Neogen Chemicals IPO opens; should you subscribe? Here's what analysts say

At the higher end of the issue price of Rs 215 a share, the stock is valued at nearly 20.1x FY18 EV/EBITDA and nearly 47.8x P/E

The initial public offer (IPO) by Neogen Chemicals, a leading manufacturer of bromine and lithium-based specialty chemicals, opens today. The IPO comprises an offer for sale (OFS) of 2.9 million equity shares, aggregating Rs 62.4 crore and fresh issue of 3.2 million equity shares aggregating Rs 70 crore in a price band of Rs 212 - Rs 215.

ABOUT THE COMPANY

Incorporated in 1991 in Mahape, Navi Mumbai, Neogen Chemicals is one of India’s leading manufacturers of bromine-based, and lithium-based, specialty chemicals. Over financial years 2014-18 (FY14-18), it reported revenue, EBITDA and PAT (profit after tax) CAGRs (compound annual growth