Neogen Chemicals Limited has informed the Exchange about Intimation of allotment of NCDs and record date for payment of first interest.
NEOGEN · price
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Neogen Chemicals has allotted 20,000 secured, listed, rated, redeemable NCDs of Rs. 1,00,000 each, raising Rs. 200 crore in total through private placement to 7 investors. The issue was fully subscribed on August 12, 2025, and will be listed on BSE's Wholesale Debt Market segment. The NCDs carry a coupon of 10.50% per annum, payable monthly, with a tenure of 30 months maturing on February 12, 2028. The principal will be repaid at maturity, and the issue is backed by a subservient charge on the company's current and fixed assets, including properties in Vadodara and Bharuch, Gujarat. The first interest payment is scheduled for August 31, 2025, with a record date of August 16, 2025.
The company has raised Rs. 200 crore through debt at 10.50% annual interest, which is a reasonable cost of borrowing. This increases the company's debt obligations and interest expenses but avoids equity dilution. Shareholders should note the higher leverage and the monthly interest burden, though funds likely support business expansion or working capital needs.