Neogen Chemicals Limited has informed the Exchange about Outcome of board meeting approving issue of 10,00,000 equity shares on preferential issue basis and approving Notice of EGM and related timelines.
NEOGEN · price
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Neogen Chemicals' board has approved issuing 10,00,000 equity shares of Rs. 10 face value at Rs. 1,610 per share on a preferential basis to Cadamba Solutions Private Limited, a promoter group company. This is a premium of Rs. 1,600 per share and 17.02% above the SEBI-determined floor price of Rs. 1,375.82, aggregating to Rs. 161 crores. Post-issue, Cadamba Solutions will hold 3.65% of the company. The shares will be locked in for 18 months as per SEBI ICDR norms. An EGM has been scheduled for March 29, 2026 to seek shareholder approval, with the record date set for March 20, 2026.
The preferential allotment to a promoter group entity signals promoter confidence and commitment of fresh capital into the company. Existing shareholders will see a modest dilution (~3.65%), but since the price is above floor price, it reflects a fair valuation. Stock may see short-term pressure due to dilution but longer-term sentiment could improve given promoter skin in the game.