Question 1: What is the overview of the company?

Neptune Petrochemicals is engaged in the trading and distribution of a wide range of petrochemical products. The company plays a critical intermediary role in the supply chain by connecting large petrochemical manufacturers with industrial buyers across diverse sectors.

Business Model:
Neptune operates primarily as a B2B (business-to-business) trader and distributor of petrochemical products. The company does not manufacture the products it sells; instead, it sources them from domestic and international producers and supplies them to end-user industries.

Key aspects of the business model include:

1. Product Portfolio Diversification:
   The company deals in a variety of petrochemical products such as base oils, solvents, lubricants, and specialty chemicals. This broad product range helps it cater to multiple industries, including automotive, manufacturing, construction, and plastics.
2. Strong Vendor Relationships:
   Neptune Petrochemicals builds long-term relationships with petrochemical producers to ensure consistent and quality supply. These ties also enable better pricing terms and supply reliability.
3. Customer-Centric Distribution Network:
   The company maintains a well-established distribution network across multiple regions, allowing it to serve clients efficiently and in a timely manner. By operating warehouses and logistics systems, it ensures smooth handling and delivery of products.
4. Demand-Driven Inventory Management:
   Neptune follows a lean inventory model to minimize holding costs while ensuring availability. It adjusts procurement based on market demand and order volumes, thereby optimizing working capital.
5. Value-Added Services:
   Beyond just trading, the company may offer services such as customized packaging, technical support, and just-in-time delivery, enhancing customer satisfaction and loyalty.
6. Focus on Industrial Clients:
   The business primarily targets mid-to-large industrial customers who require petrochemicals as raw materials or additives in their production processes.
7. Risk Mitigation via Diversification:
   By not being overly reliant on a single product or customer, Neptune mitigates the risks associated with market volatility in specific petrochemical segments.

Product Portfolio:

Product wise Revenue Bifuration:

Trading V/s Manufacturing Revenue Bifurcation:

Geography wise Revenue Bifurcation:

State Wise Revenue Bifurcation:

Capacity and Capacity Utilization:

Question 2: Who are the promoters of the Company?

Promoters and Directors

• Pareshkumar Subodhchandra Shah
  Serving as the Managing Director, Pareshkumar Shah is a central figure in the company’s leadership.
• Riddhi Shah
  Identified as an individual promoter, Riddhi Shah plays a significant role in the company’s ownership and strategic direction.
• Sanjaykumar Subodhchandra Shah
  Holding the position of Director, Sanjaykumar Shah contributes to the company’s governance and decision-making processes

Question 3: How company performed in the past?

Question 4: How much money is the company raising and why?

In the IPO, the company is offering 60 Lakh shares, priced at INR 115-122 per share, aggregating to total of INR 73.20 Cr, with a lot size of 1000 shares. For the purpose of:

Funding capital expenditure requirement towards installation of additional plant and machinery and related infrastructure-INR 5.15 Cr

Funding the capital expenditure for purchase of office space- INR 14.74 Cr

Funding of working capital requirements – INR 42 Cr

General Corporate Purposes- INR 11.31 Cr

Question 5: Valuation of the company and comparison with other companies

Question 6: Summary of outstanding Litigations

✅ Strengths of Neptune Petrochemicals

1. Diverse Product Portfolio:
   The company deals in a wide range of petrochemical products such as base oils, lubricants, solvents, and specialty chemicals—serving various end-use industries. This diversification reduces dependency on a single product or sector.
2. Established Industry Relationships:
   Neptune has built long-standing relationships with both domestic and international suppliers, ensuring stable sourcing and a reliable supply chain.
3. Experienced Promoters:
   The promoter group, particularly Pareshkumar Subodhchandra Shah, brings industry experience and leadership stability to the company.
4. Asset-Light Business Model:
   Being a trading and distribution company (rather than a manufacturer), Neptune benefits from lower capital requirements and operational flexibility.
5. Pan-India Distribution Reach:
   The company’s logistics and supply chain infrastructure allow it to efficiently serve clients across different geographies in India.
6. Sector Growth Potential:
   With growing demand for industrial lubricants, chemicals, and oils in automotive, infrastructure, and manufacturing, the company operates in a sector with long-term growth opportunities.

⚠️ Weaknesses of Neptune Petrochemicals

1. Low Entry Barriers in Trading:
   The trading and distribution business is highly competitive, with relatively low barriers to entry. This could put pressure on margins and market share.
2. Limited Value Addition:
   As a trader, the company does not manufacture or significantly process the products it sells, which limits its pricing power and brand value.
3. Working Capital Intensive:
   The business relies heavily on maintaining stock and credit cycles, making it vulnerable to liquidity stress if demand slows or clients delay payments.
4. Dependence on Petrochemical Prices:
   Volatility in global crude oil and petrochemical prices can impact procurement costs and profitability, as the company may not always pass on price fluctuations to customers.
5. Customer Concentration Risk:
   If a significant portion of revenue comes from a few large clients, loss of any major customer could impact performance.
6. Regulatory and Environmental Exposure:
   Operating in the petrochemical space brings exposure to regulatory changes, including environmental regulations and hazardous goods handling compliance.

🏢 Registered Office Address

Neptune Petrochemicals Limited
Block-B, Office No. 606, Mondeal Heights,
Near Panchratna Party Plot, S.G. Highway,
Ahmedabad – 380015, Gujarat, India.
📞 +91-79-49000599 / 600
📧 info@neptunepetrochemicals.com
🌐 www.neptunepetrochemicals.com

🗂️ Registrar and Transfer Agent (RTA)

Link Intime India Private Limited
📞 +91-22-4918 6270
📧 neptunepetrochemicals.smeipo@linkintime.co.in

📌 FAQs – Neptune Petrochemicals Limited

1. What does Neptune Petrochemicals Limited do?
Neptune Petrochemicals is engaged in the trading and distribution of petrochemical products such as base oils, lubricants, solvents, and specialty chemicals. The company serves various industrial sectors through its B2B model.

2. Is Neptune Petrochemicals involved in manufacturing?
No, the company primarily operates as a trader and distributor. It sources products from domestic and international suppliers and sells them to industrial customers.

3. Who are the promoters of Neptune Petrochemicals?
The key promoters include Pareshkumar Subodhchandra Shah, Riddhi Shah, and Sanjaykumar Subodhchandra Shah. They bring experience and leadership to the company.

4. Where is Neptune Petrochemicals headquartered?
The company is based in Ahmedabad, Gujarat.
📍 Office Address: Block-B, Office No. 606, Mondeal Heights, Near Panchratna Party Plot, S.G. Highway, Ahmedabad – 380015, Gujarat, India.

5. What industries does the company serve?
Neptune caters to industries such as automotive, construction, plastics, manufacturing, and infrastructure by supplying petrochemical inputs essential for their operations.

6. What are the core strengths of Neptune Petrochemicals?
Key strengths include a diversified product portfolio, established supplier relationships, an asset-light business model, and strong industry experience among the promoters.

7. What are the potential risks or weaknesses of the company?
Risks include high competition in trading, limited value addition, working capital intensity, and exposure to fluctuations in global petrochemical prices.

8. Who is the Registrar and Transfer Agent (RTA) for Neptune Petrochemicals?
The RTA is Link Intime India Private Limited.
📧 Email: neptunepetrochemicals.smeipo@linkintime.co.in

9. How can I contact the company for more information?
📧 Email: info@neptunepetrochemicals.com
🌐 Website: www.neptunepetrochemicals.com