As 2025 heads into its final quarter, SME IPOs from niche sectors continue to draw investor interest. One such issue is Neochem Bio Solutions Limited, a speciality performance chemicals manufacturer that caters to textiles, home and personal care, water treatment, construction, paints, and more.
The Neochem Bio IPO opens on December 2, 2025. Here is a detailed look at the company, its IPO structure, financials, and business outlook.
About Neochem Bio Solutions Ltd.
Incorporated in 2006, Neochem Bio Solutions Ltd. is engaged in the manufacture of speciality performance chemicals. Its products are used across a wide range of industries, including:
- Textile and garment washing
- Home and personal care (HPC)
- Institutional and industrial cleaners
- Water treatment
- Paints and coatings
- Paper and pulp
- Construction sector
- Rubber
- Dyes and pigments
The company offers a comprehensive range of textile and garment washing auxiliaries for pre-treatment, dyeing, finishing, printing, and coating applications across different fabrics and garment substrates, compatible with various processing machines.
- Manufacturing Facility:
- Location: Saket Industrial Estate, Village Moraiya, Taluka Sanand, District Ahmedabad
- Installed capacity: 22,000 MTPA
- Plant area: 6,763 square meters
Competitive Strengths:
- Strengthening presence across multiple end-user industries
- Focus on developing innovative and sustainable performance chemistries
- Strategy to expand geographical reach
- Ability to leverage existing strategic collaborations and partnerships
Promoters of the company are Swapnil Rameshbhai Makati and Hemangini Swapnil Dathia.
Neochem Bio IPO Details
| IPO Date | December 2, 2025 to December 4, 2025 |
| Face Value | ₹10 per share |
| Issue Price Band | ₹93 to ₹98 per share |
| Lot Size | 1200 shares |
| Sale Type | Fresh Capital |
| Total Issue Size | 45,88,800 shares (aggregating up to ₹44.97 Cr) |
| Reserved for Market Maker | 2,32,800 shares (aggregating up to ₹2.28 Cr)Rikhav Securities Ltd. |
| Net Offered to Public | 43,56,000 shares (aggregating up to ₹42.69 Cr) |
| Issue Type | Bookbuilding IPO |
| Listing At | NSE SME |
| Share Holding Pre Issue | 1,25,31,953 shares |
| Shareholding Post Issue | 1,71,20,753 shares |
| Lead Manager | Vivro Financial Services Pvt. Ltd. |
| Registrar | MUFG Intime India Pvt. Ltd. |
| Market Maker | Rikhav Securities Ltd. |
Important IPO Timeline
| Event | Date |
| IPO Open Date | December 2, 2025 (Tue) |
| IPO Close Date | December 4, 2025 (Thu) |
| Basis of Allotment (Tentative) | December 5, 2025 (Fri) |
| Initiation of Refunds | December 8, 2025 (Mon) |
| Credit of Shares to Demat | December 8, 2025 (Mon) |
| Listing Date (Tentative) | December 9, 2025 (Tue) |
| Cut off time for UPI mandate confirmation | 5 PM on December 4, 2025 |
Neochem Bio IPO Reservation
As per the issue structure, the reservation across investor categories is as follows:
| Investor Category | Shares Offered |
| QIB | Not more than 50% of the net issue |
| Retail | Not less than 35% of the net issue |
| NII | Not less than 15% of the net issue |
Neochem Bio IPO Lot Size
| Application | Lots | Shares | Amount |
| Individual investors (Retail) (Min) | 2 | 2,400 | ₹2,35,200 |
| Individual investors (Retail) (Max) | 2 | 2,400 | ₹2,35,200 |
| S-HNI (Min) | 3 | 3,600 | ₹3,52,800 |
| S-HNI (Max) | 8 | 9,600 | ₹9,40,800 |
| B-HNI (Min) | 9 | 10,800 | ₹10,58,400 |
Neochem Bio Solutions Ltd. Financials
Neochem Bio Solutions Ltd. Financial Information (Restated, ₹ crore):
| Period Ended | 30 Sep 2025 | 31 Mar 2025 | 31 Mar 2024 | 31 Mar 2023 |
| Assets | 96.49 | 78.89 | 64.06 | 50.60 |
| Total Income | 47.18 | 86.15 | 62.01 | 48.79 |
| Profit After Tax | 5.48 | 7.75 | 1.80 | 1.07 |
| EBITDA | 8.59 | 13.11 | 5.99 | 4.23 |
| Net Worth | 32.24 | 19.75 | 12.00 | 8.05 |
| Reserves and Surplus | 19.70 | 13.08 | 5.33 | 2.63 |
| Total Borrowing | 38.54 | 35.62 | 33.32 | 26.24 |
Between FY 2024 and FY 2025, the company’s revenue increased by 39% and PAT grew by 330%, indicating strong earnings momentum.
Key Performance Indicators (KPI)
| KPI | Value |
| ROE | 48.82% |
| ROCE | 41.67% |
| Debt to Equity | 1.80 |
| RoNW | 48.82% |
| PAT Margin | 9.00% |
| EBITDA Margin | 15.58% |
| Price to Book Ratio | 5.80 |
| Market Capitalization | 167.78 Cr |
EPS & P/E Ratio
| Pre IPO | Post IPO | |
| EPS (₹) | 6.18 | 6.41 |
| P/E (x) | 15.85 | 15.3 |
Promoter Holding:
| Pre Issue | Post Issue | |
| Promoter Holding | 91.12% | 66.7% |
Objects of the Issue
The company plans to utilise the Net Proceeds from the Neochem Bio IPO for the following purposes:
| S. No. | Object of the Issue | Amount (₹ in Crore) |
| 1 | Funding long-term working capital requirements of the company | 23.90 |
| 2 | Repayment or prepayment, in full or part, of certain outstanding borrowings | 10.00 |
| 3 | General corporate purposes | Balance proceeds |
Neochem Bio: Industry Outlook
- Speciality performance chemicals play a critical role as enabling inputs across textiles, home and personal care, industrial cleaning, coatings, water treatment, and construction.
- As manufacturing, urbanisation, and consumption trends rise, demand for such performance additives and auxiliaries tends to grow.
- Neochem Bio’s focus on textile auxiliaries and multiple downstream segments helps diversify revenue away from dependence on a single industry.
- Its emphasis on innovation and sustainable chemistries can support long-term relationships with customers who are increasingly conscious of environmental and regulatory standards.
However, the sector also faces:
- Sensitivity to raw material price volatility
- Competition from domestic and international speciality chemical manufacturers
- Working capital-intensive operations and dependence on continuous capacity utilisation
Neochem Bio IPO: Peer Comparison
Neochem Bio IPO can be compared with speciality chemical players such as Aether Industries Ltd, Rossari Biotech Ltd, Fine Organic Industries Ltd, Galaxy Surfactants Ltd, and Godrej Industries Ltd. Analysing these peers gives investors a clearer view of Neochem Bio’s positioning within the speciality performance chemicals space and helps assess its competitiveness, scale, and growth potential relative to established industry leaders.
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Conclusion
Neochem Bio Solutions Ltd. is positioned as a speciality performance chemical manufacturer with a broad product portfolio and presence across several end-user industries. The company has delivered strong growth in revenue and profitability in recent years, along with healthy return ratios such as ROE and ROCE.
On the other hand, investors should note:
- Leverage remains on the higher side, although part of the proceeds will be used for debt repayment.
- The IPO is coming in the SME segment, where liquidity and volatility can be higher than in mainboard issues.
- Final valuation will depend on the announced price band and earnings sustainability going forward.
Investors considering the Neochem Bio IPO should evaluate their own risk appetite, time horizon, and view on the speciality chemicals space before making an application.
If you are exploring more investment opportunities, check out our dedicated page on upcoming IPO listings to stay updated on the latest market offerings.
