Neogen Chemicals Raises ₹600 Crore In First QIP As Issue Gets 6.5 Times Subscription, Stock Doubles In 2026

Neogen Chemicals has raised nearly ₹600 crore through its first qualified institutional placement (QIP), with the issue receiving bids for more than 6.5 times the shares on offer.

The specialty chemicals maker allotted 26,60,753 equity shares to qualified institutional buyers at ₹2,255 apiece, taking the total amount raised to ₹599.99 crore. The issue price was above the QIP floor price of ₹2,189.73 per share.

The QIP attracted a mix of domestic and overseas institutional investors, including ICICI Prudential Mutual Fund, Invesco Mutual Fund, Mirae Asset Mutual Fund, SBI Life Insurance, WhiteOak Capital Mutual Fund, Axis Mutual Fund and Abu Dhabi Investment Authority.

The stock has also had a strong run this year. Neogen Chemicals shares have gained about 102% so far in 2026 and touched a 52-week high of ₹2,498.50 on September 18.

The shares have also risen sharply over the past six months, taking the company's market capitalisation higher ahead of the QIP.

Following the allotment, the company's paid-up equity share capital rose to about ₹30.04 crore from ₹27.38 crore. The number of outstanding shares increased to 3,00,42,427 from 2,73,81,674.

Use Of Proceeds

The company plans to use the QIP proceeds to repay or prepay borrowings, meet long-term working capital requirements and for general corporate purposes.

The fundraise comes as the company continues to operate in the specialty chemicals and battery materials businesses. Part of the proceeds will go towards its existing borrowings, while the rest will be available for working capital and other corporate requirements.

The QIP comes at a time when the company is reporting higher revenue and profit. In the June 2026 quarter, consolidated net profit rose 66.76% year-on-year to ₹17.11 crore, while revenue increased 34.04% to ₹250.29 crore.

Neogen Chemicals makes bromine-based and lithium-based specialty chemicals used across a range of industrial applications. Its battery materials business is another area where the company has been investing as it expands its product portfolio.

The ₹600 crore QIP is also larger than the equity capital the company had raised during the seven years since its listing, according to the company.

The fresh shares issued through the QIP will increase the company's overall share count, while the proceeds will strengthen its balance sheet and provide funds for working capital and other business requirements.

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