May 8, 2019
Equity shares of Neogen Chemicals, a leading manufacturer of bromine and lithium-based specialty chemicals, listed on BSE and NSE on Wednesday at a premium of Rs 251 apiece, up 16.74 per cent against the issue price of Rs 215.
The IPO comprised an offer for sale (OFS) of 2.9 million equity shares, aggregating Rs 62.4 crore and fresh issue of 3.2 million equity shares aggregating Rs 70 crore. The IPO also included of secondary share sale worth Rs 69 crore by the promoter group.
The objectives of the issue were to repay a portion of certain borrowings of the company, early redemption of 9.8 per cent FRCPS, long-term working capital and general corporate purposes. Haridas Thakarshi Kanani and Harin Haridas Kanani are the promoters of the company.
As per NSE data, the initial public offer (IPO) of Neogen Chemicals, which was open for subscription between April 24 and April 26 at a market lot size of 65 shares, was subscribed 41.18 times.
The IPO in the price band of Rs 212 – Rs 215 per share at a face value of Rs 10, received bids for 17.82cr shares, NSE data showed.
The qualified institutional buyers (QIBs) category was subscribed 30.49 times with 1,228,094 shares offered.
The non-institutional investors (NII) category was subscribed 113.88 times for 930,283 shares offered. The retail individual investors (RIIs) category was subscribed 16.06 times 2,170,661 shares offered totaling to 4,329,038 shares overall (BSE+NSE).
Incorporated in 1991 in Mahape, Navi Mumbai, Neogen Chemicals is a manufacturer of bromine-based and lithium-based specialty chemicals. The company plans on doubling its capacity to 256,000 liters and 2,400 tons of organic and inorganic chemicals to cater to the demand. It is also trying to forward-integrate bromination with other chemistries to make advanced intermediates, otherwise being manufactured by customers in-house.
Neogen makes organic chemical compounds – Bromine compounds and other organic compounds containing chlorine, fluorine and iodine-based and combination – used in application industries such as pharmaceutical, agrochemical, flavour and fragrance and electronic chemicals.
The company annually manufactures 1,30,400 litres of organic chemicals and 1,200,000 kg of inorganic chemicals. The manufacturing units are located at Navi Mumbai in Maharashtra and Karakhadi, Vadodara in Gujarat. The company markets and sells products in India, Europe, Japan and the USA.
At 10:40 am, the stock was trading at Rs 263.55, up 48 points or 22.58 per cent on both the exchanges. A total of 2.67 lakh and 12.9 lakh shares are changing hands on BSE and NSE, respectively. There are only buyers for the stock.