The Board of Directors of Neogen Chemicals Ltd. approved a significant corporate action on March 7, 2026. The key decision was the Preferential Issue of 10,00,000 Equity Shares at an issue price of ₹1,610 per share (including a ₹1,600 premium), aggregating to ₹161.00 crore. The company also convened an Extra Ordinary General Meeting (EGM) for March 29, 2026, to seek shareholder approval for this issuance to Cadamba Solutions Private Limited.
Approval for Preferential Equity Issuance
Following a Board meeting held on Saturday, March 7, 2026, Neogen Chemicals Ltd. announced the approval of a substantial Preferential Issue of securities. The proposal entails issuing 10,00,000 Equity Shares with a face value of ₹10 each.
The issue price has been set at ₹1,610 per share. This price includes a significant premium of ₹1,600 per share, leading to a total aggregate issue value of ₹1,61,00,00,000 (Rupees One Hundred and Sixty-One Crores only).
Allottee Details and Post-Allotment Holding
The entirety of the proposed allotment, totaling 10,00,000 shares, is directed to a single allottee:
- Name of Proposed Allottee: Cadamba Solutions Private Limited
- Category: Promoter Group
Based on the details provided, the post-allotment holding for Cadamba Solutions Private Limited will be 3.65%, as their pre-preferential allotment holding was 0%.
Shareholder Approval and Record Date
To finalize the transaction, the company is convening an Extra Ordinary General Meeting (EGM) on Sunday, March 29, 2026, at 11:30 a.m. via video conferencing (OAVM).
The Record Date/Cutoff Date for determining eligibility for remote e-voting and attending the EGM is set for Friday, March 20, 2026. Consequently, the Register of Members and Share Transfer Register will remain closed from March 21, 2026, to March 29, 2026 (both days inclusive).
Mandatory Lock-in Requirements
The Equity Shares allotted to the Promoter Group member will be subject to mandatory lock-in periods:
- The entire pre-preferential shareholding of the allottee will be locked in from the Relevant Date up to a period of 90 trading days from the date of trading approval.
- The allotted shares will be locked in for a period of 18 months from the date of trading approval.
- A specific condition states that not more than twenty per cent of the total capital of the issuer shall be locked-in for 18 months. Any shares allotted exceeding this twenty per cent threshold shall be locked-in for a shorter period of six months from the date of trading approval.
Source: BSE
