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Neogen Chemicals Limited IPO

Full analysis of neogen chemicals limited ipo.

Neogen Chemicals Limited IPO

What does company do?

(i) Neogen Chemicals Ltd is a 27-year-old company specializing in Bromine-based compounds, Grignard Reagents, and Inorganic Lithium Salts.

(ii) The company was founded by Mr. H T Kanani, a chemical engineer from IIT Mumbai.

(iii) Over the years Neogen has developed several Bromine based intermediates and is a leading manufacturer of these products to pharmaceutical agrochemical and other specialty chemical companies in India Europe and Japan with leading Innovator and Generic companies as its customers.

(iv) Apart from Bromination and Grignard chemistry, Neogen has also developed competencies in other related chemistries like Alkylation, Acylation, Friedel Craft, Couplings Chlorination etc.

(v) Apart from catering to the domestic market, the company has, so far, exported to 27 countries in the world including USA, UK, France, Germany, Spain, Italy, Japan, Mexico, Canada, South Korea, Netherlands, Belgium, Switzerland, Sweden, Denmark, Greece, Poland, Czech Republic, UAE, Saudi Arabia, Israel, Egypt, Taiwan, Australia, Ireland, and China. Among these, Europe (UK, Spain, France, Germany, and Italy), USA, and Japan remain the largest markets outside of India

Object of the Issue

  • 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

Competitive Strength of the company are

  • Wide product range
  • Stable customer base
  • A specialized business model with high entry barriers
  • Continuous investment in R&D
  • Highly knowledge-intensive industry
  • Stable suppliers

Promoters of the Company

  • Haridas Thakarshi Kanani
  • Harin Haridas Kanani

Lead Manager of the Company

  • Batlivala & Karani Securities India
  • Inga Advisors Private Ltd.

Registrar of the Company

  • Link Intime India Private Limited

Company Financial Performance (in INR crore)

IPO Issue Details

  • Fresh issue : INR70 crore
  • Offer For Sale : 2,900,000 shares
  • Face Value : INR10 per share
  • Retail Allocation : 35%
  • Issue Type : Book Build IPO

Allotment Process 

You can contact your share broker and ask them for your allotment.

Listing Performance

  • Finalisation of Basis of Allotment : 03 May 2019
  • Initiation of refunds : 06 May, 2019
  • Transfer of shares to demat accounts : 07 May, 2019
  • Listing Date : 08 May, 2019

Valuations

  • Earnings Per Share (EPS) : INR5.25
  • Price/Earnings (PE ratio) : To be updated
  • Return on Net Worth (RONW) : 20.97%
  • Net Asset Value (NAV) : INR25.03 per share

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