Neochem Bio Solutions IPO

About Neochem Bio Solutions IPO

The IPO of Neochem Bio Solutions comprises a fresh issue of up to 45,88,800 equity shares. There’s no offer for sale in this IPO, which is a 100% book-built issue. The price band is ₹93 to ₹98 per share and the lot size is 1200.

Neochem Bio Solutions IPO opens on December 2, 2025 and closes on December 4, 2025. The allotment of shares will take place on December 5, 2025. The credit of shares to the Demat account will take place on December 8, 2025. The initiation of refunds will take place on December 8, 2025. The listing of shares will take place on December 9, 2025.

Neochem Bio Solutions is a specialty performance chemical company with a legacy of over four decades, engaged in the business of manufacturing specialty performance chemicals with a diverse portfolio of over 350 customised formulations across four primary product segments viz., (i) Polymers, (ii) Surfactants, (iii) Silicones, and (iv) Esters & biobased sustainable solutions.

Objectives of Neochem Bio Solutions IPO

The company proposes to utilise the IPO proceeds for:

• Funding the long-term working capital requirements of the company
• Repayment/prepayment, in full or part, of all or certain outstanding borrowings availed by the company
• General corporate purposes

Industry Outlook

India’s bioeconomy, currently contributing around 4.25% to the national GDP, has emerged as a vital pillar of sustainable economic development. Anchored in sectors like biopharmaceuticals, bio-agriculture, bio-industrial products, and bioenergy, it leverages the country’s rich biodiversity, strong scientific base, and expanding biotech ecosystem.

India’s Bioeconomy grew by 10% in 2023, surpassing the ₹12 lakh crore mark by December and nearly doubling from ₹6.4 lakh crore in 2020. This rapid expansion has been fuelled by progress in biotechnology, agricultural innovation, biomanufacturing, and healthcare, reinforcing the sector's central role in driving sustainable development.

Moving forward, strategic investments, advanced R&D, and enabling policy frameworks will be pivotal in unlocking the full value of India’s evolving bioeconomy. The bio-economy market is expected to double by 2030 to reach ₹28.5 lakh crores.

Also, the specialty chemicals segment stands out as one of the fastest-growing areas in Indian manufacturing, driven by rising demand from various end-user sectors, supportive government policies, an expanding domestic customer base, and shifts in consumer lifestyles.

The Indian specialty chemicals market has demonstrated robust growth, expanding from ₹2.2 lakh crore in FY19 to an estimated ₹5 lakh crore in FY25, and is projected to reach ₹7.5 lakh crore by FY29, registering a CAGR of 10-12% over the next four years.

Neochem Bio Solutions Company Information

Neochem Bio Solutions is a specialty performance chemical company with a legacy of over four decades, engaged in the business of manufacturing specialty performance chemicals with a diverse portfolio of over 350 customised formulations across four primary product segments viz., (i) Polymers, (ii) Surfactants, (iii) Silicones, and (iv) Esters & biobased sustainable solutions.

Its products are essential and used in industries such as textile & garment washing, home & personal care (HPC), institutional and industrial cleaners, water treatment, paints and coatings, paper and pulp, construction, rubber and dyes and pigments.

Strengths of Neochem Bio Solutions

• Integrated and flexible manufacturing operations for sustainable formulations enabling customised supply
• Strong understanding of applied chemistries for diverse end-use industries
• Established long-standing relationships with customers across end-use industries
• Research and development (R&D) capabilities for development of innovative performance chemistries
• Established sales and distribution network
• Experienced promoters with strong management team having domain knowledge

Risks of Neochem Bio Solutions

• Decline in the textile industry could affect business operations
• Inability to acquire new customers could affect financial conditions
• Lack of long-term contractual agreements could affect results of operations
• Underutilisation of installed capacities could impact growth
• Significant increase of raw materials may impact result of operations
• Significant portion of revenue from operations from domestic sales which exposes to risks specific to Indian geographies
• Inability to comply with quality standards may lead to termination or loss of business
• No long-term supply arrangement or agreement with suppliers
• Slowdown or shutdown of Moraiya manufacturing facility, may have an adverse impact on business
• Failure to renew leases or find alternatives could have a material adverse effect on business

Anchor Investor Bidding Date

Anchor portion of the investor opens for bidding on December 1, 2025.

IPO Registrar and Book Running Lead Manager

• IPO Registrar: MUFG Intime India
• Book Running Lead Manager: Vivro Financial Services

Neochem Bio Solutions Business Model

Neochem Bio Solutions offer a comprehensive range of textile and garment washing auxiliaries such as pre-treatment, dyeing, finishing, printing and coating applications across all fabric and garment substrates compatible with various processing machines.

It manufactures and supplies a diverse range of specialty performance chemicals such as dispersant polymers, anti-foams, specialty surfactants, silicone emulsions, and rheological modifiers for the home and personal care industries.

Its water treatment range includes anti-scalant formulations based on high and low molecular weight polymers, along with dispersants, anti-foams, de-colorants and flocculants. For the paint and coating industry, it offers acrylic dispersants, wax emulsion-based additives, anti-foams, and acrylic emulsions.

Further, its institutional and industrial cleaning range includes room care, laundry care, kitchen hygiene, and personal hygiene solutions tailored for commercial and industrial use.

Neochem Bio Solutions Growth Trajectory

The revenue from operations of Neochem Bio Solutions grew from ₹48.1884 crores in FY 23 to ₹84.1727 crores in FY 25, while EBITDA margin increased from 8.77% in FY 23 to 15.58% in FY 25. PAT margin increased from 2.20% in FY 23 to 9% in FY 25. Integrated and flexible manufacturing options coupled with established long-standing relationships with customers across end-use industries has helped the company grow over the years.

Neochem Bio Solutions Market Position

Neochem Bio Solutions sells its products directly to customers as well as through more than 50 pan India authorised distributors and its reselling agent, in the domestic markets and directly to customers across the international market.

In the domestic market, the company has catered 227, 254 and 188 customers during Fiscals 2025, 2024 and 2023, respectively. In the international market, it has catered to more than 16, 17 and 14 customers during Fiscal 2025, 2024 and 2023, respectively, who are based in countries such as Bangladesh, Australia, Egypt, Vietnam, Singapore, Thailand, Indonesia, Uzbekistan, Canada, Turkey, Ukraine and South Korea.

How to Apply for the Neochem Bio Solutions IPO?

• Log in to your Kotak Neo Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.