According to the latest grey market data, Neptune Petrochemicals’ IPO was commanding a GMP of Rs 0. With a fixed issue price of Rs 122 per share, the estimated listing price stands unchanged at Rs 122, suggesting no immediate listing gains for investors. While the GMP can be volatile and is an unofficial indicator, it does reflect the short-term sentiment in the unlisted market.
All eyes are now on listing to see whether Neptune Petrochemicals will manage to impress investors post-listing, or if the lacklustre GMP prediction will hold true.
The IPO, sized at Rs 73.20 crore, was a fresh issue of 60 lakh equity shares. It saw healthy interest with an overall subscription of 4.11 times. Qualified institutional buyers (QIBs) led the response, subscribing 7.12 times, while the non-institutional investor (NII) portion was subscribed 2.91 times. However, retail investors were more cautious despite a one-lot investment size of Rs 2.44 lakh.
Neptune Petrochemicals manufactures and markets various types of bitumen products, including polymer-modified and crumb rubber-modified bitumen. These products are widely used in infrastructure development, especially road construction. The company also trades fuel oils and exports to neighbouring countries like Nepal and Bhutan. It operates three manufacturing units located in Ahmedabad, Panipat, and Kamrup, catering to both domestic and overseas markets.
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The IPO proceeds are planned to be used for capital expenditure to install new machinery, purchase office space, meet working capital needs, and general corporate purposes. MUFG Intime India (Link Intime) is acting as the registrar to the issue, while Beeline Capital Advisors is the lead manager.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
