Neogen Chemicals Limited, a leading specialty chemicals manufacturer, has successfully raised Rs 200.00 crore through the private placement of Non-Convertible Debentures (NCDs). The company's Fund Raising Committee approved the allotment of 20,000 NCDs, each with a face value of Rs 1.00 lakh, in a meeting held on August 12, 2025.

Key Details of the NCD Issue

Security and Listing

The NCDs are secured by subservient charges on Neogen Chemicals' present and future assets, including immovable properties in Vadodara and Bharuch, Gujarat. These debentures will be listed on the Wholesale Debt Market segment of BSE Limited, enhancing their liquidity and tradability.

Repayment Structure

The repayment structure of the NCDs is designed to provide regular returns to investors:

• Interest will be paid monthly on the last day of every month
• The final interest payment will be combined with the principal redemption at maturity
• Principal repayment is scheduled for the maturity date

Investor Protection

In the event of a default in interest or principal payment, Neogen Chemicals will be liable to pay an additional interest of 2.00% per annum over the coupon rate for the defaulting period, providing a safeguard for investors.

Company's Perspective

The successful placement of these NCDs demonstrates Neogen Chemicals' strong financial position and investor confidence in the company's growth prospects. This fundraising initiative is expected to support the company's expansion plans and working capital requirements.

Market Impact

The issuance of these NCDs is likely to strengthen Neogen Chemicals' financial position, potentially impacting its growth trajectory and market performance. Investors and market analysts will be closely monitoring how the company utilizes these funds to drive future growth and enhance shareholder value.

As Neogen Chemicals continues to expand its operations in the specialty chemicals sector, this successful fundraising effort marks a significant milestone in its financial strategy, positioning the company for sustained growth in the coming years.

Neogen Chemicals Limited, a leading specialty chemicals manufacturer, demonstrated resilience in its Q1 FY26 performance, reporting a 4% year-on-year revenue growth to INR 186.70 crore despite the unavailability of its Dahej plant due to a fire incident. The company maintained a steady EBITDA of INR 31.50 crore, with margins reaching 18.8% on a standalone basis.

Key Financial Highlights

• Consolidated revenue stood at INR 186.70 crore, up 4% year-on-year
• EBITDA remained stable at INR 31.50 crore, with margins of 18.8% on a standalone basis
• Profit after tax came in at INR 10.30 crore
• Neogen Ionics contributed INR 5.40 crore to the revenue

Recovery from Dahej Fire Incident

The company is making swift progress in recovering from the Dahej plant fire incident:

• Received initial insurance claims of INR 50.55 crore in June 2025 and an additional INR 30.00 crore in July 2025
• Net claim receivable stands at INR 268.27 crore on a consolidated basis
• Replacement plant construction is underway at an adjacent location, with civil foundation work completed and long lead time equipment orders placed
• The new plant is on track to be operational by next year

Strategic Developments

Leadership Transition

• Chairman and Managing Director Mr. Haridas Kanani will retire on September 30, 2025, and will become Chairman Emeritus from October 1
• Mr. Anurag Surana has been designated as Chairman and Non-Executive Director effective October 1, 2025

Battery Chemicals Expansion

• Pakhajan facility's Greenfield electrolyte plant using MUIS technology is progressing well
• INR 506.00 crore deployed out of total INR 1,500.00 crore CAPEX for the Pakhajan facility
• Ongoing factory acceptance test of the module manufacturing plant at Mitsubishi Engineering Corporation

Joint Venture Progress

• Incorporated Neogen Morita New Materials Limited (NML), a wholly-owned subsidiary of Neogen Ionics Limited
• JV aims to leverage Morita Chemical Industries' 30+ years of experience in producing lithium salts

Financial Flexibility

• Board approved raising INR 200.00 crore through private placement of NCDs to provide additional liquidity during ongoing CAPEX projects

Outlook

Despite adjusting near-term revenue guidance due to operational challenges, Neogen Chemicals remains confident in its long-term trajectory. The company is well-positioned to capitalize on the growing demand for battery chemicals, both in India and globally, as the industry shifts towards non-Chinese supply chains.

Dr. Harin Kanani, Managing Director, commented, "Our diversified business model proved its inherent strength as we navigated the challenge of our Dahej plant unavailability. We are seeing strong interest from international customers for our battery chemicals, driven by the global push for non-Chinese supply chains in critical materials."

As Neogen Chemicals continues to execute its strategic initiatives and expand its capacity, it remains focused on delivering value to shareholders through innovation and operational excellence in the specialty chemicals and advanced battery materials sectors.