The Board of Directors of Neogen Chemicals Limited has approved a Preferential Issue of 10,00,000 Equity Shares at a price of ₹1,610 per share (including a premium of ₹1,600). The total issue size aggregates to ₹161.00 Crores. The allotment is directed towards an entity within the Promoter Group. Consequently, the Board has called for an Extra Ordinary General Meeting (EGM) on March 29, 2026, to seek shareholder approval for this transaction.
Key Board Decisions on Share Issuance
Following a Board meeting held on Saturday, March 7, 2026, Neogen Chemicals Limited announced the approval of a significant capital raise through a Preferential Issue of equity shares. The Board sanctioned the issuance of 10,00,000 Equity Shares, each with a face value of ₹10.
The issue price was set at ₹1,610 per share, which includes a substantial premium of ₹1,600 per share. This results in an aggregate transaction value of ₹1,61,00,00,000 (Rupees One Hundred and Sixty-One Crores only). This issuance is being conducted on a preferential basis in compliance with the relevant capital issue regulations.
Allotment Details and Post-Allotment Holding
The proposed allotment is directed to a single allottee, Cadamba Solutions Private Limited, which belongs to the Promoter Group category. Post-allotment, this entity is expected to hold 10,00,000 Equity Shares, representing 3.65% of the total post-allotment capital. Prior to the issue, the entity held 0%.
Shareholder Approval and Meeting Schedule
To effectuate the Preferential Issue, the Company must obtain approval from its Members. Therefore, the Board resolved to convene an Extra Ordinary General Meeting (EGM) on Sunday, March 29, 2026, at 11:30 a.m. via remote e-voting and Audio-Visual Means (OAVM). The specified Record Date for determining eligibility for voting at the EGM is Friday, March 20, 2026.
Lock-in Requirements
The Equity Shares allotted to the Promoter Group entity will be subject to mandatory lock-in periods. The entire holding shall be locked in for a period of 18 months from the date trading approval is granted. Furthermore, an important provision states that not more than twenty per cent (20%) of the total capital allotted under this issue shall be locked-in for the full 18 months; any shares exceeding this 20% threshold must be locked in for six months from the date of trading approval.
Source: BSE
