May 28, 2025 – Neptune Petrochemicals Limited, a growing name in India’s petrochemical and bitumen industry, has launched its bookbuilt IPO of ₹73.20 crores, opening today, 28th May 2025, and closing on 30th May 2025. While the IPO is being closely monitored by investors and analysts, the lack of movement in the Grey Market Premium (GMP)—which currently stands at ₹0—is making investors question the listing potential of this issue.
Despite a flat GMP, Neptune’s improved financial performance and long-term infrastructure prospects are drawing the attention of long-term investors.
📦 IPO Overview: Key Details
| Detail | Information |
|---|---|
| IPO Open Date | 28th May 2025 |
| IPO Close Date | 30th May 2025 |
| Allotment Date | 2nd June 2025 |
| Refund Initiation | 3rd June 2025 |
| Listing Date | 4th June 2025 |
| Price Band | ₹115 to ₹122 |
| Lot Size | 1,000 shares |
| Minimum Investment | ₹1,22,000 |
| Issue Size | 60,00,000 shares (₹73.20 crores) |
| Market Maker Shares | 3,01,000 shares |
| Registrar | MUFG Intime India Pvt. Ltd. |
| Listing Exchange | NSE SME |
| Issue Type | Bookbuilt IPO |
💰 IPO Share Reservation
| Investor Category | Reservation |
|---|---|
| Qualified Institutional Buyers (QIB) | <50% of net issue |
| Retail Individual Investors (RII) | >35% of net issue |
| Non-Institutional Investors (NII) | >15% of net issue |
| Market Maker | 3,01,000 shares |
📈 Neptune Petrochemicals IPO GMP Trend (Grey Market Premium)
| Date | GMP (₹) | IPO Price (₹) | Estimated Listing Price (₹) | Estimated Gain (%) |
|---|---|---|---|---|
| 27-May-2025 | ₹0 | ₹122 | ₹122 | 0% |
| 26-May-2025 | ₹0 | ₹122 | ₹122 | 0% |
| 24-May-2025 | ₹0 | ₹122 | ₹122 | 0% |
A flat GMP signals a neutral listing sentiment, often driven by cautious investor outlook or conservative valuations.
🧾 Company Profile: What Does Neptune Petrochemicals Do?
Founded in 2021, Neptune Petrochemicals is engaged in the manufacturing and trading of various bitumen products such as:
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Polymer Modified Bitumen (PMB)
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Crumb Rubber Modified Bitumen (CRMB)
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Bitumen Emulsions
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Industrial & Construction-grade Fuel Oils
Neptune’s products serve core industries like road construction, waterproofing, industrial adhesives, and insulation.
📊 Financial Highlights: A Story of Growing Profits Amid Declining Revenue
| Fiscal Year | Revenue (₹ Cr) | PAT (₹ Cr) | Assets (₹ Cr) | Net Worth (₹ Cr) | Debt (₹ Cr) |
|---|---|---|---|---|---|
| FY22 (Mar 2022) | ₹82.16 | ₹0.68 | ₹97.51 | ₹0.69 | ₹0 |
| FY23 (Mar 2023) | ₹709.31 | ₹10.39 | ₹107.88 | ₹11.08 | ₹5.12 |
| FY24 (Mar 2024) | ₹675.97 | ₹20.82 | ₹120.95 | ₹31.90 | ₹0 |
| FY25 (Dec 2024, 9M) | ₹620.16 | ₹19.47 | ₹117.00 | ₹61.23 | ₹0.16 |
Key Takeaways:
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Revenue dipped 4.7% YoY in FY24, but PAT jumped 100.38%.
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Debt-free status enhances financial flexibility.
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Explosive PAT and Net Worth growth raise questions around sustainability and margins.
🔍 Technical Indicators
| Metric | Value |
|---|---|
| EPS | ₹13.87 |
| ROE | 65.00% |
| RoNW (Net Worth Return) | 65.25% |
| ROCE | 65.00% |
| PAT Margin | 3.12% |
| PE Ratio (Pre/Post IPO) | Not disclosed |
Impressive return ratios highlight capital efficiency, though low PAT margin (3.12%) signals tight profitability in a high-volume, low-margin segment.
📊 Peer Comparison
| Company | Revenue (₹ Cr) | PE Ratio | EPS (₹) | RoNW (%) |
|---|---|---|---|---|
| Neptune Petrochemicals | 668 | – | 13.87 | 65.25 |
| Agarwal Industrial Corp Ltd | 2,130 | 13.85 | 73.02 | 21.37 |
| Nexxus Petro Industries Ltd | 238 | 22.94 | 8.99 | 40.36 |
While Neptune leads in RoNW, its low revenue base and missing PE ratio indicate room for valuation caution.
🧠 Expert View: What Are Analysts Saying?
Dilip Davda (IPO Analyst):
“NPL is in a fragmented, low-margin industry. While PAT growth looks impressive, the bottom-line jump seems disproportionate to revenue trends. The IPO appears fully priced. Informed investors may consider this IPO for medium-term exposure.”
Investor Pros:
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High return ratios (ROE, RoNW)
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Debt-free financials
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Focused industry niche
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High growth in net profit
Investor Cons:
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Flat GMP suggests lukewarm sentiment
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Volatile margins in a highly competitive industry
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Lack of PE ratio transparency
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Fully priced issue
🛠️ IPO Objectives: How Will the Funds Be Used?
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Working Capital Requirements – To support scaling operations
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Purchase of Additional Machinery – Capacity expansion
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Capital Expenditure for Office Setup – Infrastructure boost
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General Corporate Purposes – Including admin and compliance
🗳️ How to Apply for Neptune Petrochemicals IPO?
Minimum Retail Application:
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Lot Size: 1,000 shares
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Investment: ₹1,22,000
HNI Category:
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Minimum Application: 2 lots (2,000 shares)
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Investment: ₹2,44,000
📩 How to Check IPO Allotment?
You can check allotment status in two ways:
1. Through NSE Website:
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Visit https://www.nseindia.com
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Go to IPO Allotment Section
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Select Equity & “Neptune Petrochemicals”
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Enter PAN or application number
2. Through Registrar Portal (MUFG Intime India):
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Select IPO > Allotment Status
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Enter relevant details (PAN/Application ID)
🔚 Conclusion: Should You Invest in Neptune Petrochemicals IPO?
The Neptune Petrochemicals IPO comes with a mixed outlook. On one hand, it showcases strong profitability growth and a lean balance sheet, while on the other, the flat GMP and moderate revenue contraction indicate investor skepticism.
✅ Recommended For:
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Medium-term investors with high-risk appetite
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Those bullish on the infrastructure and bitumen sector
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Investors seeking capital-efficient businesses
❌ Avoid If:
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You prefer short-term listing gains (GMP = ₹0)
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You seek safer or large-cap investments
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You are concerned about volatile sector dynamics
