Neptune Petrochemicals Ltd, a Gujarat-based bitumen and petroleum products manufacturer, is launching its IPO on May 28, 2025, aiming to raise ₹73.20 crores through a combination of fresh issue and offer for sale.
🏭 Company Overview
Neptune Petrochemicals Ltd is a prominent manufacturer and trader of bitumen products, including various grades of bitumen, polymer-modified bitumen (PMB), crumb rubber modified bitumen (CRMB), and bitumen emulsions. The company primarily serves the road construction and infrastructure sectors. With manufacturing units located in Gujarat, Haryana, and Assam, Neptune Petrochemicals has established a significant presence in the Indian market.
Lot Size & Investment Details
| Appy as | Price Band | Lot Size | Share | Appy Upto |
| Retail (Min) | ₹115 – ₹122 | 1 lot | 1,000 shares | ₹1,22,000 |
| Retail (Max) | ₹115 – ₹122 | 1 lot | 1,000 shares | ₹1,22,000 (Retail limit) |
| S-HNI (Min) | ₹115 – ₹122 | 1 lot | 2,000 shares | ₹2,44,000 |
📊 Financial Highlights
| Financial Year | Revenue (₹ Cr) | Net Profit (₹ Cr) |
|---|---|---|
| FY 2022 | 82.16 | 0.68 |
| FY 2023 | 709.31 | 10.39 |
| FY 2024 | 675.97 | 20.82 |
🎯 Objects of the Issue
The net proceeds from the IPO will be utilized for:
- Capital Expenditure: Installation of additional plant and machinery and related infrastructure – ₹5.15 Crores
- Purchase of Office Space: ₹14.7 Crores
- Working Capital Requirements: ₹42 Crores
- General Corporate Purposes
📈 IPO Review & Recommendation
Strengths:
- Established Market Presence: Strong foothold in the bitumen industry with a diverse product portfolio.
- Financial Growth: Consistent increase in revenue and profitability over the past three years.
- Strategic Utilization of Funds: Planned investments in infrastructure and working capital to support future growth.
Risks:
- Dependence on Raw Material Imports: Reliance on international suppliers for raw bitumen and petroleum oils may lead to supply disruptions due to geopolitical issues or trade restrictions.
- Market Volatility: Exposure to price fluctuations in bitumen and allied products can affect profitability.
- Seasonal Demand: Business is subject to seasonal fluctuations, particularly during the monsoon season, which can impact demand.
Recommendation:
Considering the company’s strong financial performance and strategic growth plans, the IPO presents a promising opportunity for investors with a medium to long-term investment horizon. However, potential investors should be mindful of the associated risks and conduct thorough due diligence before investing.
