Neogen Chemicals Limited has submitted its Monitoring Agency Report for the quarter ended September 30, 2026, prepared by CRISIL Ratings. The company confirms that there has been no deviation or variation in the utilization of proceeds raised through its Qualified Institutional Placement (QIP) issue. This report has been reviewed by the company’s Audit Committee and is being disseminated for investor information.
Monitoring Agency Report Filed
Neogen Chemicals Limited has officially filed its Monitoring Agency Report, as mandated by SEBI regulations, for the quarter ending September 30, 2026. The report, prepared by CRISIL Ratings Limited, which acts as the appointed monitoring agency, details the utilization of funds raised through the Qualified Institutional Placement (QIP) issue.
Confirmation of Fund Utilization
A key takeaway from the report is the confirmation from Neogen Chemicals that there has been no deviation or variation observed in the utilization of the QIP proceeds. This assurance aligns with the disclosures made in the placement document and provides investors with confidence regarding the financial management of the raised capital.
Audit Committee Review
The Monitoring Agency Report has undergone a review by the Audit Committee of Neogen Chemicals Limited during its meeting held on October 31, 2026. This internal oversight further validates the findings and confirmations presented in the report. The company is committed to transparency and has uploaded this intimation on its official website, as well as provided it to the National Stock Exchange of India Limited and BSE Limited for public dissemination.
Key Details of the QIP
The QIP issue, which was open from September 10, 2026, to September 16, 2026, aimed to raise funds through the issuance of equity shares. The gross proceeds from this issue amounted to ₹600.00 crore. The utilization of these funds was primarily allocated towards the repayment of borrowings, funding long-term working capital requirements, and general corporate purposes, as detailed in the offer document.
Utilization Breakdown
According to the report, the proceeds have been utilized across several key areas. The major allocations include ₹265.00 crore towards the repayment or pre-payment of certain borrowings. Another significant portion, ₹175.00 crore, has been directed towards funding long-term working capital requirements. Additionally, ₹140.00 crore has been utilized for general corporate purposes, with the amount for the latter not exceeding 25% of the gross proceeds, as per the company’s disclosures.
Unutilized Proceeds and Investments
As of September 30, 2026, the unutilized proceeds, including interest earned, were deployed in various fixed deposits across several reputable banks, including State Bank of India, Bandhan Bank, HDFC Bank, and Axis Bank. The total amount of unutilized proceeds, as detailed in the report, stands at ₹351.55 crore, with earnings projected at ₹0.43 crore during the quarter. The report also notes that monitoring the deployment of interest earned from unutilized proceeds is outside the scope of the Monitoring Agency’s current report.
Source: BSE
