Specialty chemicals maker Neogen Chemicals Ltd has received approval from the capital markets regulator to float an initial public offering (IPO).
The Securities and Exchange Board of India (SEBI) issued final observations to Neogen's IPO proposal on 8 February, according to information on the regulator’s website.
Six companies, including Neogen, have now received regulatory approval this year to go public. Last year, SEBI had approved 72 IPO proposals.
Neogen had filed its draft proposal last November.
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.
Neogen 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.
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.
Last year, specialty chemical maker Galaxy Surfactants Ltd made a positive stock market debut after an IPO that was subscribed 20 times.
Another specialty chemicals maker that went public last year was Fine Organics Industries Ltd. The company's IPO was covered 8.8 times and had gained a tad on its trading debut in July 2018.
Neogen joins a long list of companies preparing for their IPOs. However, several companies are now rethinking their plans after the stock markets fell since touching a record high in August.
Inga Advisors Pvt. Ltd and Batlivala & Karani Securities India Pvt. Ltd are managing Neogen’s IPO.