Neochem Bio Solutions IPO Day 1: Check GMP, subscription, and other details - Key things to know before subscribing

Neochem Bio Solutions IPO Day 1: The initial public offering (IPO) of Neochem Bio Solutions opened for public subscription today, December 2, and will conclude on Thursday, December 4. The ₹44.97 crore SME issue is entirely a fresh issuance of 46 lakh shares with no offer for sale (OFS) component.

The price band for the Neochem Bio IPO has been set between ₹93 and ₹98 per equity share.

The basis of allotment for the Neochem Bio IPO is expected to be finalised on Friday, December 5. Successful applicants are likely to receive the shares on Monday, December 8, while refunds for those who do not receive an allotment will also be processed on the same day.

Neochem Bio is scheduled to list its shares on NSE SME on Tuesday, December 9.

Neochem Bio plans to utilise the net proceeds from its IPO to support key business requirements. Around ₹23.90 crore will be allocated toward funding the company’s long-term working capital needs, while ₹10 crore is earmarked for the repayment or prepayment of certain outstanding borrowings. The remaining funds will be directed toward general corporate purposes.

Separately, the company announced on December 1 that it had secured ₹12.77 crore from anchor investors ahead of the IPO launch. The issue has garnered investor attention, with ace investor Mukul Agarwal’s Sanshi Fund emerging as the largest anchor participant, holding over 39% of the anchor allocation.

Of the total net offer, 47.38% is allocated to qualified institutional buyers (QIBs), while 33.26% is earmarked for retail investors. The remaining 14.28% has been reserved for non-institutional investors (NIIs).

The IPO lot size is set at 1200 shares. For retail investors, the minimum investment is 2 lots. At the upper end of the price band, ₹98, the minimum investment required amounts to ₹2.35 lakh.

Vivro Financial Services is the book running lead manager and MUFG Intime India is the registrar of the issue. The Market Maker of the company is Rikhav Securities Ltd.

Neochem Bio IPO GMP Today

Investor sentiment toward the IPO is muted, as Neochem Bio 's grey market premium (GMP) stood at ₹0 on December 1. This suggested that the stock was likely to debut at ₹98, same as IPO price.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

Neochem Bio IPO subscription status

The IPO was subscribed 0.55x by 3:10 pm Day 1. The retail portion was subscribed 0.36x, and NII portion was booked 0.41x, Qualified Institutional Buyers (QIBs) portion received 1x bids.

The company has received bids for 16.87 lakh shares against 30.52 lakh shares on offer.

About Neochem Bio Solutions

Incorporated in 2006, Neochem Bio Solutions Ltd. operates in the specialty performance chemicals segment, supplying products that play a crucial role across multiple industries. Its portfolio supports diverse sectors such as textile and garment washing, home and personal care (HPC), institutional and industrial cleaning, water treatment, paints and coatings, paper and pulp, construction, rubber, and dyes and pigments. The company provides a wide range of textile and garment washing auxiliaries—including pre-treatment, dyeing, finishing, printing and coating solutions—designed for all fabric and garment types and compatible with various modern processing machines.