Neptune Petrochemicals Limited is engaged in the manufacturing and trading of a comprehensive range of bitumen products, bitumen emulsions and allied products. Their product portfolio includes various grades of bitumen, modified bitumen such as Polymer Modified Bitumen, Crumb Rubber based modified bitumen, and oils. These products cater mainly to the construction and industrial sectors, supporting a wide range of applications.

The company is launching its Initial Public Offering (IPO) as a Book Built Issue amounting to ₹73.2 crore, consisting entirely of a fresh issue of 60 lakh equity shares. The subscription window opens on May 28, 2025, and closes on May 30, 2025. The allotment is expected to be finalized on or about June 2, 2025. Shares will be listed on the BSE SME platform, with a tentative listing date set for June 4, 2025.

The IPO price band is fixed between ₹115 and ₹122 per equity share. At the upper price band of ₹122, the market capitalisation of Neptune Petrochemicals will be approximately ₹276.37 crore. The IPO lot size is 1,000 shares, meaning retail investors must invest a minimum of ₹1,22,000. High Net Worth Individuals (HNIs) must apply for a minimum of two lots (2,000 shares), amounting to ₹2,44,000.

BEELINE CAPITAL ADVISORS PRIVATE LIMITED is the book running lead manager, while MUFG Intime India Private Limited acts as the registrar. Spread X Securities Private Limited is the designated Market Maker for the IPO.

Financial Performance and Growth

Neptune Petrochemicals has demonstrated steady financial growth in recent years. Revenues from operations for the period ended December 31, 2024, stood at ₹62,016.47 lakh, following ₹67,596.79 lakh in FY24, ₹70,930.85 lakh in FY23, and ₹8,216.32 lakh in FY22. EBITDA increased to ₹2,665.04 lakh for the period ended December 2024, compared to ₹2,867.83 lakh in FY24, ₹1,453.43 lakh in FY23, and ₹96.01 lakh in FY22. Profit after tax was ₹1,946.59 lakh for the period ended December 31, 2024, compared to ₹2,081.56 lakh in FY24, ₹1,039.13 lakh in FY23, and ₹68.29 lakh in FY22.

Key financial metrics include a pre-issue Earnings Per Share (EPS) of ₹13.87 and a post-issue EPS of ₹9.19 for FY24. The pre-issue Price to Earnings (P/E) ratio stands at 8.80 times, increasing to 13.28 times post-issue, which is below the industry average P/E of 18 times. The company reports a Return on Capital Employed (ROCE) of 117.86%, Return on Equity (ROE) of 96.85%, and Return on Net Worth (RoNW) of 65.25% for FY24. The annualised EPS based on latest financial data is ₹16.34 with a P/E ratio of 7.46 times, indicating a fairly priced IPO.

Management and Leadership

The company’s growth is driven by an experienced management team led by Managing Director Mr. Pareshkumar Subodhchandra Shah and Whole-Time Director Mr. Sanjaykumar Subodhchandra Shah, who bring 20 years and 15 years of industry experience respectively. Their expertise and leadership are crucial for the company’s continued growth.

Grey Market Premium and Listing Outlook

The Grey Market Premium (GMP) for Neptune Petrochemicals IPO is currently estimated at ₹0, indicating no expected listing gains. GMP reflects unofficial demand and supply in unregulated markets and should only be used for educational purposes. Actual listing prices will be determined on the stock exchange.

Given the company’s financials and valuation, the IPO appears fairly priced but may not offer listing gains. Investors should carefully consider risks and conduct due diligence before investing.

For further assistance, investors may contact:
BEELINE CAPITAL ADVISORS PRIVATE LIMITED (Book Running Lead Manager)
MUFG Intime India Private Limited (Registrar)

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