24 April 2019 : Neogen Chemicals Limited (the “Company”), one of India’s leading manufacturers of bromine-based, and lithium-based, specialty chemicals, raises Rs 39.70 crore from 7 anchor investors at Rs 215 per share.
The anchor investors include: SBI CONTRA FUND – 22.67%; SBI MAGNUM COMMA FUND – 15.11%; SBI LONG TERM ADVANTAGE FUND SERIES IV – 4.29%; SBI LONG TERM ADVANTAGE FUND SERIES V – 10.83%; AXIS MUTUAL FUND TRUSTEE LIMITED – AXIS SMALL CAP FUND – 21.92%; SUNDARAM MUTUAL FUND – SUNDARAM SMALL CAP FUND – 12.59%; L&T MUTUAL FUND TRUSTEE LIMITED – L&T EMERGING OPPORTUNITIES FUND – SERIES I – 12.59%.
The IPO consists of a fresh issue aggregating up to Rs. 700.00 million by the company (Fresh Issue) and an offer for sale of up to 1,699,600 equity shares by Haridas Thakarshi Kanani (Promoter Selling Shareholder) and up to 1,200,400 equity shares by Beena Haridas Kanani (‘Promoter Group Selling Shareholder’, and along with the Promoter Selling Shareholder collectively referred to as the ‘Selling Shareholders’).
The Bid/Offer Closing Date will be on April 26, 2019. Bids can be made for a minimum lot of 65 Equity Shares and in multiples of 65 Equity Shares thereafter.
The Equity Shares are proposed to be listed on BSE and NSE (the “Stock Exchanges”).
The net proceeds from the Fresh Issue are proposed to be utilized for: (i) Prepayment or repayment of all or a portion of certain borrowings availed by the Company; (ii) Early redemption of 9.8% FRCPS; (iii) Long term working capital; and (iv) General corporate purposes.
The Book Running Lead Manager (“BRLM”) to the Offer is Inga Advisors Private Limited and Batlivala & Karani Securities India Private Limited is the Co-Book Running Lead Manager (“CBRLM”) to the Offer.
This Offer is being undertaken in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (SCRR) read with Regulation 41 of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (SEBI ICDR Regulations). The Offer is being made through the Book Building Process in accordance with Regulation 26(1) of the SEBI ICDR Regulations, wherein not more 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (QIBs) (QIB Portion), provided that our Company may, in consultation with the BRLM and CBRLM, allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (Anchor Investor Portion), out of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis only to Mutual Funds, and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price.
Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation on a proportionate basis to Retail Individual Investors in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. All Bidders, other than Anchor Investors, shall participate in the Offer mandatorily through the Applications Supported by Blocked Amount (ASBA) process by providing the details of their respective bank accounts in which the corresponding Bid Amount will be blocked by the SCSBs, or under the UPI Mechanism. Anchor Investors are not permitted to participate in the Offer through the ASBA process.