Neptune Petrochemicals
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 28 May 2025 – 30 May 2025
- Listing date
- 04 Jun 2025
- Face value
- ₹10 per share
- Issue price
- ₹122 per share
- Lot size
- 1,000 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹73.20 Cr
- Market cap at offer price
- ₹276 Cr
- Promoter holding
- 94.30% → 70.30% pre-issue → post-issue
- ISIN
- INE156901014
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- Block-B, Office No.606, Mondeal Heights Nr., Panchratna Party Plot, S.G.Highway, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 17,09,000 | — | — |
| Market maker | 3,00,000 | — | — |
Application size
Minimum 1,000 shares per lot, in multiples, at ₹122
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,000 | ₹1,22,000 |
| S-HNI (min) | 2 | 2,000 | ₹2,44,000 |
| S-HNI (max) | 8 | 8,000 | ₹9,76,000 |
| B-HNI (min) | 9 | 9,000 | ₹10,98,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 13.87 | — |
| P/E (×) | 8.80 | — |
| Price to book (×) | 6.37 | — |
| Market cap | — | ₹276 Cr |
Key performance indicators
- Return on net worth
- 65.25%
- ROCE
- 65.00%
- PAT margin
- 3.12%
- EBITDA margin
- 3.04%
- NAV per share
- ₹19.16
- Price to book
- 6.37
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Neptune Petrochemicals
Neptune Petrochemicals Limited, formerly Neptune Petrochemicals Private Limited, was originally formed as a partnership firm M/s. Neptune Tradelink on April 3, 2021, and converted to a private limited company on October 21, 2021. It was further converted to a public limited company on July 16, 2024. The company has a diversified product portfolio including various grades of bitumen, polymer-modified bitumen, and crumb rubber-based modified bitumen. It operates three manufacturing units located in Ahmedabad (Gujarat), Panipat (Haryana), and Assam. The company generates revenue through both trading and manufacturing of bitumen products, with trading accounting for approximately 84.90% of revenue as of December 31, 2024. The company is well-positioned to benefit from infrastructure development trends in India and globally.
Company Analysis
from RHPNeptune Petrochemicals Limited is engaged in production, manufacturing, and trading of bitumen products, bitumen emulsions, and allied materials, serving the construction and industrial applications industries.
Neptune Petrochemicals Limited, formerly Neptune Petrochemicals Private Limited, was originally formed as a partnership firm M/s. Neptune Tradelink on April 3, 2021, and converted to a private limited company on October 21, 2021. It was further converted to a public limited company on July 16, 2024. The company has a diversified product portfolio including various grades of bitumen, polymer-modified bitumen, and crumb rubber-based modified bitumen. It operates three manufacturing units located in Ahmedabad (Gujarat), Panipat (Haryana), and Assam. The company generates revenue through both trading and manufacturing of bitumen products, with trading accounting for approximately 84.90% of revenue as of December 31, 2024. The company is well-positioned to benefit from infrastructure development trends in India and globally.
Objects of the Issue
- Funding capital expenditure requirement towards installation of additional plant and machinery and related infrastructure ₹515.10 Lakhs p.22
- Funding the capital expenditure for purchase of office space ₹1,474.58 Lakhs p.22
- Funding Working Capital Requirement ₹4,200.00 Lakhs p.22
- General Corporate Expenses p.22
- Funding capital expenditure requirement towards installation of additional plant and machinery and related infrastructure ₹515.10 Lakhs p.94
- Funding the capital expenditure for purchase of office space ₹1474.58 Lakhs p.94
- Funding Working Capital Requirement ₹4200.00 Lakhs p.94
- General Corporate Purpose p.94
- Working capital requirement p.275
- General corporate purposes p.275
- Issue expenses p.275
Issue Structure
- Total Issue
- Up to ₹[●] Lakhs (60,00,000 Equity Shares of Face Value ₹10 each)
- Fresh Issue
- Up to 60,00,000 Equity Shares aggregating to ₹[●] Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹[●] to ₹[●] (to be determined)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹10.00 per Equity Share
Business Model
The company generates revenue through two primary activities: (1) Trading of bitumen and fuel oils from international suppliers, which accounts for the majority of revenue, and (2) Manufacturing of bitumen products and bitumen emulsions at its three manufacturing facilities. The trading model involves purchasing bitumen from international suppliers and selling to customers in the construction and infrastructure industries. Manufacturing involves processing raw bitumen into specialized products including polymer-modified bitumen and crumb rubber-modified bitumen.
Business Segments
SWOT Analysis
- • Diversified bitumen product portfolio serving construction and infrastructure industries(p.22)
- • Positioned to benefit from strong global bitumen market growth driven by infrastructure expansion(p.22)
- • Multiple manufacturing units strategically located to serve regional markets effectively(p.32)
- • Management team with significant industry experience (20+ and 15+ years)(p.37)
- • Diverse product portfolio across multiple industries(p.135)
- • Strong industry experience and market knowledge(p.135)
- • Focused market segmentation enabling customized solutions(p.135)
- • Capacity to serve peak demand with large-scale orders(p.136)
- • Quality management and certifications(p.136)
- • Strategic geographic positioning near demand markets(p.137)
- • Market leadership in bitumen imports(p.133)
- • Experienced management leadership with industry expertise(p.134)
- • Founder with 20 years petrochemical industry experience(p.176)
- • Diversified product portfolio in bitumen and related products(p.202)
- • Industry recognition and awards(p.172)
- • No labour disputes or unionization(p.173)
- • Strong profitability and asset growth(p.199)
- • Diverse product portfolio tailored to road construction and infrastructure sectors(p.231)
- • Top importer of packed bitumen in India for calendar year 2024(p.243)
- • Multi-location manufacturing presence across India(p.243)
- • ISO and quality management certifications in place(p.244)
- • Experienced management with 20+ years industry expertise(p.244)
- • Regional presence extending to neighboring countries(p.244)
- • Heavy dependence on international suppliers for raw bitumen creates supply chain vulnerability(p.29)
- • Majority of revenue (84.90%) dependent on trading rather than manufacturing with lower margins(p.30)
- • Significant underutilization of installed manufacturing capacity (27.19% at Unit-I as of Dec 2024)(p.31)
- • High customer concentration with top 10 customers representing 39.55% of revenue(p.33)
- • Company relies on rented properties for operations including registered office(p.37)
- • History of non-compliance with financial reporting and statutory requirements(p.34)
- • High dependence on bitumen commodity prices and supply chain volatility(p.48)
- • Concentrated geographic presence - operates only in India(p.49)
- • High customer concentration risk(p.152)
- • Low capacity utilization at manufacturing facilities(p.155)
- • Declining revenue from operations(p.134)
- • Heavy reliance on raw bitumen suppliers(p.157)
- • Negative operating cash flows in recent periods(p.134)
- • Limited manufacturing capacity utilization across units(p.155)
- • Concentrated shareholder ownership among promoters(p.188)
- • High reliance on a few customers(p.208)
- • Recent appointment of key finance and compliance personnel(p.184)
- • Very recent conversion to public company structure(p.171)
- • Concentration of revenue from top customers(p.251)
- • Significant tax litigation pending against promoter with substantial demand(p.260)
- • Multiple GST compliance issues with pending orders and appeals(p.255)
- • Outstanding TDS liabilities across related partnership firms(p.260)
- • Growing demand for bitumen driven by infrastructure development and urbanization in emerging markets(p.22)
- • Opportunity to improve capacity utilization and operational efficiency across three manufacturing units(p.32)
- • Capacity to serve peak demand and large-scale projects with multiple manufacturing locations(p.32)
- • Polymer Modified Bitumen (PMB) manufacturing expansion(p.95)
- • Working capital expansion to support growth in construction/infrastructure sectors(p.99)
- • Expansion of manufacturing facilities with advanced equipment(p.137)
- • Growing bitumen market in India driven by infrastructure projects(p.129)
- • Government infrastructure initiatives increasing demand(p.131)
- • Rising demand for advanced bitumen products including PMB and CRMB(p.125)
- • Rapid urbanization and infrastructure development in India(p.120)
- • Growth in Asian-Pacific petrochemical market(p.126)
- • Expansion of customer base beyond top clients(p.137)
- • Export opportunities to neighboring countries(p.134)
- • Expansion of modified bitumen product range(p.171)
- • International market access through export capabilities(p.171)
- • Diversification into agro and food products(p.171)
- • Geographic expansion potential with registered office infrastructure(p.171)
- • Infrastructure development and road construction growth in India(p.244)
- • Volume growth despite commodity price pressures(p.247)
- • Geographic expansion capacity and market positioning(p.244)
- • Potential margin improvement through operational efficiencies(p.248)
- • Severe seasonal demand fluctuations during monsoon season affecting revenue and cash flow(p.30)
- • Bitumen costs highly vulnerable to crude oil price fluctuations affecting profitability(p.31)
- • Intense competition from both organized and unorganized players affecting margins(p.39)
- • Regulatory and environmental compliance risks including emissions, waste management, and contamination penalties(p.37)
- • Risk of supply disruptions and increased costs due to geopolitical issues and trade restrictions(p.29)
- • Foreign exchange risk from international transactions denominated in USD and AED(p.44)
- • Dependence on adequate power supply with vulnerability to tariff increases(p.40)
- • Economic slowdown and pandemic-related demand disruption(p.49)
- • Natural and man-made disasters affecting operations(p.48)
- • Competition Act penalties and regulation(p.48)
- • Indian tax regime undergoing substantial changes (GST, GAAR)(p.48)
- • Volatility in global financial markets affecting Indian economy(p.50)
- • Changes in Government economic policies and deregulation(p.50)
- • Pre-emptive rights restrictions limiting investor control(p.49)
- • Currency exchange rate fluctuations and capital flow restrictions(p.49)
- • Volatility in crude oil prices affecting raw material costs(p.151)
- • Economic downturns reducing demand for bitumen products(p.151)
- • Stringent environmental regulations increasing compliance costs(p.151)
- • Raw material price volatility impacting profitability(p.151)
- • Intense competition from multinational and domestic players(p.159)
- • Supply chain disruptions in raw material procurement(p.151)
- • Significant import dependence on raw materials(p.211)
- • Regulatory actions related to indirect taxes(p.211)
- • Dependence on container management and logistics(p.211)
- • Commodity price volatility risk(p.209)
- • Competitive pressure from petrochemical sector(p.202)
- • Commodity price volatility linked to crude oil prices(p.247)
- • Foreign exchange risk from import-dependent business model(p.247)
- • Seasonality and monsoon impact on road construction activities(p.251)
- • Regulatory and policy changes affecting petroleum products handling(p.244)
- • Competition from domestic and international players(p.245)
- • Economic recession and market cyclicality risks(p.244)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Pareshkumar Subodhchandra Shah | Promoter | 45.97% | 33.79% |
| Mrs. Riddhi Pareshkumar Shah | Promoter | 43.71% | 32.14% |
| Mr. Sanjaykumar Subodhchandra Shah | Promoter | 2.04% | 1.50% |
| Pareshkumar Subodhchandra Shah | Promoter | 45.97% | 33.79% |
| Riddhi Pareshkumar Shah | Promoter | 43.71% | 32.14% |
| Sanjaykumar Subodhchandra Shah | Promoter | 2.04% | 1.50% |
| Subodhchandra Sohchandbhai Shah | Promoter Group | 0.30% | 0.22% |
| Neha Sanjaykumar Shah | Promoter Group | 0.87% | 0.64% |
| Shah Aashay Sanjaykumar | Promoter Group | 0.09% | 0.07% |
| Sanjay S Shah (HUF) | Promoter Group | 0.60% | 0.44% |
| Vaishaliben Vora | Promoter Group | 0.42% | 0.31% |
| Shah Krupa Jasmin | Promoter Group | 0.30% | 0.22% |
| Pareshkumar Subodhchandra Shah | Promoter | 45.97% | — |
| Riddhi Pareshkumar Shah | Promoter | 43.71% | — |
| Sanjaykumar Subodhchandra Shah | Promoter | 2.04% | — |
| Paresh S. Shah | Promoter | 51.00% | — |
| Riddhi P. Shah | Promoter | 49.00% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.