Neogen Chemicals makes smashing debut

about 11 days ago
No Image

There is a brand new listing on the bourses today. Neogen Chemicals, maker of bromine-based and lithium-based specialty chemicals got listed on the BSE at Rs.251 v/s the IPO price of Rs.215/share. It has currently hit the 5% UC at Rs.263.55.

The IPO did very well; it was open from 24-26 April and the Rs.132 crore issue was subscribed 41.18 times.

The qualified institutional buyers (QIBs) category was subscribed 30.49 times but the lion’s share was taken up by the non-institutional investors category, which was subscribed 113.88 times. The retail individual investors (RIIs) category was subscribed 16.06 times.

In our New Issue Analysis, we had found the issue to be too aggressively priced and had said, “current pricing more than fully captures the future growth. FY19 has been a good year for specialty chemical industry and most of the players have capitalized on the same, including Neogen. However, ‘small cap’ tag may be the biggest negative for the stock, with aggressive pricing not helping either.”

Popular Comments

No comment posted for this article.