Neogen Ionics Limited, a wholly owned subsidiary of Neogen Chemicals Limited, has approved subscription of 71,00,000 equity shares in step-down subsidiary Neogen Morita New Material Limited through a rights issue worth Rs 100,11,00,000. The shares will be issued at Rs 141 per share with a face value of Rs 10 each. Neogen Morita simultaneously increased its authorized capital from Rs 5,00,00,000 to Rs 9,90,00,000 to accommodate the issue. The funds will support salt business acquisition, CAPEX/OPEX requirements, and general corporate purposes for the lithium-ion battery materials focused company incorporated in July 2025.

Neogen Chemicals Subsidiary Approves Rs 100.11 Crore Rights Issue for Battery Materials Expansion

Neogen Chemicals Limited's subsidiary structure has witnessed a significant capital infusion as Neogen Ionics Limited approved a substantial rights issue subscription in its step-down subsidiary. The Board of Directors of Neogen Ionics Limited, a wholly owned subsidiary of Neogen Chemicals Limited, approved the subscription of equity shares in Neogen Morita New Material Limited on April 28, 2026.

Rights Issue Details

The rights issue involves the subscription of up to 71,00,000 equity shares with specific terms and conditions designed to strengthen the subsidiary's capital base.

Parameter Details Number of Shares 71,00,000 equity shares Face Value Rs 10 per share Issue Price Rs 141 per share Total Amount Rs 100,11,00,000 Issue Type Rights basis

Capital Structure Enhancement

Neogen Morita New Material Limited has simultaneously approved an increase in its authorized share capital to accommodate the rights issue. The Board of NML, subject to shareholder approval, has approved significant changes to its capital structure.

Capital Component Previous Revised Authorized Capital Rs 5,00,00,000 Rs 9,90,00,000 Number of Shares 50,00,000 shares 99,00,000 shares Current Paid-up Capital Rs 10,00,000 Rs 10,00,000

Business Objectives and Fund Utilization

The funds raised through this rights issue will serve multiple strategic purposes for Neogen Morita New Material Limited. The company plans to utilize the capital for acquiring salt business operations, meeting both capital expenditure and operational expenditure requirements, and pursuing other general corporate purposes as determined by the Board in compliance with applicable laws.

Company Background and Strategic Focus

Neogen Morita New Material Limited, incorporated on July 30, 2025, operates as an unlisted public limited company under Indian laws. The company maintains its registered office at Dev Corpora Building, Thane, Maharashtra, and focuses specifically on growth opportunities in the lithium-ion battery material space.

The company's primary business objective centers on electrolyte salts production, addressing both internal consumption requirements for electrolytes and meeting global market demand in the rapidly expanding battery materials sector.

Transaction Structure and Compliance

This acquisition falls under the category of related party transactions between Neogen Ionics Limited and Neogen Morita New Material Limited, both subsidiaries of Neogen Chemicals Limited. The transaction is exempted under regulation 23 of Listing regulations and section 188 of the Companies Act, 2013. The subscription and allotment process is expected to be completed within 60 days from the date of receipt of share application money by NML from NIL, with the consideration being entirely cash-based.

Neogen Chemicals Limited has successfully completed its preferential allotment of 10,00,000 equity shares to Cadamba Solutions Private Limited, raising ₹161 crore. The Fund Raising Committee of the Board of Directors approved the allotment on April 18, 2026, following regulatory approvals from both BSE Limited and National Stock Exchange of India Limited received on April 17, 2026.

Allotment Details and Pricing

The equity shares, with a face value of ₹10 each, were allotted at ₹1,610 per share, including a premium of ₹1,600 per share. The issue price represents a 17.02% premium above the floor price of ₹1,375.82, calculated in accordance with Regulation 164 of the SEBI ICDR Regulations.

Parameter: Details Total Shares Allotted: 10,00,000 Issue Price: ₹1,610 per share Premium: ₹1,600 per share Total Amount Raised: ₹161,00,00,000 Floor Price: ₹1,375.82 Premium over Floor Price: 17.02%

Shareholding Impact

Following the allotment, the company's issued, subscribed, and paid-up equity share capital increased from ₹26,38,16,740 to ₹27,38,16,740. Cadamba Solutions Private Limited, categorized as a Promoter Group Member, now holds 10,00,000 equity shares representing 3.65% of the company's total share capital.

Shareholding Details: Pre-Allotment Post-Allotment Cadamba Solutions Holdings: 0 shares (0%) 10,00,000 shares (3.65%) Company Share Capital: ₹26,38,16,740 ₹27,38,16,740

Regulatory Compliance and Lock-in

The allotted equity shares will be listed on both BSE Limited and National Stock Exchange of India Limited, ranking pari passu with existing equity shares in all respects, including dividend payment and voting rights. The shares are subject to lock-in requirements under Regulation 167 of the SEBI ICDR Regulations, with equity shares allotted to the promoter group category locked in for 18 months from the date of trading approval.

The preferential issue was conducted pursuant to the Special Resolution passed by members at the Extraordinary General Meeting held on March 29, 2026. The company confirmed that there has been no cancellation or termination of the proposal for issuance of securities, ensuring the successful completion of this capital raising initiative.

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