Neogen Chemicals Limited has disclosed receiving a customs penalty order from regulatory authorities, imposing significant financial implications totaling ₹1.23 crore. The specialty chemicals manufacturer received the order on February 10, 2026, relating to compliance issues under the advance authorization scheme.

Penalty Details and Financial Impact

The Office of the Commissioner of Customs, Raigad, Maharashtra issued Order no. 382/2025-26/Commr./NS-II/CAC/JNCH dated February 9, 2026, imposing multiple financial penalties on the company. The order addresses non-fulfillment of export obligations through physical exports and pre-import conditions under Custom Notification no 18/2015 dated April 1, 2015.

Nature of Violations

The customs order specifically relates to violations during fiscal years 2017-18 and 2018-19. The company allegedly failed to fulfill export obligations through physical exports and did not meet pre-import conditions specified under the advance authorization terms. These obligations are part of the government's export promotion scheme that allows duty-free import of inputs for export production.

Company Response and Next Steps

Neogen Chemicals stated it is currently analyzing the case and will take appropriate actions in due course as deemed fit and in the company's interest. The management indicated plans to file an appeal before the relevant appellate or judicial authority. According to the company's disclosure, there is no material impact on financial, operational, or other activities except for the amounts mentioned in the order.

Regulatory Compliance

The disclosure was made under Regulation 30 and 51(2) read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has also uploaded this information on its website at neogenchem.com/announcements/ as part of its transparency obligations to stakeholders.

Authority Details

The penalty order was issued by the Office of the Commissioner of Customs (NS-II), Jawaharlal Nehru Custom House, located in Raigad, Maharashtra. This customs house handles significant import-export activities in the Mumbai region and enforces compliance with various customs regulations and export promotion schemes.

Neogen Chemicals Limited has announced significant developments in its Employee Stock Option Plan, with the Nomination and Remuneration Committee approving both new option grants and vesting of previously allocated options under the NCL ESOP Scheme 2024.

Tranche II Option Grant Details

The company's Nomination and Remuneration Committee, in its meeting held on February 11, 2026, approved the grant of 50,200 stock options in Tranche II to 55 eligible employees of the company and its subsidiaries in India. Each option is convertible into one equity share of face value Rs. 10 each.

The exercise price of Rs. 1,183.14 per option represents a 10% discount to the market price, calculated based on the closing price on the National Stock Exchange on the previous trading day.

Vesting Schedule for Tranche II

The Tranche II options will vest over a three-year period following a structured timeline:

After vesting, options can be exercised within a maximum period of 2 years from the respective vesting date.

Tranche I Vesting Approval

Simultaneously, the committee approved the vesting of 4,650 employee stock options from Tranche I, which were originally granted to employees on April 1, 2025. The Tranche I grant involved 36,400 options distributed among 41 eligible employees at an exercise price of Rs. 1,389 per option.

ESOP Scheme Framework

The NCL ESOP Scheme 2024 allows for a maximum of 2,50,000 options, representing 0.95% of the company's total paid-up share capital. The scheme is implemented through a trust route, where the trust may acquire shares through secondary market acquisition or fresh allotment from the company.

Key features of the scheme include:

• Vesting period: Minimum 1 year to maximum 5 years from grant date
• Exercise period: Maximum 2 years from vesting date
• Exercise price linked to market price with committee-approved discounts
• Shares rank pari-passu with existing equity shares
• No lock-in period for allotted shares

The scheme is administered by the Nomination and Remuneration Committee, which delegates administrative powers to the trust for proper scheme management. All equity shares allotted pursuant to option exercise will rank equally with existing equity shares in all respects.