Neogen Chemicals Promoter Sells 5.67% Stake to SBI Mutual Fund and White Oak Group

Neogen Chemicals Limited, a prominent Indian manufacturer with over 35 years of expertise in Bromine-based and Lithium-based specialty chemicals, has expanded into Lithium-Ion Battery materials production via its wholly owned subsidiary, Neogen Ionics Limited.

The company informed the stock exchanges that Mr Haridas Kanani, Chairman and Managing Director, an IIT Bombay Chemical Engineering graduate with over 55 years of professional experience, has recently divested approximately 5.67% of his equity in the company. Despite this stake sale, the promoters retain majority ownership and remain steadfast in their commitment to the company’s goals and ongoing success.

The divested stake was acquired by longstanding institutional investors, SBI Mutual Fund and White Oak Group, underscoring their confidence in Neogen Chemicals’ long-term prospects. The proceeds from this transaction will support the promoter, now nearing 80 years old, in securing long-term financial plans for himself and his family.

For the fiscal year 2024, the company reported consolidated revenues of ₹691 crore, despite significant declines in raw material prices, particularly bromine and lithium. EBITDA stood at ₹110 crore, with a Profit After Tax of ₹36 crore. Neogen Chemicals is ambitiously planning to expand into the burgeoning sector of Battery Materials for electric vehicle applications through domestic manufacturing of Electrolyte and Lithium Electrolyte Salts.

About Neogen Chemicals Limited

Neogen Chemicals Ltd is one of the leading manufacturers in India, specialising in Bromine-based and Lithium-based speciality chemicals. Its diverse product lineup includes both Organic and Inorganic chemicals used in pharmaceutical and agrochemical intermediates, engineering fluids, electronic chemicals, polymer additives, water treatment, construction chemicals, aroma chemicals, etc.

Neogen has significantly expanded its product range over the years and currently offers a wide array of over 246 speciality chemicals. The company is actively expanding into new applications, particularly in lithium-ion battery materials for energy storage and Electric Vehicles (EV) applications, further solidifying its presence in both Indian and global markets.

On July 1, 2024, the share price of Neogen Chemicals Ltd opened at ₹1,595.00, touching the day’s high at ₹1,630.00, as of 10:49 AM on the NSE.

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