Neogen Chemicals' initial public offering (IPO) was subscribed nearly 80 per cent till Thursday afternoon. The Rs 132-crore IPO, which includes a fresh issue of up to Rs 70 crore and an offer for sale worth Rs 62 crore, received bids over 33.70 lakh shares against the total issue size of 43.29 lakh shares, according to data from the National Stock Exchange till 2:00 pm on Thursday.
Mumbai-based Neogen Chemicals has set a price band of Rs 212-215 for the public listing of shares, which opened for subscription on April 24 and will close on April 26. The minimum lot size of the bid is 65 shares, which means subscription can be done in multiples of 65 equity shares thereafter.
The offer comprises of a fresh issue of equity shares aggregating up to Rs 70 crore and an offer for sale of up to 2,900,000 equity shares by Haridas Thakarshi Kanani (Chairman and Managing Director of the company) and up to 1,200,400 equity shares by Beena Haridas Kanani aggregating up to Rs 62 crore.
The company intends to use fund proceeds from fresh issue of shares for repayment of all or a portion of certain borrowings, early redemption of 9.8 percent FRCPS, long term working capital, and general corporate purposes. The company, however, will not get any money from the offer for sale issue.
Ahead of its IPO, the company has raised Rs 39.70 crore from seven anchor investors, which include SBI Magnum Comma Fund, AXIS Mutual Fund Trustee - AXIS Small Cap Fund, L&T Mutual Fund Trustee - L&T Emerging Opportunities Fund.
Inga Advisors Private Limited is the book running lead manager and Batlivala & Karani Securities India Private Limited is the co-book running lead manager.
Incorporated in 1991, Neogen Chemicals is engaged in the manufacturing of specialty organic bromine-based chemical compounds (bromine compounds) and other specialty organic chemical compounds as well as specialty inorganic lithium-based chemicals compounds (lithium compounds and together with the bromine compounds the products). As on February 28, 2019, the company manufactured an aggregate of 198 products comprising 181 organic chemicals and 17 inorganic chemicals.
The equity shares are proposed to be listed on BSE and NSE on May 8, 2019.
Edited by Chitranjan Kumar