Neptune Petrochemicals IPO: Issue dates, price, and lot size

Neptune Petrochemicals Limited is set to enter the public markets with an initial public offering (IPO) worth ₹73.20 crores, comprising a fresh issue of 60 lakh equity shares. The IPO will be open for subscription from May 28 to May 30, 2025. The company is preparing for its listing on the NSE SME platform, scheduled for Monday, June 4, 2025.

The offering includes equity shares with a face value of ₹10 each, priced within a range of ₹115 to ₹122 per share, and a lot size of 2,000 shares. Retail investors can participate with a minimum investment of ₹1,15,000 (1 lot), while High Net-worth Individuals (HNIs) can bid for a minimum of ₹2,44,000 (2 lots). Share allotment is expected to be finalized by June 2, 2025. As a player in the petrochemical and bitumen solutions space, Neptune Petrochemicals’ public debut offers investors a chance to engage with a company positioned in the infrastructure and industrial materials sector.

Neptune Petrochemicals IPO details

Neptune Petrochemicals Limited IPO is a fundraise worth ₹73.20 crores comprising purely of a fresh issue with 60,00,000 shares. Qualified Institutional Buyers are being offered not more than 50% of the net issue, retail investors are being offered not less than 35% of the net issue and Non-Institutional Investors (NIIs) / High Net-worth Individuals (HNIs) are being offered not less than 15% of the net issue. The IPO will be available for subscription from May 28, 2025 to May 30, 2025, providing an opportunity for investors looking to gain a stake in the petrochemical space.

Neptune Petrochemicals IPO timeline

The Neptune Petrochemicals Limited IPO opens for subscription on May 28, 2025, and closes on May 30, 2025, with allotment scheduled for June 2, 2025.

Neptune Petrochemicals IPO review

Neptune Petrochemicals Limited, incorporated in October 2021, manufactures and trades a wide range of bitumen products, including polymer- and crumb-rubber-modified bitumen, serving sectors like construction and industrial applications. With three manufacturing units across Gujarat, Haryana, and Assam, the company also engages in trading bitumen and fuel oils, sourcing from trusted suppliers to ensure quality.

Certified in ISO 2015 standards for quality, environment, and occupational health & safety (OHSAS 2018), Neptune adheres to global benchmarks and exports to Nepal and Bhutan, alongside domestic sales. As of December 31, 2024, the company employed 59 people.

Neptune Petrochemicals Limited proposes to utilize the net proceeds from its IPO to support several key objectives, including funding capital expenditure for the installation of additional plant, machinery, and related infrastructure, purchasing office space, meeting working capital requirements, and covering general corporate expenses.

Neptune Petrochemicals IPO financials

The key performance indicators reflect the company's financial health with a Return on Equity of 65%, Return on Capital Employed (ROCE) at 65%. The Return on Net-Worth (RoNW) stands at 65.25%, and the PAT Margin was 3.12.

Amount in ₹ crores

Neptune Petrochemicals IPO strengths

Neptune Petrochemicals offers a diverse product portfolio that includes various grades of bitumen, polymer-modified bitumen (PMB), crumb-rubber-modified bitumen (CRMB), and fuel oils. These products serve multiple sectors such as road construction, airport infrastructure, railways, power generation, and other industrial applications—helping the company reduce reliance on any single market segment. The company operates a fully automatic batch-type bitumen emulsion plant capable of producing multiple grades of bitumen and emulsions. With production capacities built to manage both regular and peak seasonal demands, Neptune ensures timely bulk supply, especially for large-scale infrastructure projects where delivery timelines are critical.

To maintain operational efficiency, Neptune claims to follow demand forecasting and coordinated supplier planning to streamline raw material procurement and minimize delays. The company is certified under ISO 9001:2015 for quality management, ISO 14001:2015 for environmental management, and OHSAS 45001:2018 for occupational health and safety. Financially, Neptune has shown strong growth, with its profit after tax (PAT) rising consistently from ₹0.68 crore in FY22 to ₹10.39 crore in FY23 and ₹20.81 crore in FY24.

Neptune Petrochemicals IPO weaknesses

Neptune Petrochemicals faces several operational and financial risks due to its high dependence on imported raw materials and trading activities. A substantial portion of its raw bitumen and petroleum oils is sourced from international suppliers, with CIF import values accounting for over 80% of total purchases across recent periods. This reliance makes the company vulnerable to geopolitical tensions, trade restrictions, and logistical disruptions. Additionally, the majority of Neptune’s revenue is generated from the trading of bitumen and fuel oils—exposing the business to price volatility, supply chain uncertainties, and demand fluctuations. As bitumen is a byproduct of crude oil, any surge in global oil prices could significantly impact input costs, potentially affecting margins if such increases cannot be passed on to customers. The business is also seasonal in nature, with monsoon quarters typically seeing lower revenue due to reduced construction activity.

Furthermore, Neptune’s customer and supplier concentration poses additional risks. A significant share of revenue is derived from its top 10 clients, contributing nearly 40% as of the period ended December 31, 2024. Any loss of these clients or failure to diversify the customer base could hurt financial performance. Similarly, a large portion of raw material purchases comes from just three key suppliers, making the company susceptible to supply chain disruptions. Ongoing legal proceedings involving the company, its promoters, and directors also present potential liabilities. On the financial front, Neptune has recorded negative cash flows from operating, investing, and financing activities across multiple periods, signaling possible future liquidity challenges if these trends persist.

Should you invest in the Neptune Petrochemicals IPO?

Investing early in the IPO of Neptune Petrochemicals Limited may offer an opportunity to be part of the company’s growth journey, particularly in the evolving biofuels segment. However, potential investors should thoroughly evaluate various aspects such as the company’s operational history, financial performance, industry outlook, and strategic direction. It’s important to align this assessment with individual investment goals and risk tolerance. Reviewing the offer document in detail and consulting a financial advisor is advisable before making any investment decision.

FAQs

What is the Neptune Petrochemicals Limited IPO?

The Neptune Petrochemicals Limited IPO is an NSE SME offering consisting of 2,000 equity shares with a face value of ₹10, aiming to raise ₹73.20 crore. The price band has been set between ₹115 to ₹122 per share, with a minimum order quantity of 02,00 shares. This IPO will be open for subscription from May 28, 2025, to May 30, 2025. Beeline Capital Advisors Private Limited is the book-running lead manager, MUFG Intime India Private Limited is the registrar.

When will the Neptune Petrochemicals IPO open?

The Neptune Petrochemicals Limited IPO will open for subscription on May 28, 2025, and will close on May 30, 2025.

When is the Neptune Petrochemicals IPO listing date?

The tentative listing date for the Neptune Petrochemicals Limited IPO is Wednesday June 4, 2025.