Neogen Chemicals542665Routine SEBI update

CRISIL monitoring report on Rs 600.00 crore QIP proceeds: no deviation in utilisation

CRISIL Ratings' monitoring agency report on the QIP proceeds for the quarter ended September 30, 2026 is out.

By ScoutQuest · Tue 3 Nov 2026, 4:09 PM IST · 3 min read

Rs 600.00 croreQIP issue size (gross proceeds

Gross proceeds unutilised at quarter end₹351.12 Cr

Gross proceeds utilised during the quarter₹248.88 Cr

QIP issue size (gross proceeds Rs 600.00 crore: Gross proceeds unutilised at quarter end ₹351.12 Cr, Gross proceeds utilised during the quarter ₹248.88 Cr.

Gross QIP proceeds: Rs 600.00 crore
Proceeds utilised in quarter: Rs 248.88 crore
Proceeds unutilised at quarter end: Rs 351.12 crore

What the report covers

This is CRISIL Ratings' monitoring agency report on how Neogen Chemicals used the money raised through its Qualified Institutional Placement (QIP) for the quarter ended September 30, 2026. A monitoring agency is appointed to independently track whether money raised from investors is used for the purposes stated at the time of the issue.

Where the money was meant to go

Repayment or pre-payment of certain borrowings: Rs 265.00 crore
Long-term working capital requirements: Rs 175.00 crore
General corporate purposes: Rs 140.00 crore
Issue expenses: Rs 20.00 crore
Net proceeds: Rs 580.00 crore; Gross proceeds: Rs 600.00 crore

The issue ran from September 10, 2026 to September 16, 2026 and was in the form of Equity Shares. CRISIL monitors the gross proceeds amount.

How much was used in the quarter

Gross proceeds utilised during the quarter: Rs 248.88 crore
Gross proceeds still unutilised at quarter end: Rs 351.12 crore
Repayment of borrowings: Rs 3.57 crore used, Rs 261.43 crore still unutilised
Long-term working capital: Rs 163.07 crore used, Rs 11.93 crore unutilised
General corporate purposes: Rs 63.71 crore used, Rs 76.29 crore unutilised
Issue expenses: Rs 18.52 crore used, Rs 1.48 crore unutilised
Net proceeds utilised: Rs 230.35 crore, unutilised Rs 349.65 crore

The report notes that during the quarter the company transferred Rs 103.23 crore from its monitoring account to its various current/cash credit accounts, and that this transferred amount stands fully utilised at the end of the quarter.

Where the unused money is parked

The unutilised amount of Rs 351.12 crore is held in fixed deposits with State Bank of India, Bandhan Bank, HDFC Bank and Axis Bank, and as a bank balance in the monitoring account with State Bank of India. The largest single item is a State Bank of India fixed deposit of Rs 217.00 crore carrying a return of 5.60%. The monitoring account balance is Rs 73.28 crore, of which Rs 73.12 crore relates to the fresh issue. The market value of the deployment at quarter end is stated as Rs 351.55 crore.

What the agency reviewed

Utilisation was as per the disclosures in the placement document: Yes
Any change in the means of finance for the stated objects: No
Any unfavourable event affecting the viability of the objects: No
Any favourable event improving the viability of the objects: No
Any other information that may materially affect investor decisions: No
Delay in implementation of the objects: stated as not applicable as per the placement document dated September 16, 2026

The general corporate purposes head is subject to a cap: the amount used there does not exceed 25% of the gross proceeds, stated as amounting to Rs 150.00 crore.

What to take away

The report is a periodic utilisation check rather than a business update. The main quantitative points are that a little over two-fifths of the gross proceeds (Rs 248.88 crore of Rs 600.00 crore) has been deployed so far, the working capital and general corporate purposes heads have seen most of the spending, and repayment of borrowings has moved slowly at Rs 3.57 crore against a planned Rs 265.00 crore. The unspent balance is held in bank fixed deposits and the monitoring account.

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