019.
- The Shares of Neogen Chemicals Limited is likely to get listed on the stock market on May 4, 2019 . on both BSE and NSE.
Source: Bloomberg
About the Neogen Chemical Limited
The Neogen chemical limited is a 27-year-old manufacturing company of bromine-based and lithium-based specialty chemicals.
The company is a leading manufacturer of these products for a pharmaceutical, and other specialty agrochemicals, and any other specialty chemicals companies in India, Europe and Japan.
The company is also emphasizing on custom and contract manufacturing. The work has already started in the new area with customers in Japan and Europe.
Following are the firm’s chemical products
1.Organic Chemicals-
Under such chemicals, the firm includes carbon in combination with hydrogen, and, or, other elements with a covalent bond (i.e. a chemical bond atoms sharing at least one pair of electrons between them).
2. Inorganic Chemicals:- These chemicals consist of an ionic bond and Lithium Compounds.
Lithium compounds are used in eco-friendly Vapor Absorption Machines (VAM) for cooling air/water/process equipment and find application in industries like heating ventilation and air-conditioning (HVAC) and refrigeration, construction chemicals, pharmaceutical, and specialty polymer.
What is IPO?
IPO is an acronym of the initial public offering. Prior to, an IPO the company is considered to be private, with a relatively small number of shareholder made up primarily for early investors such as founder, their families, and friends.
The attempt of offering shares in a private corporation to the public for the first time it is called initial public offerings.
There are growing companies which requires capital will use IPO to raise funds. The Perk of an IPO includes ease in raising and accessing funds and conducting M&A activity.
What are the Financial Highlights of the Neogen chemical limited?
Financials of Neogen Chemicals Limited IPO
| Particulars | For the year/period ended (in Rs. 10 Lakhs) | ||||||
|---|---|---|---|---|---|---|---|
| 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 | 1592.31 | 1,640.12 | 1,214.67 | 1,088.85 | 914.84 | 799.04 | |
| Profit After Tax | 122.21 | 104.97 | 76.83 | 51.80 | 50.85 | 36.43 | |
Comparison With Peers:
| Particulars(Cr) | Neogen Chemicals | Aarti Industries | Navin Fluorine | Paushak Limited |
| Balance Sheet Item | ||||
| Share Capital | 20 | 40.65 | 9.87 | 3.21 |
| FV | 10 | 5 | 2 | 10 |
| Net Worth | 50 | 1515 | 969 | 113 |
| Book Value | 3 | 194.00 | 196.00 | 352.02 |
| Long-Term Debt | 38.50 | 897.00 | 0.00 | 0.00 |
| Short-Term Debt | 41.20 | 986.00 | 0.00 | 0.57 |
| D/E | 1.59 | 1.24 | 0.00 | 0.01 |
| P/L Items | ||||
| Revenue | 164.00 | 3701.00 | 966.00 | 106.00 |
| Revenue Growth in 3 years | 22.89% | 16.52% | 20.98% | 15.1% |
| EBITDA | 29.7 | 661 | 304 | 32.08 |
| EBITDA Growth in 3 years | 44.12% | 10.54% | 46.32% | 29.78% |
| EBITDA Margins | 18.0% | 17.9% | 31.5% | 30.3% |
| PAT | 10.532 | 316 | 178 | 21.47 |
| PAT Growth in 3 years | 43.49% | 11.98% | 43.87% | 32.29% |
| PAT Margins | 6.4% | 8.5% | 18.4% | 20.3% |
| EPS | 4.51 | 38.92 | 36.24 | 66.00 |
| Key Ratios and Valuation | ||||
| RONW | 21.0% | 20.9% | 18.4% | 19.0% |
| P/E | 47.67 | 41.00 | 19.56 | 33.33 |
| P/B | 8.6 | 8.35 | 3.59 | 6.25 |
| Mcap | 501 Cr | 14040 Cr | 3510 Cr | 678 Cr |
| Mcap/Sales | 3.15 | 3.79 | 3.63 | 6.40 |
| EV | 612 Cr | 15860 Cr | 3489 Cr | 678 Cr |
| EV/EBITDA | 16.63 | 23.99 | 11.48 | 21.19 |
How to Apply for Neogen Chemical IPO?
If you have a demat account, the most bank provides the online IPO application. You can also approach the broker to apply in Neogen Chemical IPO.
Most banks including the ICICI bank, Axis and Kotak bank allow the customer to apply in IPO using the demat account.
The object of the Neogen chemical Issue
- General corporate purpose
- Long term working capital
- early redemption of 9.8 FRCPs
- Prepayment or repayment of all or a portion of certain borrowing availed by the company
Who are the Promoters Of The Company
- Haridas Thakarshi Kanani
- Harin Haridas Kanani.
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 | ★★★★☆ |
Should you subscribe to Neogen Chemicals IPO?
Brokerage Anand Rathi has assigned a “subscribe” rating to the Neogen Chemicals IPO. “At the higher end of the issue price, the stock is valued at around 20.1 times FY18EV/EBITDA and around 47.8x P/E,” Anand Rathi said in a note. The higher multiple is justified given the company’s ability to grow profitably and command better return ratios, according to the brokerage.
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Neogen chemical Contact Details
Registered Office Details:-
1002, 10th Floor, Dev Corpora Bldg,
Opp. Cadbury Junction, Off Pokhran Road No. 2,
Khopat, Thane – 400 601,
Maharashtra, India;
Tel: +91 22 2549 7300;
Fax: +91 22 2549 7399;
Corporate Identity Number: U24200MH1989PLC050919;
Email: investor@neogenchem.com;
Website: www.neogenchem.com;
Contact Person: Lalit Ashok Karne, Company Secretary, and Compliance Officer;
Tel: +91 22 2549 7300;
Fax: +91 22 2549 7399;
Email: investor@neogenchem.com
Registrar To The Issue:-
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
Neogen Chemicals Limited IPO Allotment Status
Neogen chemical limited IPO allotment status would be available after the IPO closure date. Usually, the allotment launched within a week from the closing date which in this IPO yet to be announced.
one can check the allotment on the provided link below with PAN number or application number or DP client
- https://www.bseindia.com/
investors/appli_check.aspx - https://www.nseindia.com/
products/dynaContent/equities/ ipos/ipo_login.jsp - https://corpreg.karvy.com/
ipostatus/ - http://linkintime.co.in/
PublicIssues/
Follow the given steps
To check the neogen chemical limited status
- Step 1-Go to Application status
- Step 2-Select IPO a Neogen chemical Limited
- Step 3 Enter Your Pan number or Application ID or DP client ID
Neogen Chemicals Pvt Ltd- Should you Invest?
Positive Outlook of the Firm:-
- certified and experienced promoters,
- The various and diversified offering of products,
- Consistent and strong customer base,
- Track Record of profit after continuous investment in R&D,
- Eccentric and robust business model following high entry barriers,
- Prolong strong relationship with suppliers.
Final Words
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