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Neogen Chemicals raises $5.7 mn from anchor investors ahead of IPO
Photo Credit: VCCircle

Speciality chemicals maker Neogen Chemicals Ltd has raised Rs 39.70 crore ($5.7 million) from anchor investors ahead of its initial public offering.

The company allotted about 1.85 million shares to four domestic mutual funds at the upper end of its price band of Rs 212-215, it said in a stock-exchange filing.
The investors are SBI Mutual Fund, Axis Mutual Fund, L&T Mutual Fund and Sundaram Mutual Fund.

The company's IPO opens on Wednesday and closes two days later.

The IPO comprises a fresh issue of shares worth Rs 70 crore and a secondary market sale of up to 2.9 million shares by promoters Haridas Thakarshi Kanani and Beena Haridas Kanani, according to the company's draft prospectus.

Neogen had filed its draft prospectus with the Securities and Exchange Board of India last November. It received SEBI's approval on 8 February.

The company is targeting a valuation of as much as Rs 565 crore.

Neogen was founded in 1989 by chairman Haridas Kanani, an IIT-Bombay graduate. The company began business operations in 1991 at a factory at Mahape, Navi Mumbai. Thane-based Neogen also has a factory in Vadodara, Gujarat.

Neogen makes bromine- and lithium-based specialty chemicals. Over the years it has expanded its range of products. It now makes 187 products, comprising 170 organic chemicals and 17 inorganic chemicals.

Inga Advisors Pvt. Ltd and Batlivala & Karani Securities India Pvt. Ltd are managing Neogen’s IPO.

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