Neogen Chemicals' Board approves issuance of equity shares on preferential basis aggregating to approx. Rs. 225 crore

Neogen Chemicals Limited (Neogen), India's one of the leading manufacturers of Bromine-based and Lithium-based specialty chemicals, has announced that its Board of Directors, at its meeting held today, approved the issuance of up to 16,04,710 equity shares on preferential basis at an issue price of Rs. 1,402.12 per equity share aggregating to approx. Rs. 225 crore.

The proposed issuance will bring on board some of the high-quality, marquee institutional investors, like:

- SBI Mutual Fund
- Axis Mutual Fund
Plutus Wealth Management LLP
- White Oak Capital

Neogen has demonstrated its expertise across multiple chemistries including complex chemicals in the existing line of businesses, namely Organic Chemicals and Inorganic Chemicals. In addition to this, Neogen foresees significant opportunities emerging in advance intermediates, custom synthesis and new application for its expertise in lithium chemistry for manufacturing lithium-ion battery materials, required for manufacturing Advance Chemistry Cells for Lithium Ion Batteries having applications for Energy Storage for Renewables as well as for rapidly expanding Electric Vehicle (EV). The objective of this fund raise is to support the company's growth and to capture the upcoming high potential opportunities in these segments.

The equity infusion will further strengthen Neogen's balance sheet position while making it future ready, to tap the growing needs of key end user industries.

Axis Capital, INGA Ventures and Axelus FinServ were advisors for this transaction.

Shares of Neogen Chemicals Limited was last trading in BSE at Rs. 1720.25 as compared to the previous close of Rs. 1749.70. The total number of shares traded during the day was 34459 in over 4733 trades.

The stock hit an intraday high of Rs. 1843.00 and intraday low of 1710.10. The net turnover during the day was Rs. 61066955.00.

Source : Equity Bulls

Keywords

NeogenChemicals INE136S01016 SpecialtyChemicals FundRaising Brominebased Lithiumbased PreferentialIssue FundRaising InstitutionalInvestors