Chemical manufacturer ‘Neogen Chemicals’ made a robust debut on Dalal Street on Wednesday, May 8, 2019. After receiving a strong response to its IPO, the company got listed at a 17% premium to its issue price.
Neogen Chemicals IPO was available for subscription from 24 to 26 April 2019 with a price band of Rs 212-215 per share. The company witnessed a good response by investors on its final day of subscription. It was subscribed by 41.14 times. Furthermore, the promoters have a majority stake accounting to 70% and the rest 30% with the public.
The stock made a high of Rs 265.55 per share, which is up 22.5% from its issue price of Rs. 215. However, the stock ended the day with a price of Rs. 263.55. The stock performed well. As compared to the rest of the market trading in the red.
Thane headquartered Neogen chemicals specialize in manufacturing of Bromine-based. It also specializes in Lithium-based speciality chemicals. Further, speciality chemicals are chemicals which impart multiple properties to a variety of products. Moreover, these chemicals are manufactured in limited quantities as compared to non-speciality chemicals in India.
The company’s performance stood at an income of Rs.159.68 crore for H1FY19. The profit for the same period stood at R12.22 crore respectively.
Further, Neogen Chemicals have their operating facilities in Mahape (Navi Mumbai), Vadodara (Gujarat). Along with this, proposed facilities in Dahej and Kharakhadi in Gujarat.