Neogen Chemicals Limited's Board of Directors has approved a significant preferential issue of equity shares worth ₹161.00 crores following their meeting on March 7, 2026. The board meeting, which commenced at 1:15 p.m. and concluded at 1:45 p.m., resulted in the approval of issuing 10.00 lakh equity shares to raise funds for the company's growth initiatives.

Preferential Issue Details

The board has approved the issuance of 10.00 lakh equity shares with a face value of ₹10.00 each at a price of ₹1,610.00 per share, including a premium of ₹1,600.00 per share. The total fund raising amounts to ₹161.00 crores through this preferential issue.

The issue price of ₹1,610.00 per share is 17.02% above the floor price of ₹1,375.82, calculated in accordance with Regulation 164 of the SEBI ICDR Regulations. The relevant date for determining the floor price was February 27, 2026, being 30 days prior to the scheduled EGM.

Allottee and Shareholding Impact

Cadamba Solutions Private Limited, belonging to the promoter group category, will be the sole allottee for this preferential issue. Currently holding zero shares in the company, Cadamba Solutions will acquire a 3.65% stake post-allotment.

EGM and Record Date Announcement

The company has scheduled an Extraordinary General Meeting (EGM) for Sunday, March 29, 2026, at 11:30 a.m. through video conferencing and other audio-visual means. The EGM will seek shareholder approval for the preferential issue and related matters.

The record date for determining eligibility of members for remote e-voting and attending the EGM has been set as Friday, March 20, 2026. The Register of Members and Share Transfer Register will remain closed from Saturday, March 21, 2026, to Sunday, March 29, 2026 (both days inclusive).

Lock-in Requirements and Regulatory Compliance

The equity shares to be allotted to Cadamba Solutions Private Limited will be subject to lock-in requirements as per SEBI ICDR Regulations. Shares belonging to the promoter group category will be locked-in for 18 months from the date of trading approval, with specific provisions for shares exceeding 20% of total capital being locked-in for six months.

The preferential issue is subject to approval from company members and statutory and regulatory approvals, including SEBI approval. The company has also sought exemption from strict application of certain SEBI ICDR regulations due to inter se transfers by promoter group members on December 31, 2025.

The company has fulfilled its disclosure obligations by notifying BSE Limited and National Stock Exchange of India Limited about the board meeting outcome. The information is also available on the company's website under the announcements section in the issue of securities tab.

Neogen chemicals has received Rs 60 crore as the third on-account insurance payment for the fire incident that occurred at its Dahej facility in March 2025. The payment was released based on recommendations from surveyors in their interim report, bringing the company's total insurance claims received to Rs 140 crore.

Insurance Claim Settlement Details

The insurance payment relates to the fire incident that took place at the Multi-Purpose Plant (MPP3) facility, warehouse, and tank farms located at Dahej SEZ on March 5, 2025, at around 12:30 a.m. IST. The company disclosed that further settlement will be determined in various stages following the completion of assessment for loss of property, plant and equipment including other assets at the Dahej SEZ Plant.

Financial Impact Assessment

The company has recognized a total loss of Rs 348.16 crore on a standalone basis, which increases to Rs 362.90 crore on a consolidated basis. This loss accounts for damage to property, plant and equipment, inventory, and estimated cost of incidental charges. Neogen Chemicals has recognized an insurance claim receivable of Rs 334.60 crore on a standalone basis after adjusting applicable deductibility.

The net impact after considering insurance claims stands at Rs 13.56 crore on a standalone basis and Rs 14.08 crore on a consolidated basis. Additionally, the company has received Rs 3.48 crore from the sale of salvaged scrap materials.

Production Status and Recovery Plans

Production and operations at the affected Multi-Purpose Plant (MPP3) facility, warehouse, and tank farms remain temporarily suspended. However, the company has initiated construction of a replacement plant, with commissioning scheduled for Q1 FY27.

To minimize business disruption, Neogen Chemicals has shifted production of critical select specialty products to other sites based on customer approvals. The company is also implementing planned expansion at its Patancheru Plant to help minimize the impact on earnings going forward.

Regulatory Compliance

The disclosure was made under Regulation 30 and Regulation 51 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. This update follows previous disclosures made on March 5, 2025, March 7, 2025, April 23, 2025, June 27, 2025, and July 16, 2025 regarding the fire incident. The company continues to assess the full extent of losses including loss of profit due to business interruption and reinstatement value of assets.