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Neochem Bio IPO
Neochem Bio Solutions Ltd
₹2,23,200 /1200 sharesMinimum Investment
Neochem Bio IPO Details
| Bidding dates | Minimum investment | Lot size | Price range |
|---|---|---|---|
| 2 Dec ‘25 - 4 Dec ‘25 | ₹2,23,200 | 1,200 | ₹93 - ₹98 |
| Issue size | IPO doc | Tentative allotment date | Tentative listing date |
|---|---|---|---|
| 44.97 Cr | RHP PDF | 05 Dec ‘25 | 09 Dec ‘25 |
| Face value |
|---|
| 10 |
About Neochem Bio
Founded in
1978
MD/CEO
Mr. Swapnil Rameshbhai Makati
Parent organisation
Neochem Bio Solutions Ltd
Strengths & Risks of Neochem Bio
Strengths
Risks
The company operates an integrated manufacturing facility in Ahmedabad, enabling in-house production of key intermediates, such as polymer dispersants, bio-based esters, silicones, and surfactant-based formulations. This structure allows them to use a significant portion of these intermediates in downstream formulations, providing tighter control over input quality and production processes.
Neochem Bio Solutions claims to have a 22,000 MTPA manufacturing facility designed to handle both liquid and powder chemistries across varied batch sizes. The plant’s partially automated and modular setup allows the company to shift between small trial batches and larger commercial volumes without major reconfiguration.
With over 40 years of operations, the company states that it has developed expertise in performance chemicals used in textiles, home and personal care, institutional cleaning, water treatment, coatings, paper, rubber, and dyes. It reports offering more than 350 customised formulations across polymers, surfactants, silicones, esters, and bio-based solutions tailored to specific industrial applications.
The company claims to maintain recurring business from a wide base of clients and distributors. It has served 188-254 domestic customers annually over the past three financial years and 10-17 international customers across regions, including Bangladesh, Australia, Egypt, Vietnam, Singapore, Thailand, Indonesia, Uzbekistan, Canada, Turkey, Ukraine, and South Korea.
Neochem Bio Solutions claims to operate an R&D and product application development laboratory at its Moraiya facility, equipped with testing and formulation infrastructure. The team reportedly works on application-specific formulations, process optimisations, and development of bio-based alternatives such as plant-derived softeners and phosphate-free agents.
The company is ISO 9001:2015 certified for quality management systems, ISO 14001 certified for environmental management systems, and ISO 45001 certified for occupational health and safety. It also claims to hold ZDHC Level 3 and GOTS 7.0 certifications for meeting specific environmental and textile-chemical standards.
Neochem Bio Solutions claims to function as a zero-liquid-discharge company, stating that process-related effluent is treated internally and reused for factory needs. This includes recycling cleaning and washing effluent generated during formulation activities.
The textile industry contributed Rs 35.30 crore (77.03%), Rs 71.75 crore (85.24%), Rs 54.58 crore (90.75%), and Rs 43.84 crore (95.92%) to the company’s revenue in the period ended September 30, 2025, FY25, FY24, and FY23, respectively. Any adverse movement in textile processing demand may materially affect revenue, margin stability, and overall business performance.
The company’s top 10 customers contributed Rs 25.25 crore (55.09%), Rs 38.04 crore (45.19%), Rs 21.75 crore (36.16%), and Rs 17.84 crore (39.03%) in the period ended September 30, 2025, FY25, FY24, and FY23, respectively. Any failure to retain these key customers, expand the customer base, or loss of business from these clients can adversely affect the company’s business and financial standing.
All production activities are carried out at a single manufacturing facility in Moraiya, Ahmedabad. Any adverse political, social, or economic developments in this region could hurt the company’s business and finances.
The company had total trade receivables of Rs 37.25 crore (149 days), Rs 25.28 crore (116 days), Rs 16.74 crore (100 days), and Rs 14.16 crore (107 days) in the period ended September 30, 2025, FY25, FY24, and FY23, respectively. Failure to collect these receivables on time or at all can negatively impact the business and its financial condition.
Revenue from Gujarat contributed 55.08%, 46.83%, 34.88%, and 32.20% of total revenue from operations in the period ended September 30, 2025, FY25, FY24, and FY23, respectively. Any adverse economic or policy-related developments in this region may disproportionately impact the company’s performance.
Purchases from the top 10 suppliers were Rs 19.19 crore (56.53%), Rs 29.09 crore (48.21%), Rs 23.70 crore (57.01%), and Rs 16.50 crore (50.63%) in the period ended September 30, 2025, FY25, FY24, and FY23, respectively. Any fluctuation in supply, pricing, or quality from these suppliers could affect production stability and margins.
The company reported negative cash flows from operating activities amounting to Rs 7.69 crore for the six months ended September 30, 2025, and Rs 0.74 crore in FY23. It also recorded negative cash flows from investing activities of Rs 1.69 crore in FY25, Rs 7.86 crore in FY24, and Rs 3.35 crore in FY23. Additionally, financing activities reflected outflows of Rs 1.20 crore in FY25. If cash outflows continue to exceed inflows, the company may face liquidity challenges in the future.
Capacity utilisation has remained below installed capacity at 22.74%, 41.82%, 34.97%, and 24.61% for the period ended September 30, 2025, FY25, FY24, and FY23, respectively. Continued decline in utilisation can weaken operating leverage and reduce profitability.
As of September 30, 2025, the company had total financial indebtedness of Rs 38.54 crore. Any failure to service or repay these loans can harm the company’s operations and financial position.
Neochem Bio Financials
*All values are in Rs. Cr
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Application Details of Neochem Bio IPO
| Apply as | Price band | Apply Range | Lot size |
|---|---|---|---|
| Individual investor | ₹93 - 98 | ₹2 - 5 Lakh | 1200 |
For Neochem Bio IPO, eligible investors can apply as Individual investor.