Company Update - Neogen Chemicals - ICICI Direct

Posted On : 2021-12-10 22:49:24( TIMEZONE : IST )

Company Update - Neogen Chemicals - ICICI Direct

Issuance of equity shares on preferential basis worth Rs. 225 crore:

  • Neogen chemical's board has decided to Issue up to 16.04 lakh equity shares of FV of Rs. 10 each at a price of Rs. 1,402.12 per equity share aggregating up to Rs. 225 crore on preferential basis. The group of investors remain SBI MF, Axis MF, Plutus wealth and White oak
  • The company foresees significant opportunities emerging in advance intermediates, custom synthesis and advance chemistry cells for lithium ion batteries. The objective of this fund raise is to support the company's growth and to capture the upcoming high potential opportunities in these segments
  • This should inch up return ratios and thereby valuations in medium term.

Key triggers for future price performance
  • Phase 1 and Phase 2 capex at Dahej bodes well for advance intermediates and custom synthesis revenue growth
  • Higher share of value added business portfolio to improve margins profile of the business
  • Allocation of incremental FCF towards organic/inorganic growth likely to expand return ratios further

For details, click on the link below: Link to the report

Shares of Neogen Chemicals Limited was last trading in BSE at Rs. 1725.90 as compared to the previous close of Rs. 1701.95. The total number of shares traded during the day was 13479 in over 1955 trades.

The stock hit an intraday high of Rs. 1768.95 and intraday low of 1705.25. The net turnover during the day was Rs. 23361087.00.

Source : Equity Bulls


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