Neochem Bio’s IPO Off to a Slow Start as Retail Participation Stays Weak

Tuesday, December 2, 2025: Neochem Bio Solutions IPO was opened for subscription on Tuesday. The firm intends to raise ₹44.97 crore by fresh issue of 45,88,800 equity shares. The shares are offered between ₹93-₹98 per share with a lot size of 1200 among the retail investors. The issue was subscribed 0.75 times towards the end of the day (around 04:30 PM).

Neochem Bio’s Lukewarm to Moderate Investor Response 

The IPO reaction has been rather lukewarm by mid-morning on Day 1. Only 52800 shares were subscribed by the afternoon. However, there was a bit of improvement towards the end of the day. At 04:30 PM, Neochem Bio IPO has been subscribed 0.75× overall, driven mainly by QIB (1.00×) and NII (1.10×), while the retail investor category remained weak at 0.47×. Total bids stood at 22.96 lakh shares against 30.52 lakh shares offered, with 326 total applications.

Neochem Bio’s Anchor Backing Sentiments

Prior to the IPO issue anchor investors had subscribed to 13,03, 200 shares at the higher price band of ₹98 per share raising ₹12.77 crore. The biggest anchor investor was Sanshi Fund which was linked to a renowned investment investor Mukul Agarwal- Sanshi Fund acquired 5,11,200 shares constituting approximately 39.23% of the anchor book. 

Neochem Bio’s Proceeds and Company Profile Utilization

The company further says the IPO funds will be utilized in long term working capital repayment or prepayment of some borrowings as well as general corporate purposes. 

Neochem Bio Solutions is a specialty performance chemical manufacturer that works in four main product segments including polymers surfactants silicone and esters/biobased sustainable solutions. Its products are used in a wide range of industries such as textiles home and personal care institutional cleaning water treatment paints, rubber, pulp and paper and dyes and pigments. 

The business has a 22,000 MTPA manufacturing plant based in Ahmedabad. It has over 50 distributors with over 225 domestic clients and 12 foreign export markets. Neochem had ₹84.17 crore and ₹7.75 crore of revenue and profit after tax respectively in FY25. In six months ended in September 2025 revenue amounted to ₹45.83 crore and PAT amounted to ₹5.48 crore. 

What To Watch About Allotment and Listing

The IPO subscription process will end on December 4, 2025. According to the lead manager and registrar allotment will probably be done on December 5, 2025 and listed on the NSE Emerge platform sometime around December 9, 2025. 

With this slow start investors and market viewers will be paying close attention to the trends of the subscriptions in the next two days. 

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