Neptune Petrochemicals Limited, a company engaged in the manufacturing and trading of a comprehensive range of bitumen products, is launching its Initial Public Offering (IPO) between May 28 and May 30, 2025. This is a Book Built Issue amounting to ₹73.2 crore, consisting entirely of a fresh issue of 60 lakh equity shares.

The company has a diverse product portfolio that includes various grades of bitumen, Polymer Modified Bitumen, Crumb Rubber based modified bitumen, and specialty oils, catering to sectors such as construction and industrial infrastructure.

Key IPO Information

• IPO Opens: May 28, 2025

• IPO Closes: May 30, 2025

• Allotment Date: June 2, 2025 (tentative)

• Listing Date: June 4, 2025 (tentative)

• Stock Exchange: BSE SME

• Price Band: ₹115 to ₹122 per equity share

• Lot Size: 1,000 shares

• Retail Minimum Investment: ₹1,22,000

• HNI Minimum Investment: ₹2,44,000 (2 lots)

At the upper price band of ₹122, the expected market capitalisation is ₹276.37 crore.

IPO Stakeholders

• Book Running Lead Manager: Beeline Capital Advisors Private Limited

• Registrar: MUFG Intime India Private Limited

• Market Maker: Spread X Securities Private Limited

Grey Market Premium Status

The Grey Market Premium (GMP) for Neptune Petrochemicals IPO is currently ₹0, indicating no listing premium in the unofficial market. With no real discovery of price prior to listing, investors are advised not to base investment decisions on GMP, as it is speculative and unregulated.

Business Overview

Neptune Petrochemicals is a leading manufacturer and trader of bitumen and its modified variants, serving essential infrastructure projects. The product lineup includes standard and modified bitumen used for road construction, waterproofing, and other industrial applications.

Management and Promoter Experience

The company is managed by Mr Pareshkumar Subodhchandra Shah (Managing Director) and Mr Sanjaykumar Subodhchandra Shah (Whole-Time Director), with 20 years and 15 years of experience respectively. Their industry expertise has driven the company's growth over the years.

Financial Highlights

Revenue from Operations:

• Dec 31, 2024: ₹62,016.47 lakh

• FY 2024: ₹67,596.79 lakh

• FY 2023: ₹70,930.85 lakh

• FY 2022: ₹8,216.32 lakh

EBITDA:

• Dec 31, 2024: ₹2,665.04 lakh

• FY 2024: ₹2,867.83 lakh

• FY 2023: ₹1,453.43 lakh

• FY 2022: ₹96.01 lakh

Profit After Tax (PAT):

• Dec 31, 2024: ₹1,946.59 lakh

• FY 2024: ₹2,081.56 lakh

• FY 2023: ₹1,039.13 lakh

• FY 2022: ₹68.29 lakh

These numbers confirm a consistent upward trajectory in revenue and profit, reflecting operational scalability and margin improvements.

Valuation Overview

• Pre-Issue EPS (FY24): ₹13.87

• Post-Issue EPS (FY24): ₹9.19

• Pre-Issue P/E Ratio: 8.80x

• Post-Issue P/E Ratio: 13.28x

• Industry P/E Ratio: 18x

• Annualised EPS (FY24): ₹16.34

• Annualised P/E Ratio: 7.46x

Return Metrics

• ROCE (FY24): 117.86 percent

• ROE (FY24): 96.85 percent

• Return on Net Worth (RoNW): 65.25 percent

These metrics indicate high return efficiency and capital productivity, which are strong positives in the long term.

Investment Verdict

Despite solid financial performance and strong return ratios, analyst sentiment remains cautious due to the absence of listing premium in the grey market. Retail investors focused on short-term gains should avoid participation.

For long-term investors, the fundamentals show promise. The company operates in a critical industrial segment with rising infrastructure demand, which may generate value over the long term.

The Upcoming IPOs in this week and coming weeks are Scoda Tubes,Neptune Petrochemicals, Aegis Vopak Terminals, Schloss Bangalore, Astonea Labs, Nikita Papers, Prostarm Info Systems, Victory Electric Vehicles International, Blue Water Logistics, Wagons Learning.

The Current active IPO are Unified Data - Tech Solutions, Dar Credit and Capital, Belrise Industries.

The Closed IPOs are Borana Weaves.