#NeochemBioIPO #IPOAlert #SpecialtyChemicals #NSEEMERGE #DalalStreet #TextileChemicals #IPOIndia #SMEIPO #CapitalMarket #GujaratManufacturing
AHMEDABAD: — Neochem Bio Solutions Limited, a Gujarat-based manufacturer of specialty performance chemicals, is set to launch its Initial Public Offering (IPO) next week, becoming the latest SME player to tap the capital markets to fund its expansion. The IPO, which is an entirely fresh issue of shares, aims to raise nearly ₹45 crore to bolster the company’s manufacturing and working capital needs.
The public subscription window for the Neochem Bio Solutions IPO will open on Tuesday, December 2, and close on Thursday, December 4, 2025. The company has established a price band of ₹93 to ₹98 per share for the issue.
IPO Details and Timeline at a Glance
The IPO is a book-building issue on the NSE Emerge platform (NSE SME).
| Event | Date (Tentative) | Details |
| Anchor Book Opening | December 1, 2025 (Monday) | One-day window for Anchor Investors |
| IPO Subscription Open | December 2, 2025 (Tuesday) | Public subscription begins |
| IPO Subscription Close | December 4, 2025 (Thursday) | Public subscription ends |
| Basis of Allotment | December 5, 2025 (Friday) | Finalisation of share allotment |
| Listing Date | December 9, 2025 (Tuesday) | Expected listing on NSE Emerge |
The total issue size is 45.88 lakh shares, which aggregates to approximately ₹44.97 crore at the upper price band of ₹98. Vivro Financial Services is serving as the Lead Manager for the IPO.
Funding Future Growth and Expansion
The entire proceeds from the IPO constitute a fresh issue, meaning all funds will directly flow into the company to support strategic objectives. The planned utilization of the funds is as follows:
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Long-Term Working Capital: ₹23.9 crore (The largest portion, dedicated to supporting day-to-day operations and growth momentum).
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Debt Repayment: ₹10 crore (For repayment or prepayment of certain existing borrowings, strengthening the balance sheet).
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General Corporate Purposes: The remainder of the net proceeds will be used for general corporate activities, including business development and inorganic growth opportunities.
Business and Financial Strength
Neochem Bio Solutions, with a legacy spanning over four decades, specializes in manufacturing specialty performance chemicals with a diverse portfolio of over 350 customized formulations. While known for its textile and garment washing auxiliaries, the company also caters to multiple high-growth downstream sectors, including:
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Home & Personal Care (HPC)
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Institutional and Industrial Cleaners
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Paints and Coatings
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Dyes and Pigments
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Water Treatment
The company operates a state-of-the-art manufacturing facility in Sanand, Gujarat, boasting an installed capacity of 22,000 metric tons per annum (MTPA).
The company has demonstrated robust financial performance leading up to the IPO:
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FY 2025 Performance: Profit after Tax (PAT) increased sharply by 330.6% to ₹7.8 crore, while revenue grew by 37.7% to ₹84.2 crore compared to the previous fiscal year.
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H1 FY 2026: For the six months ended September 2025, the company reported a profit of ₹5.48 crore on a revenue of ₹45.8 crore, indicating sustained profitability.
The company holds strong return ratios, with a Return on Equity (ROE) reported at 48.82% for FY25, and high-level product certifications like ZDHC Level 3 and GOTS 7.0, underscoring its commitment to sustainable and high-quality chemical manufacturing.
The Specialty Chemicals Advantage
Neochem Bio Solutions is entering the market at a time when the Indian specialty chemicals sector is experiencing strong tailwinds, driven by domestic industrial expansion and the global “China Plus One” diversification strategy. The overall India Textile Chemicals Market, a core segment for Neochem, was valued at approximately $2.3 Billion in 2024 and is projected to grow at a Compound Annual Growth Rate (CAGR) of over 4.9% through 2033.
However, investors should note the inherent risks associated with the sector, including reliance on the performance of the textile industry for a substantial portion of revenue, and the capital-intensive nature of chemical manufacturing which necessitates continuous capacity utilization.
The Neochem Bio Solutions IPO offers investors a chance to participate in the growth of a specialized chemical player focused on high-value performance additives and bio-based sustainable solutions, backed by strong recent financial growth and a large, modern production facility.
#NeochemBioIPO #IPOAlert #SpecialtyChemicals #NSEEMERGE #DalalStreet #TextileChemicals #IPOIndia #SMEIPO #CapitalMarket #GujaratManufacturing
Source: NSE Portal
