SBI Mutual Fund, White Oak Group acquire ~5.67% stake in Neogen Chemicals
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SBI Mutual Fund, White Oak Group acquire ~5.67% stake in Neogen Chemicals

The proceeds from this transaction will be utilized family's long term financial plans and goals

  • By ICN Bureau | June 29, 2024

Neogen Chemicals Limited, one of India's leading manufacturers of Bromine-based, and Lithium-based specialty chemicals for the last 35 years. It has now entered into manufacturing of Lithium-Ion Battery materials through its wholly owned subsidiary Neogen Ionics Limited.

Haridas Kanani, Chairman and Managing Director of Neogen Chemicals Limited, a Chemical Engineer from IIT Bombay with more than 55 years of professional experience, has today divested ~5.67% of his equity from the company. Even after the stake sale, the promoters continue to retain majority ownership in Neogen Chemicals and remain firmly committed to the Company's objectives and continued success.

The stake was acquired by existing long-standing institutional investors, SBI Mutual Fund and White Oak Group, reaffirming their faith in the company's long-term prospects. The proceeds from this transaction will be utilized by the promoter who is now approaching 80 years for taking care of his and his family's long term financial plans and goals.

For FY24, on a consolidated basis, the company's revenue improved to Rs. 691 crore, despite a significant decline in the prices of raw materials, particularly bromine and lithium. EBITDA stood at Rs. 110 crore, while Profit After Tax came in at Rs. 36 crore. The Company has charted ambitious growth plansto foray into the high-potentialsunrise sector of Battery Materials for EV applications through domestic manufacturing of Electrolyte and Lithium Electrolyte Salts.

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