Neptune Petrochemicals Limited is a key player in the manufacturing and trading of bitumen products, bitumen emulsions, and allied products. Its diverse product portfolio features various grades of bitumen including Polymer Modified Bitumen (PMB) and Crumb Rubber Modified Bitumen, which cater primarily to the construction and industrial sectors. This specialization allows the company to serve multiple industries that rely on bitumen for road construction, waterproofing, and other industrial applications.

The company has announced a Book Built Issue IPO amounting to ₹73.2 Crores, consisting entirely of a fresh issue of 60 lakh equity shares. The IPO subscription period opens on May 28, 2025, and closes on May 30, 2025. Post-subscription, the allotment is expected to be finalized around June 2, 2025, with the shares tentatively scheduled for listing on the BSE SME platform around June 4, 2025.

Investors can apply for the IPO within the price band of ₹115 to ₹122 per equity share. At the upper band price of ₹122, Neptune Petrochemicals’ market capitalization is projected to be approximately ₹276.37 Crores. The IPO lot size is fixed at 1,000 shares, meaning retail investors must invest a minimum of ₹1,22,000, whereas High-Net-Worth Individuals (HNIs) need to invest in at least 2 lots (2,000 shares), amounting to ₹2,44,000.

The book running lead manager for this IPO is Beeline Capital Advisors Private Limited, with MUFG Intime India Private Limited appointed as the registrar. Spread X Securities Private Limited has been designated as the market maker for the IPO, ensuring liquidity post-listing.

Grey Market Premium (GMP) & Subscription Status

As of May 22, 2025, the Grey Market Premium (GMP) for Neptune Petrochemicals IPO was ₹0, indicating neutral expectations for listing gains. GMP tends to fluctuate based on demand-supply dynamics in unregulated markets and is not a reliable indicator of actual market pricing.

On the final day of subscription, May 30, 2025, the IPO saw a subscription level of 1.83 times, reflecting a healthy investor interest. Real-time subscription data is available on stock exchange portals such as NSE.

Anchor Investors

Neptune Petrochemicals raised ₹20.84 Crores from anchor investors who subscribed at the upper price band of ₹122 per share. A total of 17,09,000 shares were allocated to these investors from the Qualified Institutional Buyers (QIBs) quota. This anchor investment signals confidence from institutional players ahead of the public subscription.

How to Check Allotment Status

The IPO allotment status will be available online from June 2, 2025. Investors can check their allotment by visiting the registrar’s IPO allotment page, selecting Neptune Petrochemicals Limited, and entering their application number, PAN, or Demat Client ID.

IPO Objectives

The funds raised through the IPO will be utilized as follows:

• ₹5.15 Crores for capital expenditure to install new plant machinery and infrastructure.

• ₹14.75 Crores to purchase office space.

• ₹42 Crores for working capital requirements.

• Remaining proceeds for general corporate purposes.

Financial Performance and Valuation

Neptune Petrochemicals has shown consistent revenue and profit growth over the last few years. For the fiscal year ending December 31, 2024, the company reported revenues of ₹620.16 Crores, EBITDA of ₹26.65 Crores, and a profit after tax of ₹19.46 Crores. These figures show an improving trend compared to previous years, with revenues growing steadily.

Key financial metrics include:

• 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: 18x)

• Return on Capital Employed (ROCE): 117.86%

• Return on Equity (ROE): 96.85%

• Return on Net Worth (RoNW): 65.25%

These ratios suggest the IPO is priced reasonably relative to industry benchmarks, presenting a fair valuation opportunity.

Expert Recommendation

Given the company’s solid financial performance and industry positioning, Neptune Petrochemicals’ IPO appears fairly priced. However, the zero Grey Market Premium indicates minimal expected listing gains, and thus speculative investors seeking quick profits may want to be cautious. The IPO suits investors looking for steady growth in a niche industrial segment rather than immediate listing returns.

The Upcoming IPOs in this week and coming weeks are Victory Electric Vehicles International, Wagons Learning.

The Current active IPO are 3B Films, N R Vandana Tex Industries, Scoda Tubes, Neptune Petrochemicals.

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