The initial public offering (IPO) of chemical manufacturer Neogen Chemicals has been subscribed 2.02 times at the close of the second day of bidding.
The initial public offering (IPO) of chemical manufacturer Neogen Chemicals has been subscribed 2.02 times at the close of the second day of bidding. The offering received bids for 87,43,345 shares as against the issue size of 43,29,038 shares, according to the NSE data till 5 pm on Thursday. The Rs132-crore public offering was subscribed 27 per cent on Wednesday.
The retail investor portion was subscribed 2.71 times while the NIIs bid for a total of 0.81 times of the portion reserved for them. The issue which closes on Friday offers shares in the price range fixed at Rs 212-215 per share.
The public offering comprises fresh issue of up to Rs 70 crore and offer for sale (OFS) of up to 29,00,000 equity shares. It includes anchor portion of 18,46,715 equity shares. The minimum bid lot size has been fixed at 65 shares, in multiples of 65 shares thereafter. The shares would be listed both on BSE and NSE.
The book running lead managers to the offer are Inga Advisors Private Limited and Batlivala & Karani Securities India Private Limited.
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About Neogen Chemicals
The company began its operations in 1991 at Mahape, Navi Mumbai. The leading manufacturer of the bromine specialty chemicals currently produces 198 products including 181 organic and 17 inorganic chemicals.
The stock gets a subscribe rating from brokerage firm Anand Rathi. The company stock is valued at nearly 20.1x FY18EV/EBITDA and ~47.8x P/E.At the higher end of the issue price of Rs 215 a share.
Meanwhile, the benchmark indices — Sensex and Nifty — closed lower today after trading on a positive note for most part of the day today.