Neogen Chemicals Limited has informed the Exchange regarding a press release dated August 12, 2025, titled "Neogen Chemicals raises INR 200 crore via NCDs".
NEOGEN · price
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Neogen Chemicals has raised INR 200 crore through privately placed, secured, listed, redeemable non-convertible debentures (NCDs). The NCDs carry a 10.50% coupon rate, monthly interest payments, and a tenure of up to 30 months. They are rated CRISIL A with a Negative outlook and will be listed on the BSE. The issue was fully subscribed by institutional investors, with the company citing a favorable falling interest rate environment. Proceeds will fund ongoing growth projects, including CAPEX plans, and provide liquidity to rebuild the Organic Chemicals plant at Dahej SEZ while awaiting insurance proceeds.
The fundraise strengthens Neogen's balance sheet and supports its growth and capex plans, including the Dahej SEZ plant rebuild. However, the 10.50% coupon and the CRISIL A Negative outlook suggest higher borrowing costs and some credit pressure, which existing shareholders should monitor as it will add to interest expenses.