Fundraising Details

Neogen Chemicals Limited successfully completed its first-ever Qualified Institutions Placement (QIP) of equity shares, raising approximately INR 600 crore. The issue was oversubscribed by more than 6.5 times, indicating strong investor demand.

Transaction Structure

  • Number of shares allotted: 26,60,753 equity shares of face value INR 10 each
  • Issue price: INR 2,255 per equity share (including a share premium of INR 2,245 per equity share)
  • Issue price was above the floor price of INR 2,189.73 per equity share
  • Paid-up equity share capital expanded from INR 27.38 crore (2,73,81,674 equity shares) to approximately INR 30.04 crore (3,00,42,427 equity shares)

Investor Participation

The QIP attracted strong participation from a diverse mix of renowned domestic and global institutional investors, including:

  • Leading mutual funds: ICICI Prudential Mutual Fund, Invesco Mutual Fund, Mirae Asset Mutual Fund, White Oak Capital Mutual Fund, Axis Mutual Fund
  • Insurance companies: SBI Life Insurance
  • Foreign portfolio investors: Abu Dhabi Investment Authority
  • Alternative Investment Funds (AIF) and Non-Banking Financial Companies (NBFC)

Use of Proceeds

The funds raised will be utilized for:

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

Strategic Impact and Management Commentary

According to Dr. Harin Kanani, Managing Director, the capital raise will:

  • Reduce outstanding indebtedness and debt servicing costs
  • Improve the debt-to-equity ratio
  • Provide financial flexibility to fund incremental business requirements and growth opportunities
  • Strengthen the balance sheet and enhance capital allocation efficiency
  • Position the company at the forefront of India's self-reliance in energy storage and advanced battery materials ecosystem

Dr. Kanani noted that this represents the largest equity raise in a single transaction since the company's listing seven years ago, demonstrating market confidence in their execution capabilities across both specialty chemicals and emerging battery materials ventures.

Advisors and Legal Counsel

The QIP was managed by:

  • Inga Ventures Private Limited
  • IIFL Capital Services Limited (formerly IIFL Securities Limited)
  • Kotak Mahindra Capital Company Limited as Lead Managers

Legal counsel:

  • Trilegal acted as legal counsel to Neogen Chemicals
  • JSA Advocates & Solicitors advised the Lead Managers

Company Background

Neogen Chemicals Limited is one of India's leading manufacturers of:

  • Specialty bromine chemicals
  • Lithium chemicals
  • Advanced battery materials

Business Operations

  • Incorporated in 1989
  • Product portfolio of over 258 products
  • Products used in pharmaceuticals, agrochemicals, semi-conductors, engineering polymers, electronic chemicals, construction chemicals, aroma chemicals, flavours and fragrances, dyes and specialty polymers, and refrigerant for Vapour Absorption Machine
  • Also undertakes custom synthesis and contract manufacturing
  • Four manufacturing facilities located in Mahape (Navi Mumbai), Dahej SEZ (Bharuch), Karakhadi (Vadodara), and Patancheru (Sangareddy, Telangana)
  • Buli Chemicals India Private Limited was merged with Neogen Chemicals in January 2025

Subsidiary Information

Neogen Chemicals Limited has a wholly owned subsidiary - Neogen Ionics Limited, dedicated to projects related to battery materials. Neogen Ionics Limited is the first manufacturer in India to commercially supply lithium-ion battery electrolytes at commercial scale to a giga-scale battery manufacturing facility.