Neptune Petrochemicals Limited is a prominent player in the manufacturing and trading of a diverse range of bitumen products, bitumen emulsions, and allied products, catering primarily to the construction and industrial sectors. Their product portfolio is broad, comprising various grades of bitumen, polymer modified bitumen, crumb rubber based modified bitumen, and different oils. These products are crucial in road construction, waterproofing, and other industrial applications, making Neptune Petrochemicals a key company in its niche market.

IPO Details and Timeline

Neptune Petrochemicals has announced a Book Built Issue IPO amounting to ₹73.2 Crores, 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. Investors can expect the allotment results to be finalized on or about June 2, 2025 (Monday), with shares scheduled to be listed on the BSE SME platform on June 4, 2025 (Wednesday).

The IPO price band is set between ₹115 to ₹122 per equity share. The market capitalization of Neptune Petrochemicals at the upper band price of ₹122 is estimated at around ₹276.37 Crores. The minimum lot size for retail investors is 1,000 shares, requiring an investment of ₹1,22,000 at the upper price band. High-Net-Worth Individuals (HNIs) must apply for a minimum of two lots (2,000 shares) amounting to ₹2,44,000.

Issue Managers and Market Maker

• 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 (GMP) Insights

As of the latest update on May 22, 2025, the Grey Market Premium (GMP) for Neptune Petrochemicals IPO stands at ₹0, indicating no listing gains expected. The GMP reflects market sentiment in the unofficial market and can fluctuate based on supply and demand. However, the lack of premium suggests a cautious market outlook, likely influenced by the company’s valuation and financials. Investors should note that GMP trading is unregulated and should not solely guide investment decisions.

Anchor Investors Subscription

Neptune Petrochemicals successfully raised ₹20.84 Crores from anchor investors at ₹122 per share. The allocation amounted to 17,09,000 equity shares, taken from the Qualified Institutional Buyers (QIB) quota. Anchor investor participation often signals confidence in the IPO from institutional players.

Business and Management Overview

Neptune Petrochemicals operates in the specialized segment of bitumen and allied products, a crucial raw material for infrastructure development. The management team, led by Managing Director Mr. Pareshkumar Subodhchandra Shah (with 20 years of industry experience) and Whole-Time Director Mr. Sanjaykumar Subodhchandra Shah (15 years of experience), has driven steady business growth.

Financial Performance

The company’s revenue and profitability have shown consistent growth over recent years:

• Revenue from Operations: ₹70,930.85 Lakh (FY 2023), ₹67,596.79 Lakh (FY 2024), ₹62,016.47 Lakh (Dec 31, 2024)

• EBITDA: ₹1,453.43 Lakh (FY 2023), ₹2,867.83 Lakh (FY 2024), ₹2,665.04 Lakh (Dec 31, 2024)

• Profit After Tax (PAT): ₹1,039.13 Lakh (FY 2023), ₹2,081.56 Lakh (FY 2024), ₹1,946.59 Lakh (Dec 31, 2024)

Key Financial Metrics

• Pre-issue EPS: ₹13.87 (FY24)

• Post-issue EPS: ₹9.19 (FY24)

• Pre-issue P/E Ratio: 8.80x

• Post-issue P/E Ratio: 13.28x (Industry average P/E ~18x)

• ROCE: 117.86%

• ROE: 96.85%

• RoNW: 65.25%

These figures reflect robust profitability and efficient capital management. The IPO appears fairly priced compared to industry standards, with a reasonable P/E ratio and strong returns on capital.

IPO Proceeds Utilization

Neptune Petrochemicals plans to use the IPO proceeds primarily for:

1. ₹5.15 Crores towards installation of new plant and machinery and infrastructure development.

2. ₹14.75 Crores for purchasing office space.

3. ₹42 Crores to fund working capital requirements, crucial for day-to-day operations and growth.

4. Remaining funds for general corporate purposes.

How to Check IPO Allotment Status

Post-subscription, investors can check their allotment status on the registrar’s website from June 2, 2025 onwards by:

• Selecting Neptune Petrochemicals Limited IPO from the IPO list.

• Entering application number, PAN, or DP Client ID.

• Submitting the details to view allotment results.

Investment Outlook and Recommendation

While Neptune Petrochemicals exhibits strong fundamentals, healthy financial growth, and credible management, the current Grey Market Premium of ₹0 suggests no immediate listing gains. Given this, investors seeking short-term listing profits might consider avoiding this IPO. Long-term investors with faith in the infrastructure and bitumen sectors may find value in the company’s business model and growth potential.

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