Neogen Chemicals Ltd. issued a Corrigendum to its March 7, 2026, Notice for the Extra Ordinary General Meeting (EGM) scheduled for March 29, 2026. The changes clarify details concerning the proposed preferential issue of equity shares, specifically related to the utilization of proceeds for its subsidiary, Neogen Ionics Limited (NIL), and adjustments to the explanatory statement regarding promoter group transfers.
Issuance of Corrigendum to EGM Notice
Neogen Chemicals Limited has issued a formal Corrigendum to the Notice for the Extraordinary General Meeting (EGM) originally announced on March 7, 2026, which is set to occur on Sunday, March 29, 2026. This correction follows requests from the stock exchanges for further clarifications regarding the proposed preferential issue of equity shares.
Key Changes to Preferential Issue Details
The Corrigendum mandates specific replacements and additions to the explanatory statement attached to the original EGM Notice, focusing primarily on the proposed utilization of issue proceeds.
Objects and Utilization of Proceeds
The original content on Page 21, Paragraph i, concerning the objects of the preferential issue, has been replaced. The revised plan details the utilization of proceeds as follows:
- Investment in Neogen Ionics Limited (NIL): ₹100 crores will be deployed for investment in NIL, a wholly owned subsidiary focused on battery chemicals business, including Lithium-ion battery material space. NIL plans to manufacture Electrolytes and Lithium salts at its new facilities in Pakhajan and Dahej SEZ, with an estimated combined Capex of approximately ₹1,500 crore.
- Meeting Working Capital Requirements: ₹21 crores.
- General Corporate Purposes: ₹40 crores. (Note: This amount must not exceed 25% of the Gross Proceeds).
The utilization timeline for all proposed objects is set for within 90 days from the date of allotment of the equity shares.
Updates on Allottee Status
A new point, xxii, is inserted on Page 28 detailing the current and proposed status post-allotment. The proposed allottee, Cadamba Solutions Private Limited (Cadamba), which belongs to the Promoter Group, will retain its status as Promoter Group following the allotment of 10,00,000 equity shares.
This update also clarifies that Cadamba’s proposed subscription price of ₹1,610 per equity share is at a premium over the floor price of ₹1,375.82. Furthermore, the document explains recent inter-se transfers of shares by gift among promoter family members and trusts, conducted pursuant to a regulatory exemption order, which do not result in any change of control of the Company.
Other Replaced Sections
Two other sections from the original Notice have been replaced:
- Point No. (xi) Certificate: The certificate from the Practicing Company Secretary regarding compliance with SEBI ICDR Regulations will be made available for inspection and posted on the Company’s website.
- Point No. xxi. c) on Page 27: This section has been replaced to detail the background, ownership, and proposed subscription of Cadamba Solutions Private Limited in the preferential issue.
This Corrigendum forms an integral part of the original EGM Notice, and all other provisions remain unchanged unless modified herein.
Source: BSE
