Shares of Neogen Chemicals Ltd made a strong stock markets debut on Wednesday. It was listed at ₹251, up 16.7% from its issue price of ₹215 per share. The ₹132-crore public offer that was open from 24-26 April, was oversubscribed 41.18 times.
The initial public offering (IPO) comprises of fresh issue and offer for sale.
The company's total income on consolidated basis for 9-month period December 31, 2018 and fiscal 2018 was ₹159.68 crore and ₹164.67 crore respectively. Its profit for the year on a consolidated basis for the 9-month period December 31,2018 and Fiscal 2018 was ₹12.22 crore and ₹10.49 crore respectively.
Neogen Chemicals Ltd is manufacturers of bromine -based, and lithium-based, specialty chemicals. Specialty chemicals are those chemicals that impart different properties to a variety of products (i.e. the effect that specialty chemicals have varies based on the product) and have a high degree of value addition. In Indian context, specialty chemicals are also generally manufactured in smaller volumes when compared to non-specialty chemicals.
Specialty chemicals, including bromine and lithium-based compounds, comprise pharmaceutical intermediates, agrochemical intermediates, engineering fluids, electronic chemicals, polymers additives, water treatment chemicals, construction chemicals and flavours and fragrances.
It operates out of its manufacturing facilities located in Mahape, Navi Mumbai in Maharashtra (Mahape Facility) and Karakhadi, Vadodara in Gujarat (Vadodara Facility). It is presently, developing a green-field manufacturing unit in Dahej SEZ, in Gujarat (Proposed Dahej Facility) and are also proposing to expand its operations in Karakhadi, Vadodara (Proposed Vadodara Facility). As on February 28, 2019, it employed 152 full time, 45 fixed term contract employees (generally a 5-year contract) and 4 retainers.