Maharashtra-based battery chemicals manufacturer Neogen Chemicals has raised approximately ₹6 billion (~$62 million) through its first qualified institutional placement (QIP) of equity shares, which was subscribed more than 6.5 times.

The QIP received participation from domestic and global institutional investors, including mutual funds, alternative investment funds, non-banking financial companies, insurance companies, and foreign portfolio investors. Participants included ICICI Prudential Mutual Fund, Invesco Mutual Fund, Mirae Asset Mutual Fund, SBI Life Insurance, White Oak Capital Mutual Fund, Axis Mutual Fund, and Abu Dhabi Investment Authority.

The company said it plans to use the proceeds to repay or prepay, in full or in part, certain borrowings, fund long-term working capital requirements, and meet general corporate purposes.

Neogen said the capital raise is intended to reduce its outstanding debt and debt servicing costs and improve its debt-to-equity ratio. This would provide financial flexibility to fund additional business requirements and growth opportunities.

The company allotted 2,660,753 equity shares with a face value of ₹10 (~$0.1) each at an issue price of ₹2,255 (~$22.55) per share. The issue price included a share premium of ₹2,245 (~$22.45) per share and was above the floor price of ₹2,189.73 (~$21.9) per share.

Following the placement, Neogen’s paid-up equity share capital increased from ₹273.8 million (~$2.74 million), comprising 27,381,674 equity shares of ₹10 each, to approximately ₹300.4 million (~$3.12 million), comprising 30,042,427 equity shares.

Neogen manufactures specialty bromine chemicals, lithium chemicals, and advanced battery materials

Its wholly owned subsidiary, Neogen Ionics, focuses on battery materials projects. Last year, Neogen Ionics formed a joint venture with Morita Investment, a subsidiary of Japan-based Morita Chemicals Industries, to advance the lithium-ion battery business.

Lithium-ion batteries currently dominate India’s energy storage market due to their commercial maturity and scalability. However, vanadium redox flow batteries are emerging as an alternative for six-to-eight-hour grid-scale storage, while zinc-air batteries are being explored for much longer-duration applications. These technologies could complement lithium-ion systems by meeting different storage-duration needs.