Neogen Chemicals' Rs 132-crore IPO or initial public offer was subscribed more than two times on Thursday. Mumbai-based Neogen Chemicals' IPO, which comprises a fresh issue of shares worth Rs. 70 crore and an offer for sale (OFS) worth Rs. 62 crore, opened for subscription on Wednesday, and will close on Friday, April 26. Neogen Chemicals is a manufacturer of bromine- and lithium-based specialty chemicals. (Also read: Neogen Chemicals initial public offer opens. Should you subscribe?)
At the end of the second day of issue, the Neogen Chemicals IPO received 90.48 lakh bids against the total issue size of 43.29 lakh, according to data from the National Stock Exchange (NSE) till 5:00 pm. That marked a subscription of 2.09 times for the Neogen Chemicals IPO.
The chemicals manufacturer has set a price band of Rs. 212-215 for the initial public offer. The Neogen Chemicals IPO can be subscribed in lots of 65 shares.
The company aims to utilise the proceeds towards repayment of borrowings, early redemption of fully redeemable cumulative preference shares and long-term working capital, according to its red herring prospectus filed with markets regulator Sebi (Securities and Exchange Board of India).
Neogen Chemicals commenced business operations in 1991, at its manufacturing facility in Mahape, Navi Mumbai. Over the years, the company has expanded its range of products, which find application across various industries within the country and abroad.
As of February 28, 2019, Neogen Chemicals has manufactured an aggregate of 198 products comprising 181 organic chemicals and 17 inorganic chemicals, according to its red herring prospects.
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