Neogen Chemicals Limited is seeking shareholder approval for material related party transactions (RPTs) totaling up to ₹2,524 crore. The resolutions cover transactions between the company and its step-down subsidiary, Neogen Morita New Materials Limited (NML), and between its wholly-owned subsidiary, Neogen lonics Limited, and NML. These transactions, spanning from December 8, 2026, to December 7, 2027, aim to facilitate operational efficiency, leverage capabilities, and strengthen the financial position of the group.
Neogen Chemicals Seeks Shareholder Approval for RPTs
Neogen Chemicals Limited announced today that its Board of Directors has approved seeking shareholder consent for significant related party transactions (RPTs) through a postal ballot. These resolutions, to be voted on via remote e-voting, are designed to facilitate ongoing business operations and strategic initiatives across the company’s subsidiaries.
Resolution 1: Company and NML Transactions
The first resolution pertains to approving material RPTs between Neogen Chemicals Limited and its step-down subsidiary, Neogen Morita New Materials Limited (NML). These transactions are proposed to be entered into for a period commencing from December 8, 2026, till December 7, 2027, with an aggregate value not exceeding ₹500 Crore. The primary transaction involves granting corporate guarantees, securities, or indemnities to support NML’s availing of loans and credit facilities. This is intended to support NML’s CAPEX and working capital requirements, leveraging its operational expertise in specialty chemicals and battery chemicals.
Resolution 2: Neogen lonics Limited and NML Transactions
The second resolution seeks approval for material RPTs between Neogen lonics Limited, a wholly-owned subsidiary of the Company, and Neogen Morita New Materials Limited (NML), a step-down subsidiary. These transactions, also for the period from December 8, 2026, till December 7, 2027, have an aggregate value not exceeding ₹2,024 Crore. The proposed transactions include various arrangements such as unsecured loans, inter-corporate deposits, corporate guarantees, sale and purchase of goods and materials, leasing of property, rendering of services, infrastructure and resource sharing, and asset transfers. These are expected to foster efficient utilization of manufacturing infrastructure, technology, and operational resources, benefiting the overall interest of the Company and its shareholders.
Voting Process and Timeline
Shareholders will cast their votes electronically through a remote e-voting process. The remote e-voting period commences on Saturday, November 7, 2026, at 9:00 a.m. (IST) and concludes on Sunday, December 6, 2026, at 5:00 p.m. (IST). The notice emphasizes that voting is restricted to e-voting only. Members are advised to carefully read the instructions provided for e-voting.
Scrutiny and Announcement of Results
CS Devendra Deshpande has been appointed as the Scrutinizer to conduct the postal ballot and e-voting process. The Scrutinizer’s report will be submitted, and the results of the voting will be announced within two working days from the conclusion of the e-voting period, i.e., by Tuesday, December 8, 2026. The results will be made available on the Company’s website and the websites of the stock exchanges.
Source: BSE
