Neogen Chemicals has officially launched its Qualified Institutions Placement (QIP) of equity shares aggregating up to ₹600 crore, as announced by the company. The fund-raising committee approved the preliminary placement document and draft application form for the issue at a meeting on September 10, 2026, authorizing the opening of the QIP for eligible qualified institutional buyers with effect from the same day. The floor price has been calculated using the pricing formula prescribed under Regulation 176(1) of the Securities and Exchange Board of India's (SEBI) Issue of Capital and Disclosure Requirements Regulations, with the committee fixing September 10, 2026 as the relevant date for the issue.
The company has set the floor price at ₹2,189.73 per equity share, representing a discount of 8.25% to the previous closing price of ₹2,386.55 on BSE. The stock declined as much as 4.6% to ₹2,275.95 per share during Friday's trading session on September 11, 2026, following the QIP announcement. The company can, at its discretion, offer a discount of up to 5% to the floor price, according to the regulatory filing. The QIP comprises equity shares of face value ₹10 each, with the final issue size and pricing to be determined in consultation with the bookrunning lead manager(s).
The fundraise follows approval from the company's board on July 24, 2026 and shareholder approval through a special resolution passed on August 21, 2026, as reported by Business Standard. The company aims to utilise the funds raised through QIP for repayment/pre-payment, in full or part, of certain borrowings availed by the company; funding its long-term working capital requirements; and general corporate purposes. The fund will also be utilised for reducing its debt footprint and supporting its battery materials projects (Dahej Phase 1 and Pakhajan Phase 2).
Neogen Chemicals demonstrated strong financial performance in Q1 FY27, recording a 66.76% increase in consolidated net profit to ₹17.11 crore on a 34.04% rise in revenue to ₹250.29 crore compared with Q1 FY26. The company is one of India's leading manufacturers of Bromine-based and Lithium-based specialty chemicals, with product offerings comprising organic as well as inorganic chemicals. The specialty chemical stock has delivered close to 94% return in 2026 so far, with a return on equity (ROE) of 6.64% and 13.38% return in three months. The stock touched a 52-week high of ₹2,482.70 per share on August 18, 2026, while its 52-week low was ₹978 per share on December 9, 2026.
