Neogen Chemicals IPO subscribed 41 times on Day 3 so far
The company had on Tuesday raised Rs 39.70 crore from seven anchor investors at Rs 215 per share.
By ETMarkets.com | Updated:
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The quota for qualified institutional buyers (QIBs) was subscribed 1.40 times, the non-institutional investors (NIIs) quota 4.12 times and the retail quota 6.75 times.
NEW DELHI: The initial public offering (IPO) by Neogen Chemicals was overall subscribed 41.18 times on the last day of the bidding process on Friday.
The Rs 132 crore issues received bids for 17,82,51,580 shares, which is 40.70 times of the total issue size of 43,29,038 shares.
The category reserved for qualified institutional buyers (QIBs) was subscribed 30.42 times, non-institutional investors 114.73 times and retail 15.67 times.
The IPO was subscribed 0.27 times and 2 times on the first and second day of bidding process on Wednesday and Thursday, respectively.
Neogen Chemicals IPO set to open: Should you invest?
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The Rs 132 crore initial public offering (IPO) of specialty chemicals firm Neogen Chemicals will hit the market on Wednesday. On the block are fresh issue of shares aggregating up to Rs 70 crore. The issue will close on April 26. Here are the key things about the company one should know before subscribing to the issue
The Rs 132 crore initial public offering (IPO) of specialty chemicals firm Neogen Chemicals will hit the market on Wednesday. On the block are fresh issue of shares aggregating up to Rs 70 crore. Th..
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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. Besides, it makes inorganic chemicals primarily comprising Lithium compounds. These compounds are used in vapour absorption machines (VAM) and in heating ventilation and air-conditioning (HVAC) and refrigeration, construction chemicals, pharmaceutical and specialty polymer. Organic chemicals account for 60-70 per cent of the company’s revenues while the rest comes in from inorganic chemicals.
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 pharmac..
Read More
The IPO consists of a fresh issue aggregating up to Rs 70 crore by the company and an offer for sale of up to 16,99,600 equity shares by Haridas Thakarshi Kanani and up to 12,00,400 shares by Beena Haridas Kanani (promoters). The issue price band is fixed at Rs 212-215 per share. Bids can be made for a minimum lot of 65 equity shares and in multiples of 65 equity shares thereafter. The anchor investor offer period will be one working day prior to the issue opening date, that is April 23. The company has aimed to raise Rs 131.48 crore at the lower end of price band and Rs 132.35 crore at the upper end.
The IPO consists of a fresh issue aggregating up to Rs 70 crore by the company and an offer for sale of up to 16,99,600 equity shares by Haridas Thakarshi Kanani and up to 12,00,400 shares by Beena H..
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* Expanding production capacities
* Increasing contract manufacturing portfolio
* Augmenting growth in domestic and global markets
* Improving financial performance through focus on operational efficiencies and functional excellence
* Focus on advanced specialty intermediates which offer higher value addition
* Expanding production capacities
* Increasing contract manufacturing portfolio
* Augmenting growth in domestic and global markets
* Improving financial performance through focus on operational e..
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The company said its standalone total income and profit grew at a compounded annual growth rate (CAGR) of 19.66 per cent and 30.61 per cent, respectively, in FY14-18. On a consolidated basis, total income and profit after tax rose 19.69 per cent and 30.29 per cent, respectively, during this period.
The company said its standalone total income and profit grew at a compounded annual growth rate (CAGR) of 19.66 per cent and 30.61 per cent, respectively, in FY14-18. On a consolidated basis, total i..
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* 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
By: HDFC securities 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
* ..
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* Neogen Corporation has filed a commercial intellectual property suit against NCL which if determined against NCL may have an adverse effect on this Offer, its business and results of operations.
* Absence of any firm commitment long-term agreements with customers
* Significant reliance on certain select customers and customers in application industries, in particular customers in the sectors such as- pharmaceutical, agro-chemicals, refrigeration and construction chemicals
* Failure to identify and understand evolving industry trends and preferences and to develop new products to meet customers' demands
* Changes in the value of the Indian rupee and other currencies
* Inability to accurately forecast demand for products, and accordingly manage inventory or plan capacity increases
* Indebtedness and the conditions and restrictions imposed on NCL by its financing agreements
* Increased costs on account of compliance with various law and regulations
* Neogen Corporation has filed a commercial intellectual property suit against NCL which if determined against NCL may have an adverse effect on this Offer, its business and results of operations.
*..
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The maker of organic and inorganic chemicals has many listed peers, including Aarti Industries, Atul, Navin Fluorine International, Vinati Organics and Paushak. These stocks have had a good run in last three years. At the upper end of the issue price of Rs 215, the IPO is demanding a PE of 40.56 (At FY18 EPS of Rs 5.3). Aarti Industries and Atul Industries trade at FY18 multiples of 39-40, while Vinati Organics, Paushak and Navin Flourine trade at 20-58 times.
The maker of organic and inorganic chemicals has many listed peers, including Aarti Industries, Atul, Navin Fluorine International, Vinati Organics and Paushak. These stocks have had a good run in la..
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By 2022, the global specialty chemicals market is expected to grow at 5.47 per cent CAGR to $970.55 billion. The steady growth is because of sustained demand in end-user industries. In India, the industry is highly fragmented, with small and medium enterprises comprising 70-75 per cent market share. Analysts say growth opportunities are immense in this space.
By 2022, the global specialty chemicals market is expected to grow at 5.47 per cent CAGR to $970.55 billion. The steady growth is because of sustained demand in end-user industries. In India, the ind..
The IPO comprises fresh issue of shares worth up to Rs 70 crore and an offer-for-sale of up to 29,00,000 equity shares. This includes an anchor portion of 18,46,715 equity shares.
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The company had on Tuesday raised Rs 39.70 crore from seven anchor investors at Rs 215 per share. The IPO is being sold in the price range of Rs 212-215 per share. It will close for subscription later on Friday.
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.
Besides, it makes inorganic chemicals primarily comprising lithium compounds used in vapour absorption machines (VAM) and heating ventilation and air-conditioning (HVAC) and refrigeration, construction chemicals, pharmaceutical and specialty polymer. Organic chemicals account for 60-70 per cent of the company’s revenues while the rest comes in from inorganic chemicals.
