Neogen Chemicals Launches ₹600 Crore QIP to Fund Dahej and Pakhajan Battery Materials Projects
Neogen Chemicals Limited has launched a Qualified Institutional Placement (QIP), setting the floor price at ₹2,189.73 per equity share. The QIP falls under a Board-approved capital-raising programme of up to ₹600 crore, intended to fund the company's ongoing expansion projects and reduce its debt.
The proceeds are directed toward Neogen's battery materials projects, executed through its subsidiary Neogen Ionics Limited. These include the Dahej Phase 1 facility, involving reconstruction of the organic chemicals plant at Dahej SEZ, Gujarat, following a fire incident, and the Pakhajan Phase 2 greenfield project in Dahej PCPIR, Gujarat, which covers new electrolyte and lithium electrolyte salt manufacturing capacity.
At Dahej, the plant has moved from reconstruction into active trial runs, with the full-scale electrolyte facility targeted for commissioning by September 2026. At Pakhajan, mechanical assembly of the electrolyte plant has been completed and trial production is underway, with commercial production of electrolyte targeted for H1 FY27 and electrolyte salt for H2 FY27.
The battery materials build-out supports Neogen's shift toward supplying lithium-ion battery electrolytes and lithium electrolyte salts for India's electric vehicle and energy storage sector. The company has stated that successful completion of the QIP is expected to bring its net debt down to below ₹150 crore following the placement.