The specialty-chemicals manufacturer Neochem Bio Solutions is launching its Initial Public Offering (IPO) between December 2 and December 4, 2025, aiming to raise approximately ₹44.97 crore through a fresh issue. Priced at ₹93–₹98 per share, the issue comprises 45.88 lakh equity shares and is scheduled for listing on the NSE Emerge platform on December 9. Anchor investors have already committed around ₹12.77 crore. The company intends to deploy the proceeds toward working-capital needs, debt repayment, and general corporate purposes. Neochem’s diverse product portfolio serves industries ranging from textiles and personal-care to water treatment and coatings — making this IPO a potential opportunity to tap demand across multiple sectors.
Company at a Glance — What Neochem Does
Neochem Bio Solutions Ltd., formerly a private company, converted to a public-limited company in April 2025. The firm specialises in manufacturing specialty performance chemicals, offering over 350 customised formulations. These span four major segments — Polymers, Surfactants, Silicones, and Esters & bio-based sustainable solutions.
Neochem’s chemicals cater to a broad set of end-markets: textile and garment washing, home and personal care, industrial cleaning, water treatment, paints and coatings, paper and pulp, construction, rubber, and dyes/pigments. Its manufacturing facility is located at Moraiya, Ahmedabad, with an installed capacity of 22,000 MTPA and covering roughly 6,763 sq m.
This diversified product base positions Neochem well to capitalise on demand across multiple industries — a strength that could support sustainable growth if the company executes effectively.
The IPO: Key Details
Parameter
Detail
IPO Opening Date
December 2, 2025
IPO Closing Date
December 4, 2025
Issue Type
Fresh issue only — 45,88,800 equity shares
Price Band
₹93 – ₹98 per share
Face Value
₹10 per share
Total Issue Size
~₹44.97 crore
Lot Size (Retail)
1,200 shares per lot; min. investment ~₹1.17 lakh (at lower band)
Listing Platform
NSE SME (NSE Emerge)
Lead Manager / Registrar
Vivro Financial Services (Lead Manager), MUFG Intime India Private Limited (Registrar)
Anchor investors have already picked up 13.03 lakh equity shares at ₹98 per share, raising roughly ₹12.77 crore ahead of the public offering.
According to the company, the net proceeds will be used primarily to support long-term working capital needs and to repay or prepay certain outstanding borrowings. The remainder will go toward general corporate purposes.
Financial Performance Snapshot & Growth Prospects
For the six-month period ending September 2025, Neochem reported a revenue of ₹45.83 crore and profit after tax (PAT) of ₹5.5 crore. For fiscal year 2025 (ending March), revenue reached ₹84.17 crore, and PAT stood at ₹7.75 crore — a marked improvement over prior periods.
These results reflect healthy operational execution and an improving bottom line, supported by demand across multiple end-industries. For investors, this bodes well — especially if the company sustains capacity utilisation and maintains cost discipline.
Given the firm's diversified product mix, large addressable market across sectors, and relatively modest valuations (given the SME segment and IPO pricing), Neochem may present a compelling opportunity for long-term investors — provided macroeconomic and sector-specific conditions remain favourable.
Risk Considerations & What Investors Should Watch
- As a pure fresh-issue SME IPO, there is no offer-for-sale; hence, immediate gains will depend on aftermarket demand rather than equity dilution dynamics.
- Demand is contingent on performance-chemicals consumption across fragile sectors such as textiles, coatings, and consumer-goods manufacturing — all sensitive to commodity prices, regulatory changes, and global demand cycles.
- Execution risks remain: sustaining high capacity utilisation, managing working capital efficiently, and delivering on stated debt-repayment objectives will be critical for long-term investor value.
- SME-listed firms often see lower liquidity — investors should be prepared for potential volatility and limited trading volume post-listing.
Concluding Perspective
Neochem Bio Solutions’ upcoming IPO offers investors a chance to get in at early stage in a firm with a diversified chemical-product portfolio, exposure to multiple industrial verticals, and a demonstrated track record of recent growth. The modest issue size, reasonable price band, and clean fresh-issue structure make it accessible.
For those with a medium- to long-term horizon and an appetite for sectoral plays in chemicals and manufacturing, Neochem represents a speculative but potentially rewarding opportunity. That said, success will hinge on sustained demand, operational execution, and prudence in fund utilisation. Savvy investors, especially those comfortable with SME-level liquidity, may find value — but only if they balance ambition with due diligence.
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