Neptune Petrochemicals IPO sails through on Day 1. Check details

The initial public offering of Neptune Petrochemicals, which opened for subscription on Wednesday, was subscribed by 1.06 times at the end of the first day of the bidding process.

The non-institutional investors (NIIs) had made 322 applications for a total of 17.53 lakh shares, while the qualified institutional buyers (QIBs) had applied for 27.76 lakh shares via 4 applications.

The issue will remain open until May 30 and the company plans to raise Rs 73.20 crore through a fresh issue of 60 lakh shares. Ahead of the issue opening, there is no GMP in the unlisted market.

Beeline Capital Advisors is managing the issue as the book-running lead manager, and MUFG Intime India (Link Intime) is the registrar.

Neptune Petrochemicals IPO price band

The IPO is being offered in a price band of Rs 115 to Rs 122 per share. The shares will be listed on the NSE SME platform with a tentative listing date set for June 4.

Retail investors can apply for a minimum of 1,000 shares, which amounts to Rs 1,22,000 at the upper price band. High-net-worth individuals (HNIs) can apply for a minimum of 2,000 shares with an investment of Rs 2,44,000.

About Neptune Petrochemicals

Incorporated in 2021, Neptune Petrochemicals is engaged in manufacturing and trading various grades of bitumen products, including polymer-modified and crumb-rubber-modified bitumen. The company’s products are widely used in the construction and road-building sectors.

It has three manufacturing units located in Ahmedabad (Gujarat), Panipat (Haryana), and Kamrup (Assam). It also exports products to neighbouring countries such as Nepal and Bhutan.

For the nine months ended December 31, 2024, the company reported revenue of Rs 620 crore and a profit of Rs 19.47 crore. In the previous full year (FY24), Neptune had a profit of Rs 20.82 crore on revenue of Rs 675.97 crore. It has shown strong growth in a short period and maintains a healthy return on equity of 65 percent.

The company plans to use the IPO proceeds to fund the purchase of office space, install new plant and machinery, meet working capital needs, and for general corporate purposes.

Investors will be watching the subscription trends closely over the next few days, especially as the company is part of a fast-growing infrastructure segment. Its strong financials and niche product focus may attract interest, despite current cautious sentiment in the SME space.

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