Neogen Chemicals Limited has announced that its subsidiary, Neogen Ionics Limited (NIL), will invest ₹100.11 crore in its step-down subsidiary, Neogen Morita New Materials Limited (NML). This investment will be executed through a rights issue of 71,00,000 equity shares at a price of ₹141 per share. The capital infusion is primarily aimed at supporting NML’s operational requirements and expansion into the lithium-ion battery materials market.
Strategic Capital Infusion
On April 28, 2026, the Board of Directors of Neogen Ionics Limited (NIL), a wholly owned subsidiary of Neogen Chemicals, approved the subscription of 71,00,000 equity shares in Neogen Morita New Materials Limited (NML). The transaction, valued at ₹100.11 crore, strengthens the capital base of the step-down subsidiary to support its strategic growth objectives.
Expansion into Battery Materials
Neogen Morita New Materials Limited was incorporated on July 30, 2025, specifically to capture emerging opportunities within the lithium-ion battery ecosystem. The funds raised through this rights issue will be utilized to facilitate the acquisition of salt businesses, address CAPEX and OPEX requirements, and meet the growing global market demand for electrolyte salts. This move aligns with the company’s long-term vision of becoming a key player in the clean energy material space.
Capital Restructuring and Timeline
In conjunction with this investment, NML has approved an increase in its authorized share capital from ₹5 crore to ₹9.90 crore. The subscription and allotment process is expected to be finalized within 60 days from the date of receiving the share application money, ensuring a swift deployment of capital for the company’s planned industrial initiatives.
Source: BSE
