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Neochem Bio Solutions Ltd. IPO: Complete Review & Analysis

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Neochem Bio Solutions

Neochem Bio Solutions IPO| Neochem Bio IPO GMP| Neochem Bio Solutions Ltd IPO date| SME IPO review 2025| Neochem Bio price band

Neochem Bio Solutions Ltd. is set to hit the primary market with its SME IPO opening on December 2, 2025. As a specialty performance chemical manufacturer with over four decades of legacy (including its predecessors), the company is garnering attention for its diverse product portfolio.

Here is a detailed breakdown of the issue, financial health, and investment potential.

1. IPO Details at a Glance

ParameterDetails
IPO Open DateDecember 2, 2025
IPO Close DateDecember 4, 2025
Listing Date (Tentative)December 9, 2025
Face Value₹10 per share
Price Band₹93 to ₹98 per share
Lot Size1,200 Shares
Total Issue SizeApprox ₹44.97 Cr
Listing ExchangeNSE SME
Retail Investment (Min)₹1,17,600 (at lower band) – ₹1,17,600

2. Business Model

Neochem Bio Solutions operates in the Specialty Performance Chemicals sector. They manufacture over 350 customized formulations spread across four key segments:

  1. Polymers
  2. Surfactants
  3. Silicones
  4. Esters & Bio-based Solutions

Key Industries Served:

  • Textile & Garment Washing
  • Home & Personal Care (HPC)
  • Water Treatment
  • Paints & Coatings
  • Construction

3. Financial Performance (Restated)

The company has shown robust growth leading up to the IPO.

  • Revenue Growth: Revenue jumped significantly from ₹62.01 Cr in FY24 to ₹86.15 Cr in FY25.
  • Profitability: Profit After Tax (PAT) saw a massive surge, rising to ₹7.75 Cr in FY25 from just ₹1.80 Cr in FY24.
  • Margins: The company boasts strong return ratios with an ROE of 48.82% and ROCE of 41.67% (as of FY25 data).
  • Debt: The Debt-to-Equity ratio stands at 1.80, which is on the higher side and is a key metric for investors to watch.

4. Objectives of the Issue

The funds raised from the IPO will be utilized for:

  • Working Capital: Funding long-term working capital requirements (₹23.90 Cr).
  • Debt Reduction: Repayment or prepayment of outstanding borrowings (₹10.00 Cr).
  • General Corporate Purposes: To support business growth and operations.

5. Neochem Bio IPO GMP (Grey Market Premium)

(Note: GMP is volatile and changes daily.)

As of late November 2025, the Grey Market Premium (GMP) is currently flat or reporting no major movement (₹0).

  • Expected Listing Price: ₹98 (at cap price)
  • Listing Gain: ~0% (Based on current GMP)

Investors should monitor GMP closely as the issue opening date approaches, as SME IPOs often see sudden shifts in sentiment.

6. Review: Should You Apply?

Strengths:

  • Diversified Portfolio: Not reliant on a single industry; serves textiles, construction, and personal care.
  • High Growth: The jump in PAT in FY25 is impressive.
  • Valuation: The P/E ratio appears competitive compared to peers like Rossari Biotech.

Risks:

  • Debt Levels: A debt-to-equity ratio of 1.80 is high, though IPO proceeds will help reduce this.
  • SME Liquidity: Like all SME IPOs, liquidity can be lower than mainboard IPOs, and lot sizes are larger.

Conclusion:

Neochem Bio Solutions presents a high-growth opportunity in the chemical sector. However, the high debt and flat GMP suggest a cautious approach. It may be suitable for high-risk investors looking for long-term value rather than immediate listing pops, unless GMP improves before the issue opens.

Neochem Bio Solutions IPO| Neochem Bio IPO GMP| Neochem Bio Solutions Ltd IPO date| SME IPO review 2025| Neochem Bio price band

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DateAnchorQIBNIIBNII(>10l)SNII(<10L)RetailTotal

GMP Trend:

DateGMP
The grey market premium (GMP) is the price at which an IPO is traded in an unofficial/unregulated grey market prior to its listing. The GMP reflects how a particular company’s IPO issue might react on the day of listing. A positive GMP premiumsignals that the IPO is likely to be at profit while a negative GMP indicates that the IPO is likely to be at a discount.
It should be noted that IPO GMP is subject to extreme volatility, so an investment decision based solely on Patel Retail IPO GMP will prove risky. Therefore, before to investing, consider all factors and make the right investment decision whether to invest in Patel Retail IPO or not.

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