The initial public offer (IPO) of specialty chemicals maker Neogen Chemicals for Rs 132 crore opens for subscription today. The public offer by Mumbai-based Neogen Chemicals will remain open till 26th April. Neogen Chemicals in the leading manufacturer of bromine specialty chemicals in India, and started operations in 1991, at Mahape, Navi Mumbai. \u00a0Over the last many years, it has broadened the number of its products 198, comprising 181 organic and 17 inorganic chemicals. Even as investors maybe mulling whether to invest in the issue, we take a look at 5 key details. About the issue Neogen Chemicals IPO consists of a fresh issue aggregating up to Rs 70 crore by the company and an offer for sale of up to 16,99,600 equity shares by promoters Haridas Thakarshi Kanani and up to 12,00,400 shares by Beena Haridas Kanani. At the upper end of the price band, the issue looks to raise up to Rs 132.35 crore at the upper end of the price band. The firm has set a price band of Rs 212-215 for the IPO. The minimum bid lot has been kept at 65 shares and in multiples of 65 shares thereafter. The issue will remain open till the 26th of April 2019. Financials Over the last five fiscal years, Neogen Chemicals has reported revenue, EBITDA and PAT CAGRs of 22%, 26% and 30% respectively. The firm\u2019s EBITDA margin expanded 244bps to 18%. The Debt-based capex funding led to its net-debt-to-equity touching 1.9x in FY18,up from 1.2x in FY15. The RoE and RoCE have averaged ~20% and ~15% respectively over FY14-18. \u00a0For the 9-month period in FY19, consolidated operating revenue stood at Rs 159.23 crore. Strengths of the issue Neogen Chemicals is the leading manufacturer of bromine specialty chemicals in India. It started out in 1991, at Mahape, Navi Mumbai, with a few bromine-based compounds and lithium salts, and has grown to one of India\u2019s leading manufacturers of bromine and lithium-based derivatives. Neogen Chemicals has installed capacity for 130,400 litres of organic chemicals and 1,200 tons of inorganic chemicals, with utilisation at respectively 64% and 94%. The firm has plans to double capacity to\u00a0 about 256,000 litres and 2,400 tons of organic and inorganic chemicals to cater to mounting demand, in the years going forward. Valuation Various analysts note that the issue is priced higher than its peers. \u201cAt the higher end of the issue price of Rs 215 a share, the stock is valued at ~20.1x FY18EV\/EBITDA and ~47.8x P Arti Industries and Atul Industries trade at FY18 P\/E multiples of 38-42, while Vinati Organics and Navin quote at respectively 21x and 63x. On the annualised 9MFY19 EPS of `7, the stock priced at 28.5xPE and 17.4x EV\/EBITDA,\u201d \u00a0Anand Rathi said in a report. However, the firm said that higher multiple is justified given the company\u2019s ability to grow profitably and command better return ratios. Anand Rathi has assigned a subscribe rating on the issue.\u00a0The risks to the issue include slow growth in underlying sectors such as pharma, high working capital intensity and high debt great dependence on certain customers, said the firm. Brokerage firm Choice Broking noted that the issue is fully priced. \u201cBased on FY19E and FY20E EPS, the stock is valued at P\/E multiples of 32.2 times and 26 times, respectively, which is at a premium to the peer average. However, considering its historical growth profile and proposed expansion activities, we feel the issue is fully priced. Thus, we assign an \u2018avoid\u2019 rating for the issue,\u201d Choice Broking said in its report.