Neogen expects to receive the benefits of listing equity shares on the stock exchanges, which includes enhancing the visibility of its brand and company.
Mumbai-based specialty chemical maker, Neogen Chemicals Ltd. has reportedly received capital market regulator SEBI’s (Securities and Exchange Board of India) approval to initiate an initial public offering (IPO). The move will bring the number of companies attaining SEBI’s clearance for the public issues, follow on public offer (FPO) and initial public offer (IPO), to seven as of in the year 2019.
As per reports, Neogen Chemicals, which in November 2018 presented its IPO papers with SEBI, recently attained the regulator’s observations, which apparently is necessary for any company planning to launch public issues.
According to the draft papers, Neogen Chemicals’ early share sale include the latest issuance of shares combining up to Rs 70 crore and an offer for sale of up to Rs 29 lakh by the firm’s promoters. Sources suggest that proceeds of the issue will be used for settlement of certain loans availed by the firm for long-term working capital and general corporate purposes.
Reports from The Economic Times cite that the company expects to receive the benefits of listing equity shares on stock exchanges, which includes enhancing the visibility of its brand and company. Reports further claim that Batlivala & Karani Securities India and Inga Advisors will be managing Neogen Chemical’s IPO with equity shares to be listed on BSE and NSE.
For the record, Neogen Chemicals is one of the leading manufacturers of Bromine-based compounds, Grignard Reagents and Inorganic Lithium Salts. Over the years the company has developed several Bromine-based intermediates and offers these products to pharmaceutical agrochemical and other specialty chemical companies in India, Japan and Europe.
Reportedly, Neogen, apart from Bromination and Grignard chemistry, has also developed competencies in other related chemistries like Acylation, Alkylation, Friedel Craft, Couplings Chlorination and more, claim sources.