Neogen Chemicals has opened its qualified institutional placement (QIP) with a floor price of ₹2,189.73 per equity share. The Fund-Raising Committee approved the preliminary placement document on September 10, 2026.

The company’s Board of Directors initially approved the issue in its meeting held on July 24, 2026. Shareholders subsequently granted approval through a special resolution passed on August 21, 2026.

Pricing and Regulatory Framework

The floor price was calculated based on the pricing formula prescribed under Regulation 176(1) of the SEBI ICDR Regulations. The relevant date for the QIP is fixed as September 10, 2026.

Under the regulations, the company may offer a discount of up to 5% on the floor price at its discretion. The final issue price will be determined in consultation with the lead managers appointed for the issue.

Issue Mechanics

The QIP is being conducted in terms of Chapter VI of the SEBI ICDR Regulations and Section 42 of the Companies Act, 2013. Eligible qualified institutional buyers are invited to submit bids via the application form.

The preliminary placement document dated September 10, 2026, has been filed with both the BSE Limited and the National Stock Exchange of India Limited. The document is also available on the company’s website under the Issue of Securities tab.

Neogen Chemicals Limited received a show cause cum demand notice on September 5, 2026, from the CGST Commissionerate, Belapur. The notice levies a consolidated tax demand of ₹6.97 crore for the financial year 2022-23.

The adjudicating authority issued the notice under section 73 of the CGST Act, 2017, citing discrepancies in input tax credit (ITC) claims and return filings. The company disclosed the development to stock exchanges on September 6, 2026, under Regulation 30 of the SEBI Listing Regulations.

Notice Details

The demand comprises principal tax, interest, and penalty. The source notes that the principal tax amount of ₹1.39 crore was paid via DRC-03 on December 28, 2022, and has been appropriated towards the liability. The current demand primarily covers interest under section 50(1) and penalty under section 73.

Alleged Violations

The notice identifies three specific grounds for the demand:

• Mismatch between GSTR-1 and GSTR-3B returns, where tax was paid via DRC-03 without applicable interest.
• Excess ITC claimed on import of goods due to mismatches between GSTR-3B and GSTR-2B, with no valid Bills of Entry (BOEs) for FY22-23.
• Excess ITC claimed based on unsubstantiated SEZ or import claims, showing a mismatch between GSTR-3B and GSTR-2A.

What the Numbers Show

The composition of the demand highlights a significant penalty component. With the principal tax of approximately ₹1.39 crore already paid, the remaining balance of roughly ₹5.58 crore represents interest and penalties. This structure indicates that the core dispute lies in the procedural compliance of ITC claims rather than the primary tax liability itself, which had been settled earlier.

Company Response

Neogen Chemicals stated it is evaluating the notice and will file a detailed reply within prescribed timelines. The company affirmed that there is no material impact on its financial or operational activities, excluding the specific amount mentioned in the notice. It intends to pursue all available legal remedies.