Neogen Chemicals Ltd. hits the stock market debut on the National Stock Exchange with a 16.7 percent premium, listing at Rs 251 apiece. That’s compared to a Rs 215 issue price. The stock rose 22.6 percent thereafter hitting the daily upper price limit.
The reserved category for qualified institutional buyers was subscribed 30.49 times and non-institutional investors 113.88 times. The retail portion was oversubscribed 16.06 times.The maker of bromine and lithium-based derivatives maker’s Rs 132.35 crore IPO was oversubscribed 41 times.
The company said it would use the proceeds from the fresh issue to prepay or repay of all or part of certain borrowings, early redemption of 9.8 percent fully redeemable cumulative preference shares, long-term working capital and general corporate purposes.
Joint Managing Director Harin Kanani said, “we believe the funds that we have raised should be sufficient enough, [along] with the cash and internal accruals,…to continue growth for the next four to five years with a very comfortable debt equity ratio.”