Neogen Chemicals secures Rs 253cr from institutional investors, aiming to boost battery materials segment

Neogen Chemicals Limited, a front-runner in manufacturing Bromine-based and Lithium-based specialty chemicals, announced the successful completion of its preferential allotment. The company issued 14,42,358 equity shares at Rs. 1,754.07 per share, aggregating to a significant sum of approximately Rs. 253 crore. This strategic move involved high-quality institutional investors such as SBI Mutual Fund, Quant Mutual Fund, Tata India Mutual Fund, and others, marking a pivotal moment in the company’s financial journey.

Investment to Propel Growth in Battery Materials and Debt Reduction

Approved by the Board of Directors and shareholders in late 2023, the funds from this preferential allotment are earmarked for multiple key areas. Neogen Chemicals intends to use the net proceeds to foster growth in the Battery Materials segment. Additionally, the investment will bolster the company’s existing specialty chemical segments, including Bromine-based derivatives and Custom Synthesis Manufacturing. A portion of the raised capital is also planned for the strategic retirement of existing debt, allowing Neogen Chemicals to leverage opportunities in the evolving market.

Managing Director’s Vision on Company Growth and Stakeholder Value

Dr. Harin Kanani, Managing Director of Neogen Chemicals, expressed his satisfaction with the successful fundraising. “I am happy to announce the successful completion of our fundraise, which allows us to execute our planned growth initiatives,” he stated. Dr. Kanani highlighted the company’s proven expertise in manufacturing and R&D, focusing on implementing a growth strategy to consistently enhance stakeholder value. His acknowledgment of both new and existing investors who supported this financial move underscores the company’s commitment to achieving new milestones and solidifying its presence in the specialty chemicals sector.