Neogen Chemicals Ltd has raised approximately Rs. 600 crore through its first-ever Qualified Institutions Placement (QIP), with the issue attracting bids of more than 6.5 times the shares on offer from a broad base of domestic and global institutional investors.

 

The specialty chemicals maker said the fundraise drew participation from marquee investors, including mutual funds, alternative investment funds, insurers, NBFCs and foreign portfolio investors. Among the investors were ICICI Prudential Mutual Fund, Invesco Mutual Fund, Mirae Asset Mutual Fund, SBI Life Insurance, White Oak Capital Mutual Fund, Axis Mutual Fund and Abu Dhabi Investment Authority.

 

The company allotted 26,60,753 equity shares with a face value of Rs. 10 each at an issue price of Rs. 2,255 per share, including a premium of Rs. 2,245. The issue price was above the floor price of Rs. 2,189.73 per share.

 

Following the allotment, Neogen Chemicals’ paid-up equity share capital increased from Rs. 27.38 crore, comprising 2,73,81,674 shares, to approximately Rs. 30.04 crore, comprising 3,00,42,427 shares.

 

The company said the proceeds will be used to repay or pre-pay certain borrowings, meet long-term working capital requirements and for general corporate purposes. The capital raise is also aimed at reducing outstanding debt and debt-servicing costs while improving the company’s debt-to-equity ratio.

 

Neogen said a stronger balance sheet will provide greater financial flexibility to fund incremental business requirements and growth opportunities.

 

Commenting on the QIP, Harin Kanani, Managing Director of Neogen Chemicals, said: "We are deeply honoured and grateful for the strong trust and confidence bestowed upon us by premier domestic and global institutional investors. This successful capital raise has enabled us to raise more equity in a single transaction than across all seven years since our listing. It is a testament to the market's faith in our strategy. Investors have reaffirmed their confidence in our execution capabilities across both our core specialty chemicals and emerging battery materials ventures.

 

"With major capital investments in our advanced battery materials now maturing, we are transitioning seamlessly from capital deployment to operational execution. Strengthening our balance sheet sharpens our capital allocation efficiency, enhances financial flexibility, and positions us directly at the forefront of India’s self-reliance in energy storage and advanced battery materials ecosystem. We remain firmly committed to ramping up operations and delivering sustained long-term value for all stakeholders."