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NEOCHEM IPO

Neochem Bio Solutions Limited
Start Date02-12-2025
Application Timing10am-5pm
Price Range₹93 - ₹98
Min Qty1200
Min. Investment₹111600
Listing Date09-12-2025
Close Date04-12-2025

About Neochem Bio Solutions Limited

Neochem Bio Solutions Ltd., established in 2006, is engaged in the manufacturing of specialty performance chemicals. The company supplies its products to a wide range of industries including textile and garment washing, home and personal care (HPC), institutional and industrial cleaning, water treatment, rubber, construction, paints and coatings, dyes and pigments, paper and pulp.

Neochem Bio provides a comprehensive portfolio of textile and garment washing auxiliaries that support applications such as pre-treatment, dyeing, printing, finishing, and coating. These products are compatible with various machines and fabric types.

The company operates a manufacturing facility located at Saket Industrial Estate in Ahmedabad, with an installed capacity of 22,000 MTPA spread across 6,763 sq. meters. Over the years, Neochem Bio has positioned itself strongly in performance chemistry solutions with a focus on sustainable and innovative product development.

Why To Invest in Neochem Bio Solutions Limited

Strong Industry Presence: The company caters to multiple high-demand sectors, reducing industry-specific risk and ensuring business stability.

Financial Growth: The company recorded a revenue growth of 39% and a significant rise in PAT by 330% between FY 2024 and FY 2025.

Healthy Return Ratios: ROE and ROCE stand at 48.82% and 41.67%, indicating efficient capital utilization and profitability.

Future Expansion Focus: The IPO proceeds will be used for working capital and repayment of borrowings, supporting future expansion and reducing debt burden.

Growing Demand in End-User Sectors: Increasing demand in textile processing, home care, and industrial cleaning may help the company grow further.

Financial Table
Period Ended 30 Sep 2025 31 Mar 2025 31 Mar 2024 31 Mar 2023
Assets96.4978.8964.0650.60
Total Income47.1886.1562.0148.79
Profit After Tax5.487.751.801.07
EBITDA8.59 13.115.994.23
NET Worth32.2419.7512.008.05
Reserves and Surplus19.7013.085.332.63
Total Borrowing 38.5435.6233.3226.24
Strengths And Risks
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Diverse Industry Presence: The company serves multiple sectors including textiles, home care, industrial cleaning, water treatment, and coatings, reducing reliance on any single market.
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Strong Focus on Innovation: Neochem Bio continuously works on developing high-performance and sustainable chemical solutions, helping it stay competitive in a growing specialty chemical market.
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Established Manufacturing Capacity: The company operates a well-equipped plant with an installed capacity of 22,000 MTPA, supporting higher production scalability and operational efficiency.
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Expansion Strategy: Neochem Bio plans to widen its geographical footprint and explore new end-user applications, which may support long-term revenue growth.
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Strategic Collaborations: Existing partnerships and industry relationships help the company diversify applications and strengthen its product portfolio across various customer segments.
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Competitive Market Environment: The specialty chemical industry includes several established domestic and global players, which may impact pricing and customer acquisition.
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Raw Material Dependency: Fluctuations in raw material prices may directly affect margins and cost efficiency, especially in volatile market conditions.
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Industry Concentration Risk: Although diversified, the business still depends significantly on specific industrial segments, which may expose it to sector-based demand variations.
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Borrowing Pressure: The company has notable debt, and interest obligations may affect short-term profitability until repayment plans are executed.
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Regulatory and Compliance Risk: As a chemical manufacturer, Neochem Bio must comply with environmental and industrial regulations. Any change or non-compliance may increase operational costs or affect production.
FAQs
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