Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.

    SUBMIT

Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence

Disclaimer:

Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
CO-PRESENTED BY
LIVE TV DownloadNews18 App
News18 English
272
nda:
Needmore seats to Win
Needmore seats to Win
upa:
»
1-min read

Neogen Chemicals Makes Strong Debut, Lists at Over 22% Premium

The net proceeds from the fresh issue, the company has proposed, be utilised for prepayment or repayment of loans, long-term working capital and general corporate purposes.

Trending Desk

Updated:May 8, 2019, 4:51 PM IST
facebookTwittergoogleskypewhatsapp
Neogen Chemicals Makes Strong Debut, Lists at Over 22% Premium
Representative image (Reuters)
Loading...
Neogen Chemicals Ltd made a stellar debut on stock exchanges on Wednesday, listing at over 22% premium over its issue price. The stock opened at Rs 251 on BSE and later rose to Rs 263.55, up 22.6% from the issue price of Rs 215. The Rs 132-crore initial public offer (IPO) was oversubscribed by 41.18 times.

Neogen Chemicals IPO was open for subscription from 24 April to 26 April in a price band of Rs 212-215 per share. The company is a manufacturer of bromine-based and lithium-based speciality chemicals. The company has posted compounded annual growth rate (CAGR) of 20% in revenue and 30% in profit in the last five years.

The net proceeds from the fresh issue were proposed to be utilised for prepayment or repayment of loans, long-term working capital and general corporate purposes.

Most of the brokerages were suggesting avoiding the issue given its high valuation. Choice Broking said at the higher price band of Rs 215 per share, Neogen Chemicals is valued at a P/E multiple of 47.8x (to its restated FY18 EPS of Rs 4.5), which is at a premium to its peer average of 38.8x. It also said that since the IPO size is lower than Rs250 crore, the shares will be listed in T-group, thereby restricting price movements in the stock.

Dalal Street Investment Journal said, “Looking at the weak balance sheet along with fair valuation, we believe that nothing is left in the table for subscribers and hence it is risky to invest in the issue.”

However, Anand Rathi advised investors to ‘subscribe’ to the IPO. It believed the higher multiple was justified given the company’s ability to grow profitably and command better return ratios.

(Get detailed and live results of each and every seat in the Lok Sabha elections and state Assembly elections in Andhra Pradesh, Odisha, Arunachal Pradesh and Sikkim to know which candidate/party is leading or trailing and to know who has won and who has lost and by what margin. Our one-of-its-kind Election Analytics Centre lets you don a psephologist’s hat and turn into an election expert. Know interesting facts and trivia about the elections and see our informative graphics. Elections = News18)
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
 
 
Most Active
Company Price Change %Gain
ICICI Bank 431.75 5.09
Reliance 1,336.85 0.22
SBI 355.35 3.84
IndusInd Bank 1,648.90 3.14
Larsen 1,544.15 4.61
Company Price Change %Gain
GRUH Finance 313.30 -4.42
Reliance 1,336.80 0.07
Larsen 1,543.65 4.60
SpiceJet 141.55 9.64
SBI 354.60 3.59
Top Gainers
Company Price Change %Gain
ICICI Bank 431.75 5.09
Larsen 1,544.15 4.61
Zee Entertain 376.85 4.55
JSW Steel 288.00 4.37
Bharti Airtel 353.20 4.25
Company Price Change %Gain
ICICI Bank 431.50 5.09
Larsen 1,543.65 4.60
Bharti Airtel 353.30 4.40
Vedanta 163.85 4.20
Tata Motors 182.15 4.09
Top Losers
Company Price Change %Gain
Tech Mahindra 735.85 -1.00
NTPC 129.15 -0.54
TCS 2,048.00 -0.29
HUL 1,749.60 -0.24
HCL Tech 1,065.95 -0.04
Company Price Change %Gain
NTPC 129.20 -0.54
HCL Tech 1,061.65 -0.46
TCS 2,049.65 -0.20
HUL 1,749.20 -0.10

Live TV

Loading...
Countdown To Elections Results
  • 01 d
  • 12 h
  • 38 m
  • 09 s
To Assembly Elections 2018 Results