Neogen Chemicals Limited is leading manufactures and seller of bromine-based and lithium-based speciality chemicals in India. The article contains Neogen Chemicals IPO Review with company summary and issue details.
Neogen Chemicals IPO Review Issue Details :
- IPO Opens on – Apr 24, 2019
- IPO Closes on – Apr 26, 2019
- Face Value – Rs.10 Per Equity Share.
- Issue Price – Rs. – Rs. Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Market Lot – Nil.
- Minimum Order Quantity – Nil.
- Issue Size – 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.
- Listing Exchange – BSE, NSE.
- Draft Prospectus – Download
Objectives of the issue of the Company :
- Prepayment or repayment of all or a portion of certain borrowings availed by Neogen Chemicals Limited.
- This company’s object of the issue is their early redemption of 9.8% FRCPS.
- Long term working capital of Neogen Chemicals Limited.
- General corporate purposes of this company.
About The Company –
- Neogen Chemicals Limited was incorporated in 1991.
- This company offer speciality organic bromine-based chemical compounds (Bromine Compounds) and other non-bromine speciality chemical compounds comprising chlorine, iodine, and fluorine-based compounds, as well as grignard reagents for use in pharmaceutical, agrochemical, flavour, and fragrance and electronic-chemical industries.
- Neogen Chemicals Limited had commenced the business operations in 1991, at Mahape, Navi Mumbai manufacturing facility with a few Bromine Compounds and Lithium Compounds.
- Over the years this company has expanded the range of products and, presently, manufacture an extensive range of specialty chemicals which find application across various industries in India and globally.
- Neogen Chemicals Limited manufactured an aggregate of 198 products comprising 181 organic chemicals and 17 inorganic chemicals.
- In addition to manufacturing of standard products, This company also undertakes custom synthesis and contract manufacturing.
- Neogen Chemicals Limited is presently, developing a green-field manufacturing unit in Dahej SEZ, in Gujarat.
Registered Office :
Neogen Chemical Limited
1002, Dev Corpora, Cadbury
Junction, Eastern Express Highway,
Thane (W) 400 601, India.
Mahape Manufacturing Site :
Neogen Chemical Limited,
Plot No. 43/44, TTC MIDC
Industrial Area, Mahape,
Navi Mumbai 400 710,
Vadodara (Karkhadi) Manufacturing site
Neogen Chemical Limited,
Block No. 526A, Opp. Padra
Jambusar Road, Village – Karakhadi,
Taluka – Padra, District – Vadodara,
Gujarat 391 450, India.
Phone no.: +91 22 2549 7300
Email Id : [email protected]
The promoter of Neogen Chemicals Limited :
- Haridas Thakarshi Kanani, aged 73 years, is the Promoter of this company.
- Harin Haridas Kanani, aged 42 yeras, is the promoter of the company.
The Board of Directors of this company :
- Haridas Thakarshi Kanani, aged 73 years, is the Chairman and Managing Director of this company.
- Harin Haridas Kanani, aged 42 years, is the Joint Managing Director of this Company.
- Sanjay Natwarlal Mehta, aged 67 years, is an Independent Director in this Company.
- Hitesh Bharatkumar Reshamwala, aged 52 years, is an Independent Director in this Company.
- Shyamsunder Upadhyay, aged 64 years, is an Executive Director in this Company.
- Anurag Surana, aged 53 years, is a Non-Executive Director in this Company.
- Avi Kersi Sabavala, aged 60 years, is an Independent Director in this Company.
- Ranjan Kumar Malik, aged 69 years, is an Independent Direct in this Company.
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 their contract manufacturing portfolio.
- Augmenting growth in domestic and global markets.
- Improving financial performance of this company through focus on operational efficiencies and functional excellence.
- Neogen Chemicals Limited’s main focus on advanced specialty intermediates which offer higher value addition.
Company Financials :
Neogen Chemicals IPO Review :
The above figure is the profit-loss statement of the company. It shows the company is running on a moderate level. Now, have a look at the company prospectus (Draft red herring prospectus). According to 2018 fiscal year, EPS (earnings per share) was at 5.25 (consolidate basis). There is no P/E ratio available here in this prospectus. NAV/Share was 25.23 as per the fiscal year 2018.
Therefore, the analysis Neogen Chemicals IPO Review carries a NEUTRAL view. Apart from this, on the issue opening date, one could check the NSE bid details . Our previous article contains general idea about it. Besides this Grey market premium is also a vital way to analyze an IPO.
Ankita has done her Diploma Engineering in Computer Science & Technology. She is pursuing her degree in Engineering and also well experienced in the equity market and real estate related content writing. She is the one who has developed the technical indicators section of our site.