Neogen Chemicals proposes to utilize the net proceeds to support its growth initiatives in the Battery Materials segment
Neogen Chemicals Limited, one of the leading manufacturers of Bromine-based and Lithium-based specialty chemicals, has successfully completed the preferential allotment of 14,42,358 equity shares of face value of Rs. 10 each at a price of Rs. 1,754.07 per share including a premium of Rs. 1,744.07 per share. Through this allotment, the company has secured ~Rs. 253 crore from esteemed high-quality institutional investors including:
1. SBI Mutual Fund
2. Quant Mutual Fund
3. Tata India Mutual Fund
4. India Acorn Fund Ltd.
5. Ashoka India Equity Investment Trust PLC
6. Invesco India Mutual Fund
7. Alchemy Ventures Fund
The preferential issue was approved by the Board of the Directors at the meeting held on 5th October, 2023, and by the shareholders subsequently, at the Extraordinary General Meeting held on 28th October, 2023.
Commenting on the development, Dr. Harin Kanani, Managing Director, at Neogen Chemicals Limited said: "I am happy to announce the successful completion of fundraise, which allows us to execute our planned growth initiatives. In addition to some of our existing investors who have reposed their faith, we have on-boarded several new institutional investors who will participate in this exciting growth journey. I extend my gratitude for their unwavering support & trust and commit to put in more effort to attain greater milestones. We have showcased our proficiency in manufacturing and R&D, and our current priority lies in implementing our defined growth strategy to consistently enhance value for all the stakeholders."
Neogen Chemicals proposes to utilize the net proceeds to support its growth initiatives in the Battery Materials segment, while maintaining the growth trajectory in the existing business segments of specialty Bromine-based derivatives, Advanced Intermediates and Custom Synthesis Manufacturing. The funds will also be tactically deployed to retire some of the existing debt as required, such that the Company has enough leverage to quickly expand based on the evolving market scenario.
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