Neogen Chemicals Limited IPO: Company Profile, Price, Analysis
Neogen Chemicals Limited, one of India’s leading manufacturers of bromine-based, and lithium-based, specialty chemicals is planning to raise INR 132.35 Cr via initial public offer (IPO) [Fresh Issue (INR 70 Cr) and Offer for Sale (INR 61.48 Cr to INR 62.35 Cr)]
neogen chemicals ltd ipo will remain open between 24 to 26 April 2019
Neogen Chemicals Limited – Company Profile
The Company started its business operations in 1991, at Mahape, Navi Mumbai by manufacturing a few Bromine Compounds and Lithium Compounds.
Over the years, Neogen Chemicals has expanded its range of products and, today, it manufactures an extensive range of specialty chemicals which find application across various industries in India and globally.
neogen chemicals ltd share price is INR 215
Neogen Chemicals – Product Profile
The Company’s Specialty Chemicals product offerings comprise of,
Organic Chemicals
- Product offering under Organic Chemicals segment comprises of Bromine Compounds and other organic compounds containing chlorine, fluorine and iodine-based and combinations thereof. In addition, Neogen also manufactures niche products such as Grignard reagents.
- Neogen’s specialty organic chemical compounds find use in application industries such as agrochemical, electronic-chemical, pharmaceutical, flavor and fragrance.
- Aggregate manufacturing capacity of organic chemicals is 1,30,400 litres (reactor volume)
Inorganic chemicals
- Product offering under inorganic chemicals segment primarily comprises Lithium Compounds.
- The Lithium Compounds manufactured by us are used in eco-friendly Vapor Absorption Machines (VAM) for cooling air/water/process equipment and find application in industries such as heating ventilation and air-conditioning (HVAC) and refrigeration, construction chemicals, pharmaceutical, and specialty polymer.
- Aggregate manufacturing capacity of inorganic chemicals is 1,200,000 Kg. per annum of products.
In addition to manufacturing our standard products, Neogen also undertakes custom synthesis and contract manufacturing.
As on 28 February 2019, it manufactured an aggregate of 198 products comprising 181 organic chemicals and 17 inorganic chemicals.
For both the chemicals, the company market and sell its products in India and export primarily to Europe, USA, and Japan.
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Manufacturing Facilities
The Company’s manufacturing facilities located in Mahape, Navi Mumbai in Maharashtra (Mahape Facility) and Karakhadi, Vadodara in Gujarat (Vadodara Facility)
Company Promoters
- Haridas Thakarshi Kanani: A chemical engineers and alumni of the Indian Institute of Technology, Bombay. He also completed his Ph.D. in chemical engineering from the University of Maryland, College Park, USA.
- Harin Haridas Kanani – A chemical engineers and alumni of the Indian Institute of Technology, Bombay.
Haridas Thakarshi Kanani and Harin Haridas Kanani have a cumulative experience of more than 6 decades.
IPO Details – Price, Minimum Bid and Other
Neogen Chemicals – Financials
Neogen’s restated total income and restated profit for the year on a standalone basis grew at a CAGR of 19.66% and 30.61%, respectively, between the Fiscals 2014 and 2018.
CONCLUSION –
Considering the company’s valuation and financial parameters, FinBlab recommends SUBSCRIBE ratings on Neogen Chemicals Limited IPO
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