Step-down subsidiary approves Rs. 76.80 crore preferential issue to Morita Investment Limited

Neogen Morita New Materials Ltd (NML), a step-down subsidiary, has approved issuing 7,20,000 equity shares at Rs. 1,066.66 each, aggregating Rs. 76,80,00,000, on a preferential basis to Morita Investment Limited.

Sat 26 Sep 2026

Number of Equity Shares

7,20,000

Price per Share

Rs. 1,066.66

Aggregate Amount

Rs. 76,80,00,000

Post-Allotment Stake of MIL

9.09%

JV Agreement Date

August 31, 2025

What was announced

The Board of Neogen Morita New Materials Limited (NML) approved a preferential issue of equity shares. NML is a wholly owned subsidiary of Neogen Ionics Limited, which in turn is a wholly owned subsidiary of Neogen Chemicals Limited, making NML a step-down subsidiary.

Terms of the issue

• Securities: equity shares of face value Rs. 10/- each
• Number of shares: 7,20,000 Equity Shares
• Price: Rs. 1,066.66 per Equity Share, including a premium of Rs. 1,056.66 per Equity Share
• Aggregate amount: Rs. 76,80,00,000 (Rupees Seventy Six Crore Eighty Lakh only)
• Number of proposed allottees: 1 (One)

Who is subscribing

The allottee is Morita Investment Limited (MIL), a wholly owned subsidiary of Morita Chemicals Industries Co. Limited. MIL is classified under the Non-Promoter Public Category in NML.

Shareholding change in NML

• Pre-preferential allotment holding of MIL: 0 shares, 0%
• Post-preferential allotment holding: 7,20,000 shares, 9.09%

Context and approvals

The issue is being made in accordance with the Joint Venture Agreement entered into between Neogen Ionics Limited and MIL on August 31, 2025, and the applicable provisions of the Companies Act, 2013. It is subject to the approval of the Members of the Company and other necessary statutory and regulatory approvals. The preferential issue was also approved with requisite majority by the shareholders of NML at an Extra-Ordinary General Meeting held on the same day.

Since NML is an unlisted public limited company, the lock-in provisions of the SEBI ICDR Regulations are stated as not applicable.

How investors may read it

This is a capital infusion into the step-down subsidiary by the Japanese joint venture partner's investment arm, bringing in funds at a substantial premium to face value while diluting the group's stake in NML to the extent of the 9.09% allotted.

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