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.
Location :
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,
Maharashtra, India.
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.
- Competition.
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.