Neogen Chemicals to raise Rs 253 cr through issue of preferential shares

Neogen Chemicals will raise Rs 253 crore through an issue of preferential shares to investors to expand business.

In a regulatory filing on Wednesday, the company informed that the Board of Directors considered and approved the allotment of 14,42,358 equity shares of face value of Rs 10 each at a price of Rs 1754.07 per share, aggregating up to Rs 252.99 crore on a preferential basis.

SBI Large and Midcap Fund, SBI Contra Fund, SBI Equity Savings Fund, Quant Small Cap Fund, TATA India Tax Saving Fund, India Acorn Fund Ltd, Ashoka India Equity Investment Trust PLC, Invesco India Small Cap Fund and Alchemy Long term Ventures Fund have been allotted these preference shares.

The equity shares allotted by the company to these investors will be listed on the stock exchanges.

"The company is in the business of manufacturing specialty Chemicals. The Company anticipates growth opportunities in its existing organic/ inorganic business and continues to evaluate various avenues for growth and expansion of its battery material business," Neogen had said last month in postal ballot notice.

An equity infusion will also strengthen the company's balance sheet and reduce the finance cost of the company. Accordingly, the company proposes to raise capital for the purposes of Investment in Subsidiaries, meeting working capital requirements, and general corporate purposes.

Neogen Chemicals has four manufacturing facilities in Maharashtra, Gujarat and Hyderabad.