Neptune Petrochemicals IPO

About Neptune Petrochemicals IPO

Neptune Petrochemicals Limited IPO is an IPO of ₹73.20 crores. It consists of a fresh issue of up to 60,00,000 equity shares. The listing of shares on the stock exchanges will take place on June 4, 2025. The shares will be allotted on June 2, 2025. The credit of shares to the demat account will take place on June 3, 2025 and the initiation of refunds will take place on June 3, 2025.

Objective of Neptune Petrochemicals IPO

• Funding capital expenditure requirements towards installation of additional plant and machinery and related infrastructure.
• Funding the capital expenditure for purchase of office space.
• Funding working capital requirements.
• General corporate purpose.

Industry Outlook

The petrochemical industry is a cornerstone of modern economies, transforming crude oil and natural gas into a vast array of products that touch nearly every aspect of everyone’s lives. Over the past few decades, the petrochemical industry has grown significantly due to urbanisation, rising disposable incomes, and population growth.

India's petrochemical sector has witnessed substantial growth, driven by increasing industrialisation, urbanisation, and rising disposable incomes. The sector plays a crucial role in the nation's economic development, contributing significantly to GDP and employment.

The Indian chemicals industry ranks 6th in the world and 4th in Asia. India ranks 14th in the world for export of chemicals and 10th in the world for import of chemicals. The share of export and import of chemicals and petrochemicals is 11.2% and 10.6% in the total national exports and imports in 2017–18. India's GDP stood at US$2,70,000 crores during 2018. With an annual envisaged growth rate of 7%, India's GDP is assessed to reach US$5,00,000 crores by 2025, and their economy is expected to be among the 5th largest of the world's economies by 2025.

India's bitumen market has witnessed substantial growth in recent years, driven by the government's ambitious infrastructure development plans. The country's extensive road network, coupled with rapid urbanisation, has created a robust demand for bitumen. The Indian bitumen market attained US$460 crore in 2022 and is projected to reach US$680 crore by 2032, growing at a CAGR of 4.0% from 2023 to 2032.

Company Information

Their company is engaged in the business of manufacturing and trading of a comprehensive range of bitumen products, bitumen emulsions, and allied products. With a diverse product portfolio that includes various grades of bitumen, modified bitumen like Polymer Modified Bitumen, Crumb Rubber based modified bitumen and oils, it serves a broad range of industries, particularly the construction and industrial applications. They offer a broad range of products tailored to the needs of the road construction and infrastructure industries. Their company is also engaged in the trading of bitumen and fuel oils. In some cases, they source bitumen and oils from reputable suppliers to ensure high quality and reliability, catering to the needs and requirements of their customers.

Risks of Neptune Petrochemicals IPO

• Their dependence on international suppliers for raw bitumen and petroleum oils could lead to supply disruptions due to geopolitical issues, trade restrictions, or logistical challenges, which may affect operational performance and financial condition.

Political instability, diplomatic conflicts, or changes in international relations can disrupt the supply chain, leading to delays or interruptions in receiving raw bitumen. Tariffs, export bans, or changes in trade policies imposed by exporting or importing countries could impact the availability and cost of raw bitumen. Also, transportation delays, shipping disruptions, or port congestion can affect the timely delivery of raw bitumen to their manufacturing facilities.

• The majority of their revenue comes from the trading of bitumen and allied products, which exposes them to price fluctuations and supply chain disruptions, which can affect profitability and financial stability.

The majority of their revenue is derived from the trading of bitumen and fuel oils, which exposes them to several vulnerabilities. As a trader, they depend on purchasing bitumen from suppliers and selling it to customers, making them vulnerable to changes in global bitumen prices, supply disruptions, and shifts in demand.

• Their business is subject to seasonal fluctuations, particularly during the monsoon season. The primary risk associated with this period is a potential slowdown in road construction and other construction activities, which directly impacts the demand for bitumen products.

During the monsoon season, the frequency and scope of road construction and construction activities typically decrease. A slowdown in construction activities can result in decreased sales volumes and revenue, and also affect production schedules and inventory management.

Anchor Investor Information

The Anchor Investor Bid/Issue Period shall be one Working Day prior to the Bid/Issue Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Beeline Capital Advisors Private Limited

Registrar for the IPO is MUFG Intime India Private Limited

Business Model

The company earns its revenue through the following sources:

Manufacturing and trading of a comprehensive range of bitumen products, bitumen emulsions, and allied products.

Company Growth Trajectory

Revenue from operations for the period that ended on 31 December 2024, amounting to ₹614.33 crores, represented 99.06% of total revenue. Other income for the period that ended on 31 December 2024, amounting to ₹5.84 crores, represented 0.94% of the total revenue. The profit after tax for the period that ended 31 December 2024 was ₹19.47 crores, representing 3.14% of the total revenue.

Company Market Position

Neptune is a key player in India's bitumen sector, consistently maintaining a strong market position in bitumen imports in India. Furthermore, Neptune has emerged as the top importer of PKD (packed) bitumen in India for the calendar year 2024 (Source: Rex Fuels-Bitumen Weekly Report-January 27, 2025 to January 31, 2025). With a presence across India and neighbouring countries like Nepal and Bhutan, they are well-positioned to continue supporting infrastructure development.

How To Check Allotment Status of Neptune Petrochemicals IPO?

You can check the allotment status of shares either on the website of the National Stock Exchange (NSE) or on the website of the registrar MUFG Intime India Private Limited.

To check the status on the NSE website:

• Visit the NSE website
  
• Click on “Investor Services” and choose “Application Status Check”
  
• Choose the issue type — Equity or Debt (Equity in this case)
  
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Neptune Petrochemicals Limited
  
• Enter your application number or PAN number
  
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status
  

Follow these steps to know the allotment status on the registrar’s website:

• Visit the MUFG Intime India Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Neptune Petrochemicals Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How to Apply for Neptune Petrochemicals IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for
• Step 3: Enter UPI ID: After entering your UPI ID, click submit. This will place your bid with the exchange
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds
• Step 5: Approve Request: Your funds will be blocked once you approve the mandate request on your UPI