IPO Update: Neogen Chemicals receives SEBI approval for IPO

The speciality chemicals company Neogen Chemicals has received the capital market regulator's approval for floating its Initial Public Offering (IPO). The company is a leading manufacturers of bromine-based and lithium-based speciality chemicals.

Neogen Chemicals has filed the the Draft Red Herring Prospectus (DRHP) with SEBI in November. The company's planned IPO comprises fresh issuance of shares aggregating up to Rs. 70 crore and an offer for sale (OFS) of up to Rs. 29 lakh by promoters, Haridas T Kanani and Beena Haridas Kanani. The company plans to use the proceeds of the issue for repayment of borrowings, long-term working capital and general corporate purposes.

The company was founded by H T Kanani and is among the largest manufacturers of bromine derivatives, lithium salts and Grignard compounds in India. Its products includes organo bromide compounds, speciality chloro compounds, advanced intermediates, Grignard reagents, lithium salts and inorganic bromine compounds. Neogen has two manufacturing plants one located at Navi Mumbai and other at Karkhadi, Vadodara. Apart from catering to the domestic market, the company exports to 27 countries across the world The company exports majorly to the US, the UK, Spain, France, Germany, Italy and Japan.