Neogen Chemicals raises INR 200 crore via NCDs

Neogen Chemicals Limited (Neogen), one of India's leading manufacturers of Brominebased, and Lithium-based specialty chemicals, today announced that it has successfully raised INR 200 crore through the private placement of fully paid, secured, rated, listed, redeemable, rupee denominated, and non-cumulative, non-convertible debentures (NCDs).

The NCDs, rated CRISIL A/ Outlook Negative, were issued at a competitive 10.50% coupon rate, taking advantage of the falling interest rate environment. It has a tenure of up to 30 months, with interest payable on a monthly basis, and will be listed on the BSE. The issue was fully subscribed by prominent institutional investors.

These funds will provide financial flexibility to execute the ongoing growth projects. Most importantly, it will supply the liquidity to expedite the rebuilding of the Organic Chemicals plant in Dahej SEZ until insurance money is fully received.

Commenting on the development, Dr. Harin Kanani, Managing Director at Neogen Chemicals said: "We are delighted with the overwhelming response to our NCD issue. The successful fundraise is a testament to the market's confidence in our business strategy and future growth prospects. These funds will be instrumental in supporting our CAPEX plans while also providing the crucial liquidity to rebuild our plant at Dahej SEZ. We remain committed to delivering value to our shareholders and building a stronger company with multiple growth avenues."

Shares of Neogen Chemicals Limited was last trading in BSE at Rs. 1426.20 as compared to the previous close of Rs. 1418.65. The total number of shares traded during the day was 2573 in over 457 trades.

The stock hit an intraday high of Rs. 1448.50 and intraday low of 1400.10. The net turnover during the day was Rs. 3646206.00.

Source : Equity Bulls

Keywords

NeogenChemicals INE136S01016 FundRaising NCDs