Neogen Chemicals gets nod for initial public offer

Specialty chemicals maker Neogen Chemicals has received capital markets regulator Sebi's go ahead to float an initial public offering. With this, the total number of company getting Sebi's clearance for the public issues -- initial public offer (IPO) and follow on public offer (FPO) -- has reached to seven, so far in the new year.

Neogen Chemicals, which had filed its IPO papers with Sebi in November last year, obtained the regulator's "observations" on February 8, latest update available with the capital markets watchdog showed.

Securities and Exchange Board of India's (Sebi) observation is necessary for any company planning to launch public issues. Going by the draft papers, Neogen Chemicals' initial share sale comprises fresh issuance of shares aggregating up to Rs 70 crore and an offer for sale of up to Rs 29 lakh by the company's promoters.

The company is a leading manufacturer of bromine-based and lithium-based specialty chemicals. Proceeds of the issue will be utilised towards repayment of certain borrowings availed by the company, long-term working capital, and for general corporate purposes.

"Our company expects to receive the benefits of listing of equity shares on stock exchanges, including among other things, enhancing the visibility of our brand and company," as per the draft papers.

Inga Advisors and Batlivala & Karani Securities India will manage the company's initial public offer (IPO). The equity shares are proposed to be listed on BSE and NSE.