Neptune Petrochemicals, an asphalt manufacturing company, made a strong stock market debut today on the NSE SME platform.
Although its IPO was not accessible to retail investors due to a high minimum investment amount, the company’s shares still saw good demand.
The IPO was priced at ₹122 per share, and it listed today at ₹132.75—giving investors a listing gain of 8.81%.
The momentum continued after listing, with the share price rising to ₹136, bringing the total gain to 11.47%.
Why Retail Investors Missed Out
The IPO was open for subscription from May 28 to May 30 and aimed to raise ₹73.20 crore. The lot size was 1000 shares, and bidding was allowed only for a minimum of 2 lots.
This meant the minimum investment was over ₹2 lakh, keeping retail investors out. Despite this, the IPO was subscribed 4.11 times overall.
The portion reserved for Qualified Institutional Buyers (QIB) was subscribed 7.12 times, while Non-Institutional Investors (NII) subscribed 2.91 times. Under the IPO, the company issued 60 lakh new shares with a face value of ₹10.
How the IPO Funds Will Be Used
The funds raised through the IPO will be used in the following way:
₹5.15 crore for new plant and machinery
₹14.75 crore for purchasing office space
₹42 crore for working capital needs
The remaining amount for general corporate purposes
Company Overview: Neptune Petrochemicals
Neptune Petrochemicals was established in October 2021 and focuses on manufacturing asphalt and related products.
It operates three manufacturing units—Unit 1 in Ahmedabad (Gujarat), Unit 2 in Panipat (Haryana), and Unit 3 in Kamrup (Assam). The company also exports its products to Nepal and Bhutan.
Financial Performance of the Company
The company’s financial growth has been impressive in recent years:
In FY 2022, it earned a net profit of ₹68 lakh
In FY 2023, net profit rose to ₹10.39 crore
In FY 2024, profit further increased to ₹20.82 crore
However, the revenue has shown some fluctuations:
FY 2022 revenue was ₹82.16 crore
FY 2023 revenue jumped to ₹709.31 crore
FY 2024 revenue slightly dipped to ₹675.97 crore
For the current financial year 2024–25 (April to December 2024), the company has already reported a net profit of ₹19.47 crore and revenue of ₹620.16 crore.
