Rs 600 Crore Raised At Premium Price: Why Investors Are Tracking This Chemical Stock

Neogen Chemicals Limited has raised nearly Rs 600 crore through a qualified institutional placement, allotting 26,60,753 equity shares to eligible institutional buyers at Rs 2,255 apiece. The issue, approved by the company’s Fund-Raising Committee on September 16, 2026, was priced above the regulatory floor price of Rs 2,189.73. At Rs 2,255 per share, the QIP was issued at a premium of about 3 per cent to the floor price and raised Rs 600 crore.

The placement opened on September 10 and closed on September 16, following the board approval on July 24 and shareholders’ approval through a special resolution on August 21. The newly issued shares will be listed on BSE and NSE and will rank pari passu with existing equity shares, including for Dividends and voting rights.

The fundraising is sizeable relative to Neogen’s operating base. The Rs 600 crore capital raise is equivalent to nearly 70 per cent of the company’s consolidated FY26 revenue of Rs 861.96 crore. It comes as the speciality chemicals maker is progressing with significant investment in lithium-ion battery materials through subsidiary Neogen Ionics, alongside rebuilding and ramping up operations at its Dahej facility. The allotment expands Neogen’s equity base from 2,73,81,674 shares to 3,00,42,427 shares. This represents an increase of about 9.7 per cent in the number of shares outstanding compared with the pre-QIP share capital. The post-issue paid-up equity share capital stands at Rs 30.04 crore, against Rs 27.38 crore earlier.

Institutional participation was led by domestic Mutual Funds and insurers. ICICI Prudential funds, Invesco India funds and Mirae Asset funds each received 3,54,768 shares, representing 13.33 per cent of the issue apiece. SBI Life Insurance Company was allotted the identical 3,54,768 shares. WhiteOak Capital funds received 2,12,861 shares, or 8 per cent of the placement, while Axis Mutual Fund schemes received 1,77,384 shares, representing 6.67 per cent. Abu Dhabi Investment Authority, through WAY, was allotted 1,41,907 shares, or 5.33 per cent.
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The QIP follows a period of rising capital requirements for Neogen’s battery-materials projects. Management had earlier indicated that the proposed Rs 600 crore QIP would initially support debt reduction and provide financial flexibility for future opportunities in battery materials and organolithium chemicals.

Neogen Ionics is developing electrolyte and lithium electrolyte salt capacities at Dahej and Pakhajan in Gujarat. Management has targeted electrolyte commissioning in the first half of FY27 and lithium electrolyte salt commissioning in the second half. The company expects battery-materials revenue of around Rs 300 crore in FY27, although conversion of customer approvals into commercial supplies and the pace of domestic cell manufacturing remain important variables.

The company’s core business has shown improving momentum. In the latest reported quarter, net sales rose 34.04 per cent year-on-year to Rs 250.29 crore, while profit after Tax increased 65.62 per cent to Rs 16.91 crore. Operating margin, measured by PBIDT margin excluding other income, improved to 19.27 per cent from 16.87 per cent a year earlier.

As of 10:22 am on September 17, 2026, Neogen Chemicals shares were trading at Rs 2,369.60, up 2.94 per cent from the previous close. The stock was about 0.7 per cent below its 52-week high of Rs 2,386.55 and has gained 54.84 per cent over the past year, compared with a 2.65 per cent decline in the BSE 500.

Disclaimer: The article is for informational purposes only and not investment advice.