The Board of Directors of NEOGEN Chemicals Ltd. approved the preferential issuance of 10,00,000 Equity Shares at a price of ₹1,610 per share (including a ₹1,600 premium) to an allottee belonging to the Promoter Group. This move aggregates to ₹161 crore. Additionally, the Board has called an Extra Ordinary General Meeting (EGM) for March 29, 2026, to seek shareholder approval for the transaction.
Approval for Capital Infusion via Preferential Allotment
Following its meeting held on Saturday, March 7, 2026, the Board of Directors of NEOGEN Chemicals Ltd. sanctioned the issuance of 10,00,000 Equity Shares on a preferential basis. The issue price was fixed at ₹1,610 per share, which includes a significant premium of ₹1,600 per share, aggregating to a total issuance value of ₹1,61,00,00,000 (Rupees One Hundred and Sixty-One Crores only).
This proposed allotment is directed towards an entity classified under the Promoter Group category. The determined issue price of ₹1,610 per share exceeds the calculated floor price (₹1,375.82) by 17.02%, satisfying relevant pricing guidelines.
Details of the Proposed Allottee
The proposed allottee, Cadamba Solutions Private Limited, is set to receive all 10,00,000 Equity Shares. Post-allotment, this entity is projected to hold 3.65% of the total share capital, whereas its pre-allotment holding was 0%.
Lock-in Period Requirements
As the shares are being allotted to the Promoter Group, the newly issued Equity Shares will be subject to mandatory lock-in provisions:
- The entire allotment shall be locked in for a period of 18 months from the date of trading approval.
- A maximum of twenty per cent of the total capital allotted under this preferential issue shall be locked-in for 18 months.
- Any allotment exceeding this twenty per cent threshold will be subject to a shorter lock-in period of six months from the date of trading approval.
- Furthermore, any pre-preferential shareholding held by the allottee will be locked in for 90 trading days from the date of trading approval for the new shares.
Next Steps: Shareholder Approval
To implement this Preferential Issue, the company is convening an Extra Ordinary General Meeting (EGM) for members on Sunday, March 29, 2026, at 11:30 a.m. via electronic means. The Record Date/Cutoff Date for determining voting eligibility for the EGM is set for Friday, March 20, 2026, during which the Register of Members and Share Transfer Register will remain closed until March 29, 2026.
Source: BSE
