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Neogen Chemicals IPO Review, DRHP, Date, Price

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 โ€“ Apr 24, 2019
  • IPO Closes on โ€“ Apr 26, 2019
  • Face Value โ€“ Rs.10 Per Equity Share.
  • Issue Price โ€“ Rs. – Rs. Per Equity Share.
  • Issue Type โ€“ Book Built Issue IPO.
  • Market Lot โ€“ Nil.
  • Minimum Order Quantity โ€“ Nil.
  • Issue Size โ€“ 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 โ€“ BSE, NSE.
  • Draft Prospectus โ€“ 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 โ€“

  • 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. 
Neogen Chemicals Limited

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 โ€“ Karakhadi,
Taluka โ€“ Padra, District โ€“ 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

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.

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