InvestorQ : Is Neogen Chemicals IPO worth subscribing?
Nikita Damle made post

Is Neogen Chemicals IPO worth subscribing?

Niharika Kamble answered.
2 years ago

NCL Initial Public Offering (IPO) has equity shares that consist of an offer for sale from Haridas Thakarshi Kanani of 16,99,600 equity shares and 12,00,400 shares of Beena Haridas Kanani. The price range is between Rs 212-215 per share with the minimum bid lot of 65 and multiples of 65 thereafter. This means that a subscriber has to buy a minimum of 65 shares in one go at the price of Rs 212-215 per share.

The IPO subscriptions start today 24 April and close on 26 April 2019. appears to be richly valued when compared with listed peers. Some expert views the stock as over-priced at IPO price of Rs. 212-215 and so they suggest waiting for a more reasonable valuation in the secondary market after the company list on the exchange. I feel that the company it is worth subscription as the company has reported a 30.3 percent CAGR rise in Profit After Tax (PAT) over FY14-18 to Rs 10.5 crore in FY18. Till February 28, 2019, NCL is said to manufactured an aggregate of 198 products comprising 181 organic chemicals and 17 inorganic chemicals.In addition to manufacturing their standard products, NCL also undertakes custom synthesis and contract manufacturing.

With niche products, NCL not only has domestic clients but also caters its services to international clients like Austin Chemical Company Inc, USA, CBC Co Ltd (Japan), Divi's Laboratories, Laurus Labs, Solvay Specialties India, Thermax and Voltas it is worth subscribing.


Tanya Mehta answered.
2 years ago

Today, 26th April 2019, surprisingly Neogen Chemicals' Rs. 132-crore IPO or initial public offer was subscribed more than four times. Neogen Chemicals is a manufacturer of bromine- and lithium-based specialty chemicals.

Mumbai-based, Neogen Chemicals' IPO, comprises of a fresh issue of shares worth Rs. 70 crore. Its offer for sale (OFS) is worth Rs. 62 crore. It was opened for subscription on 24th April 2019 and closed today.
Total IPO received amounts to nearly 3.53 crore bids against the total issue size of approx. 43.29 lakh (data as per the National Stock Exchange (NSE)).

As per the data provided by the red herring prospectus filed with markets regulator Sebi (Securities and Exchange Board of India) these proceeds are aimed to consume against repayment of borrowings, early redemption of fully redeemable cumulative preference shares and long-term working capital.

(Source: Google images)


Niti Shenoi answered.
2 years ago

The initial public offer (IPO) of Neogen Chemicals, got an overwhelming response from investors. The subscription reached around 41.18 times. 

Neogen Chemicals is India's leading manufacturer of bromine-based and lithium-based specialty chemicals. 

The shares got listed at Rs, 251 per share on BSE, a premium of 16.74 against the issue price of Rs 215. The price range is between Rs 212-215 per share with the minimum bid lot of 65 and multiples of 65 thereafter. 
With the micro view of the total subscription, it includes around 30 times of the qualified institutional buyers (QIBs) category and nearly 113 times were the non-institutional investors category. Lowest was covered by The retail individual investors (RIIs) category, 16 times.  

After the successful listening of IPO, the company is planning to double its capacity of chemicals. The company will raise nearly 256,000 liters and 2,400 tons of organic and inorganic chemicals to meet the requirements.  Further, it is looking to make advanced intermediates.