Neogen Chemicals Ltd on Tuesday filed its draft red herring prospectus with the Securities and Exchange Board of India for an initial public offering.
The IPO comprises a fresh issue of shares to raise up to Rs 70 crore and an offer for sale of up to 2.9 million shares by promoters Haridas Thakarshi Kanani and Beena Haridas Kanani, according to its draft prospectus.
The duo together hold 15.2 million shares, or an 80.8% stake, in the company.
Haridas Kanani is the company's founder and chairman. The IIT-Bombay graduate set up Neogen in 1989, according to the company's website.
The company began business operations in 1991 at a factory at Mahape, Navi Mumbai. Thane, Maharashtra-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.
The company is following in the footsteps of about four dozen listed peers, including Blackstone-backed SH Kelkar & Co. Ltd, BASF India and Shree Pushkar Chemicals & Fertilisers.
Earlier this year, specialty chemical maker Galaxy Surfactants Ltd made a positive stock market debut after an IPO that was subscribed 20 times.
Another speciality chemicals maker that went public this year is Fine Organics Industries Ltd. The company's IPO was covered 8.8 times and it had gained a tad on its trading debut in July.
Neogen joins a long list of companies preparing for their IPOs. However, several companies are now rethinking their plans after stock markets fell since touching a record high in August.
Neogen reported a 35% jump in revenue from operations for the year through March 2018 to Rs 164 crore from Rs 121.4 crore the year before. Net profit climbed 36% to Rs 10.5 crore.
Inga Advisors Pvt. Ltd and Batlivala & Karani Securities India Pvt. Ltd are managing the Neogen IPO.
