Neptune Petrochemicals IPO
IPO Details
Neptune Petrochemicals IPO is a bookbuilding of ₹73.20 Crore. The issue is entirely a fresh issue of ₹73.20 Crore and an offer for sale of Nil.
Neptune Petrochemicals IPO opens for subscription on 2025-05-28 and closes on 2025-05-30. The allotment is expected to be finalized on 2025-06-02. The IPO will be listed on BSE, NSE with tentative listing date as 2025-06-04.
Price band is set at ₹115 to ₹122 per share. The minimum lot size for application is 1000 shares (₹115000). It is suggested to bid at the cutoff price to avoid oversubscription, which is about ₹122000.
IPO Timeline
Company Overview
Neptune Petrochemicals IPO Details
Neptune Petrochemicals Limited, established in 2001, is engaged in the manufacturing and trading of bitumen and bituminous products, such as modified bitumen, emulsions, and related road construction materials. The company has a strategic focus on supplying infrastructure and construction industries in India and neighboring countries like Nepal and Bhutan.
Company Overview
The company’s plant is located in Sanand, Gujarat, where it blends and packages various grades of bitumen. Neptune also trades in imported and domestically procured bitumen. With a lean workforce of 68 employees, it relies on operational efficiency to cater to infrastructure, highway, and government projects.
Business Model
Neptune Petrochemicals generates revenue through:
- Manufacturing of modified and specialty bitumen products.
- Trading of bitumen procured from Indian Oil Corporation and imported suppliers.
- Export to Nepal and Bhutan for highway projects.
Financial Performance
| Particulars | Mar 2022 | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|---|
| Revenue (₹ Cr) | 82.16 | 709.31 | 675.97 | 620.16 |
| Profit After Tax (₹ Cr) | 0.68 | 10.39 | 20.82 | 19.47 |
| Net Worth (₹ Cr) | 0.69 | 11.08 | 31.90 | 61.23 |
| Reserves & Surplus (₹ Cr) | 0.68 | 11.07 | 31.89 | 44.57 |
| Total Borrowings (₹ Cr) | 0.00 | 5.12 | 0.00 | 0.16 |
| Assets (₹ Cr) | 97.51 | 107.88 | 120.95 | 117.00 |
IPO Details
- Issue Size: ₹73.20 Crore (entirely fresh issue)
- Price Band: ₹115 – ₹122 per share
- Lot Size: 1,000 shares
- Minimum Investment: ₹1,22,000 (upper band)
- Listing Venue: NSE SME platform
IPO Objectives
- To meet working capital requirements
- To strengthen capital base and improve liquidity
- General corporate purposes
Subscription Details
| Category | Allocation | Subscription |
|---|---|---|
| QIB | 50% | N/A |
| NII | 15% | N/A |
| Retail | 35% | N/A |
| Total | 100% | N/A |
Note: Subscription status will be updated after IPO closing.
Key Strengths
- Strong growth in revenue and PAT from FY22 to FY24.
- Debt-light balance sheet with negligible borrowings.
- Export presence in Nepal and Bhutan.
- Operating in the bitumen sector — a crucial component in national infrastructure growth.
- Consistent track record of supplying to major road construction firms and government tenders.
Risk Factors
- High dependence on infrastructure and government projects.
- Volatility in bitumen prices linked to crude oil markets.
- No long-term contracts; operates on order-based sales.
- Small team size may restrict scalability.
- Exposure to environmental and regulatory compliance norms.
Lead Manager
- Beeline Capital Advisors Pvt Ltd
Registrar
- Mas Services Limited
GMP Trends
The latest Grey Market Premium (GMP) is ₹15, implying a ~12.30% expected listing gain over the issue price. GMP trends are positive, indicating strong investor interest.
Expert Opinion
Neptune Petrochemicals is a niche player in the infrastructure enabler space with lean operations and consistent profitability. Its scalable model, healthy financials, and low-debt position make it appealing for investors with high-risk appetite looking for SME exposure. However, given sector-specific dependencies, prudent allocation is advised.
Disclaimer: This analysis is for informational purposes only. Investors should read the Red Herring Prospectus (RHP) and consult with their financial advisors before investing.
Business Segments
Information about business segments will be available soon.
Financial Performance
| Particulars | FY 31 Mar 2022 | FY 31 Mar 2023 | FY 31 Mar 2024 | FY 31 Dec 2024 |
|---|---|---|---|---|
| assets | 97.51 ₹ Cr | 107.88 ₹ Cr | 120.95 ₹ Cr | 117 ₹ Cr |
| net worth | 0.69 ₹ Cr | 11.08 ₹ Cr | 31.9 ₹ Cr | 61.23 ₹ Cr |
| profit after tax | 0.68 ₹ Cr | 10.39 ₹ Cr | 20.82 ₹ Cr | 19.47 ₹ Cr |
| reserves and surplus | 0.68 ₹ Cr | 11.07 ₹ Cr | 31.89 ₹ Cr | 44.57 ₹ Cr |
| revenue | 82.16 ₹ Cr | 709.31 ₹ Cr | 675.97 ₹ Cr | 620.16 ₹ Cr |
| total borrowing | 0 ₹ Cr | 5.12 ₹ Cr | 0 ₹ Cr | 0.16 ₹ Cr |
Additional Information
The proceeds from the IPO will be used for:
- Expansion of manufacturing facilities
- Debt repayment
- General corporate purposes
Information about key strengths will be available soon.
Information about risk factors will be available soon.
| Category | Allocation | Subscription |
|---|---|---|
| QIB | 50% | N/A |
| NII | 15% | N/A |
| Retail | 35% | N/A |
| Total | 100% | N/A |
Industry analysts are positive about the company's growth prospects given its strong financial performance, diversified product portfolio, and expansion plans. The IPO is expected to receive good response from investors looking for exposure to the sector.
Grey Market Premium
*Expected Premium is derived from market rumors. It is not a guaranteed indicator of the actual listing price.
IPO Quick Info
Market Lot
IPO Details
Lead Managers
- Axis Capital Limited
- ICICI Securities Limited
- Kotak Mahindra Capital Company Limited
Registrar
Link Intime India Private Limited
