MUMBAI, (GNI): Dr. Harin Kanani, Joint Managing Director, Neogen Chemicals Ltd addressing the media at a press conference held in Mumbai today – Photo by Sumant Gajinkar
MUMBAI, (GNI): Neogen Chemicals Ltd today announced the company’s forthcoming IPO at a press conference held today in Mumbai. The bankers to the issue and spokesperson from the company like can be seen in picture (L-R) Mr. S. Karthikeyan (INGA Advisors Pvt. Ltd.) with the management of Neogen Chemicals Ltd. Mr. Anurag Surana (Director), Mr. Haridas Kanani (Managing Director), Dr. Harin Kanani (Jt. Managing Director), Mr. Mahesh Tanna (Chief Financial Officer) and Mr. Darshan Piyush Trivedi (Batlivala & Karani Securities India Pvt. Ltd.) – photo by Sumant Gajinkar
MUMBAI, (GNI): Neogen Chemicals Limited, one of India’s leading manufacturers of bromine-based, and lithium-based, specialty chemicals, proposes to open its initial public offering (“IPO”) of Equity Shares on April 24, 2019. The Anchor Investor Bid/Offer Period shall be 1(one) Working Day prior to the Bid/Offer Opening Date which is April 23, 2019.
The IPO consists of a fresh issue aggregating up to Rs. 700.00 million by the company (Fresh Issue) and an offer for sale of up to 1,699,600 equity shares by Haridas Thakarshi Kanani (Promoter Selling Shareholder) and up to 1,200,400 equity shares by Beena Haridas Kanani (‘Promoter Group Selling Shareholder’, and along with the Promoter Selling Shareholder collectively referred to as the ‘Selling Shareholders’).
The Bid/Offer Closing Date will be on April 26, 2019. Bids can be made for a minimum lot of 65 Equity Shares and in multiples of 65 Equity Shares thereafter, announced during the press conference by Mr. Haridas Kanani (Managing Director), of Neogen Chemicals Limited, today in Mumbai.
The Equity Shares are proposed to be listed on BSE and NSE (the “Stock Exchanges”).
The net proceeds from the Fresh Issue are proposed to be utilized for: (i) Prepayment or repayment of all or a portion of certain borrowings availed by the Company; (ii) Early redemption of 9.8% FRCPS; (iii) Long term working capital; and (iv) General corporate purposes.
The Book Running Lead Manager (“BRLM”) to the Offer is Inga Advisors Private Limited and Batlivala & Karani Securities India Private Limited is the Co-Book Running Lead Manager (“CBRLM”) to the Offer.
This Offer is being undertaken in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (SCRR) read with Regulation 41 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (SEBI ICDR Regulations). The Offer is being made through the Book Building Process in accordance with Regulation 26(1) of the SEBI ICDR Regulations, wherein not more 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs) (QIB Portion), provided that our Company may, in consultation with the BRLM and CBRLM, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (Anchor Investor Portion), out of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price.
Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation on a proportionate basis to Retail Individual Investors in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders, other than Anchor Investors, shall participate in the Offer mandatorily through the Applications Supported by Blocked Amount (ASBA) process by providing the details of their respective bank accounts in which the corresponding Bid Amount will be blocked by the SCSBs, or under the UPI Mechanism. Anchor Investors are not permitted to participate in the Offer through the ASBA process.
The Company and the Selling Shareholders may, in consultation with the BRLM and CBRLM consider participation by Anchor Investors in accordance with the SEBI ICDR Regulations.
All capitalized terms used herein and not specifically defined shall have the same meaning as ascribed to them in the red herring prospectus dated April 11, 2019 of the Company (the “RHP”).
Neogen Chemicals Limited (NCL) is one of India’s leading manufacturers of bromine-based, and lithium-based, specialty chemicals. Specialty chemicals are those chemicals that impart different properties to a variety of products (i.e. the effect that specialty chemicals have varies based on the product) and have a high degree of value addition. Specialty chemicals are, also generally, in the Indian context, manufactured in smaller volumes when compared to non-specialty chemicals. Specialty chemicals, including bromine and lithium-based compounds, comprise pharmaceutical intermediates, agrochemical intermediates, engineering fluids, electronic chemicals, polymers additives, water treatment chemicals, construction chemicals and flavours and fragrances. Specialty chemicals are widely used for specialised applications to meet industry-specific requirements and can be classified based on application industries. Additionally, certain specialty chemicals find application in multiple industries.
NCL manufactures specialty organic bromine-based chemical compounds (Bromine Compounds) and other specialty organic chemical compounds as well as specialty inorganic lithium-based chemicals compounds (Lithium Compounds and together with the Bromine Compounds the Products). They commenced their business operations in 1991, at Mahape, Navi Mumbai manufacturing facility with a few Bromine Compounds and Lithium Compounds. Over the years NCL expanded their range of products and, presently, manufacture an extensive range of specialty chemicals which find application across various industries in India and globally. As on February 28, 2019, NCL manufactured an aggregate of 198 products comprising 181 organic chemicals and 17 inorganic chemicals.
In addition to manufacturing their standard products, NCL also undertake custom synthesis and contract manufacturing. In custom synthesis the product is developed and customized primarily for a specific customer, but process know-how and technical specifications are developed in-house by them. Further, NCL have, more recently, commenced contract manufacturing where, the product is developed under confidentiality for a single customer using the process know-how and the technical specifications provided by the customer. Contract manufacturing has enabled them to increase the bouquet of product offering. NCL differentiate themselves in the contract manufacturing space by additionally offering process innovation, which, generally, reduces the overall operating costs for our customers.
The RHP is/will be available on the website of SEBI at, website of stock exchanges i.e. BSE at and NSE at , respectively, and is/will be available on the website of the of the BRLM, i.e. Inga Advisors Private Limited at and CBRLM i.e. Batlivala & Karani Securities India Private Limited at , respectively.ends