NEOGEN Chemicals has issued a notice for an Extra Ordinary General Meeting (EGM) to be held on Sunday, March 29, 2026, at 11:30 a.m. IST via Video Conferencing (VC/OAVM). The primary special business is to approve the issuance of 10,00,000 Equity Shares on a preferential basis to a Promoter group member, Cadamba Solutions Private Limited, at an issue price of ₹1,610 per share. The cut-off date for determining voting eligibility is Friday, March 20, 2026.
EGM Details and Virtual Meeting
NEOGEN Chemicals Limited has announced that its Extra Ordinary General Meeting (EGM) will convene on Sunday, March 29, 2026, at 11:30 a.m. The meeting will be conducted entirely through Video Conferencing (VC) / Other Audio-Visual Means (OAVM) as per regulatory permissions. The cut-off date for determining which members are eligible to vote on the resolutions is strictly set as Friday, March 20, 2026. Remote e-voting facilities are available from Thursday, March 26, 2026, 9:00 A.M (IST) until Saturday, March 28, 2026, 5:00 P.M (IST).
Special Business: Preferential Issue Approval
The key resolution on the agenda involves seeking the Members’ approval for a Special Resolution regarding the Issuance of Equity Shares on a Preferential Basis to a Promoter group member. This transaction entails the creation, issue, offer, and allotment of 10,00,000 Equity Shares.
Pricing and Allocation
- The Equity Shares have a face value of ₹10 each.
- The issue price is set at ₹1,610 per Equity Share, which includes a premium of ₹1,600.
- The total aggregate funds raised through this issuance will be ₹1,61,00,00,000 (Rupees One Hundred and Sixty One Crores only).
- The floor price, calculated per pricing guidelines, was ₹1,375.82 per Equity Share, making the issue price 17.02% above the floor price.
- The proposed allottee is Cadamba Solutions Private Limited, categorized under the Promoter Group.
Proposed Use of Proceeds
The Board proposes to utilize the funds raised from this Preferential Issue for the following stated objects:
| Object of Issue | Amount (₹ in Crores) | Utilization Timeline |
|---|---|---|
| Investment in wholly owned subsidiary, Neogen Ionics Limited | 80 – 100 | Up to 90 days |
| Meeting Working Capital Requirements | 21 – 41 | Up to 90 days |
| General Corporate Purposes | 40 | Up to 90 days |
Note that the utilization for general corporate purposes shall not exceed 25% of the Gross Proceeds. Pending utilization, the funds will be invested in money market instruments or bank deposits.
Shareholding Pattern Impact
Following the allotment of 10,00,000 shares, the shareholding pattern shows a significant shift in the Promoter Group’s stake. Pre-issue, the Promoter Group held 51.23%, which is expected to increase to 53.01% post-issue. Specifically, the Ultimate Beneficial Owner, Dr. Harin Kanani, will see his post-issue shareholding rise to 3.65%.
Lock-in Provisions
The Equity Shares allotted to the Promoter Group category will be subject to a lock-in period of 18 months from the date of trading approval. Furthermore, the entire pre-preferential shareholding of the Proposed Allottee will be locked-in for a period of 90 trading days from the date of trading approval.
E-Voting Instructions Summary
Members holding shares electronically must use the provided e-voting websites (NSDL or CDSL portals) for remote voting or voting during the EGM. Members holding shares physically or Non-Individual shareholders in demat mode should utilize the InstaVote platform for registration and voting. Members are strongly advised to keep their contact details updated with their Depositories (DP) or the Company for future electronic communications.
Source: BSE
