Neogen Chemicals Ltd Review – IPO, Financials Report, Product & Services, Share Price

Company Information – Overview History

Neogen Chemicals Ltd is a 27 years old company founded by IIT Mumbai alumni Chemical Engineer, Mr. H T Kanani. Mr. Kanani is also fondly called the Bromide man of the country because of leading his company to become the largest producer of industrial bromide.

Neogen Chemicals Ltd has a strength of almost 150 individuals most of whom hold a PhD or a bachelor in Chemical Engineering.

The capabilities of Neogen Chemicals Ltd are not just limited to bromination and production of Grignard’s Reagent. Currently, the focus of the company is on multiple fronts like multiple-step synthesis, custom synthesis and Manufacturing through contracts.

Neogen Chemicals Ltd also has built up capabilities such as Alkylation processing, production through Acylation, Friedel–Crafts reactions, Couplings and Chlorination.

With the completion of the expansion of manufacturing facilities, Neogen Chemicals Ltd will be able to increase its penetration of the global market.

Neogen Chemicals Ltd is currently exporting to 27 countries and with upgradation of its infrastructure, it plans to make greater headway in greener pastures.

Neogen Chemicals Ltd Share Price

Coming Soon….

About Neogen Chemicals Ltd – Summary

Neogen Chemicals Ltd Customer Ratings

Neogen Chemicals Ltd Company Financials

The Company financials are for the Quarters ending on Sept 2019, Dec 2019 and March 2020 respectively.

Income Statement

Balance Sheet

Your View – vote now – Buy or Sell

Coming Soon….

Neogen Chemicals Ltd Annual Report

Financial & Operational Overview

The Financial and the operational overview of the company provides us with a glimpse of the financial sustainability of it. A company does survive for a long period if it can provide a sustained revenue generation concerning expenses.

The Financial and Operational overview of Neogen Chemicals Ltd is for the financial years ending in March 2019 and March 2020 respectively.

Financial Highlights:

Comparing both the financial years, it is quite certain that the company has shown a steady increase in gross revenues. The rise may not have been spectacular but a slow rise to is never considered bad.

The chemical industry is a competitive one and sustaining the business for a long time is a commendable affair.

What is also commendable is that the operating expenses have been strictly kept under leash and not allowed the balloon. This is one of the signs of effective management decisions. There have been many instances where companies have not been able to control expenses and sustaining became a burden.

Operational Highlights

As the chart above has illustrated, Neogen Chemicals Ltd have shown a remarkable trajectory over the years. The profits have been able to move north while the expenses have been kept under control. The operational cost of the company hence has been manageable.

As a result of this, the profit margin too has risen marginally.

In the world of industrial chemical production, the slow and steady wins the race. There are many companies which flood the field and not many can sustain itself due to rising costs.

Neogen Chemicals Ltd have been able to pull its expenses within the expected range and focus more on the generation of revenues, which ultimately led to an increase in the profit margin.

Neogen Chemicals Ltd IPO Details

With 27 years in the field of industrial chemical manufacture, Neogen Chemicals Ltd, has been able to carve out a niche for itself. With a steadily rising profit margin, it was just time before Neogen Chemicals Ltd decided to go public.

The reasons for Neogen Chemicals Ltd were as follows:

• Repayment of earlier loans was one of the main reasons why the company decided to go public.
• It also wanted access to public money so that it could create a channel of constant working capital.
• Access to public money is also required when the company decides to expand its current scope of business. Neogen Chemicals Ltd has two plants under manufacture as well as upgrading the infrastructure of its existing plants and research and development facilities.
• Penetration of newer territories require capital and that is also why Neogen Chemicals Ltd decided to go public.
• There are also management activities that would require capital infusion and hence was also the reason behind the listing at the bourses.

➡ The Neogen Chemicals Ltd IPO opening date was: Apr 24, 2019

➡ The Neogen Chemicals Ltd IPO closing date was: Apr 26, 2019

➡ The issue type: Book Built type

➡ Listing date: May 8, 2019

Neogen Chemicals Ltd Allotment Status

The opening day of the IPO was stated as on the 24^th of April, 2019 and the closing day of the IPO was the 26^th of April, 2019.

The IPO was of the Book Built type

On offer was the sale of 2,900,000 Equity Shares at a face value of INR 10

The listing price was kept in the range: INR 212 to INR 215 per Equity Share

The market Lot was decided at 65 shares while the minimum lot to be bid for to 1 Lot.

The shares of Neogen Chemicals Ltd were to be listed at the Bombay Stock Exchange or BSE and the National Stock Exchange or NSE.

Neogen Chemicals Ltd IPO Listing

The listing of Neogen Chemical Ltd bought cheers in the trading community. The reasons weren’t unknown.

Neogen Chemical Ltd was a 27 years old company which manufactured industrial chemicals. It was being efficiently run by management led by an ex IITian, who is also fondly called as the Bromide man of India.

The company had also shown steady growth over the years. It has been able to keep the costs of operations down through effective management practices. All these made Neogen Chemicals Ltd a winning proposition for the intrepid trader.

Competitive Strengths

The reason why Neogen Chemicals Ltd have been able to garner much applause while the listing is because of the inherent strengths they bring to the table:

• They have a wide range of products that cater to a host of industries.
• Neogen Chemicals Ltd not only has a wide customer base but also a stable one. And this has been possible due to their sustained effort to improve quality and excellent customer service.
• The chemical industry is a niche industry with few companies and exceedingly high entry barriers. As a result, not many can sustain the business.
• Neogen Chemicals Ltd has invested in research and development constantly and this has borne fruit. The industrial chemical industry is knowledge-based. Hence, a sustained effort to create more scope is what made the company successful.
• This is one of the most underrated reasons and is overlooked most of the times but having a set of stable suppliers for raw materials does affect the overall efficacy of the output. Neogen Chemicals Ltd does have stable suppliers.

The Grey Market Murmurs

The Grey market for Neogen Chemicals Ltd as on 07-05-2019 was in the range of INR 45 to INR 50 while the Kostak was INR 250 and the Subject to Sauda was INR 2000

Neogen Chemicals Ltd IPO Subscription Status

The breakup of the subscriptions as per the investor category:

The Neogen Chemicals Ltd IPO Details summary

‣ Open: Apr 24, 2019

‣ Close: Apr 26, 2019

• The type of issue: book built type
• The offer for sale: 2,900,000 Equity shares at INR 10 each
• The price of the Initial Public Offer: INR 750 to INR 755 Per Equity Share
• The IPO Price range: INR 212 to INR 215 per equity share
• The Market Lot: 65 Shares
• The Minimum shares required: 65 shares
• Exchanges where the listing will be done: National Stock exchange and the Bombay Stock Exchange

Neogen Chemicals Ltd Promoter Shareholding – Stock & Mutual Fund

Share Holding Pattern in (%)

Mutual Funds:

There is no information regarding Mutual Funds

Neogen Chemicals Ltd Peers Companies

Neogen Chemicals Ltd Mobile APP

They do not have an app

Neogen Chemicals Ltd Customer Care Support

Neogen Chemicals Ltd FAQs

Q1: Tell us more about the Neogen Chemicals Ltd allotment status.

Open: Apr 24, 2019 & Close: Apr 26, 2019

• The type of issue: book built type
• The offer for sale: 2,900,000 Equity shares at INR 10 each
• The price of the Initial Public Offer: INR 750 to INR 755 Per Equity Share

Q2: How did the Grey Market respond to it?

The Grey market for Neogen Chemicals Ltd as on 07-05-2019 was in the range of INR 45 to INR 50 while the Kostak was INR 250 and the Subject to Sauda was INR 2000

Q3: What are the reasons for listing?

• Repayment of earlier loans was one of the main reasons why the company decided to go public.
• It also wanted access to public money so that it could create a channel of constant working capital.
• Access to public money is also required when the company decides to expand its current scope of business. Neogen Chemicals Ltd has two plants under manufacture as well as upgrading the infrastructure of its existing plants and research and development facilities.
• Penetration of newer territories require capital and that is also why Neogen Chemicals Ltd decided to go public.
• There are also management activities that would require capital infusion and hence was also the reason behind the listing at the bourses.

Q4: What are the strengths of Neogen Chemicals Ltd?

• Wide range of products
• A stable set of suppliers
• Quality products
• Sustained Research and Development
• Superior Customer Service 

Q5: What are the future strategies of Neogen Chemicals Ltd?

• The company is willing to expand its manufacturing facilities to facilitate greater production to cater to newer markets.
• They are also investing more in research and development to build newer products to garner a greater share in cutting edge industries.
• To create a bigger brand than what they are right now.