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Specialty chemicals manufacturer Neogen Chemicals Ltd on Monday (August 31) said its wholly owned subsidiary Neogen Ionics Ltd (NIL) will transfer an undertaking to its step-down wholly owned subsidiary Neogen Morita New Materials Ltd (NML) for a lump-sum consideration of ₹245 crore.
The transaction will be undertaken on a going-concern basis through a Business Transfer Agreement (BTA), subject to applicable regulatory approvals and completion of conditions precedent.
The boards of Neogen Ionics Ltd and Neogen Morita New Materials Ltd approved the transaction on Monday. The shareholders of Neogen Ionics Ltd have also approved the proposed transfer.
ALSO READ | Neogen Chemicals gets ₹15 crore insurance payout for Dahej fire; total claim reaches ₹155 crore
The BTA is expected to be executed within a week, while the transaction is likely to be completed on or before March 31, 2027. The consideration of ₹245 crore, after deducting relevant liabilities and including the relevant assets, is to be received on or before March 31, 2027, according to the filing.
The undertaking had a net worth of ₹155.52 crore as of March 31, 2026. It contributed no revenue during the financial year ended March 31, 2026, and accounted for 19.05% of Neogen Chemicals’ consolidated net worth and 57.36% of Neogen Ionics Ltd's consolidated net worth.
Neogen Ionics Ltd is an unlisted public limited company incorporated in March 2023 and is engaged in manufacturing specialty organic and inorganic chemicals, including battery materials, electrolytes, electrolyte salts and electrolyte additives. Its turnover stood at ₹35.97 crore as of March 31, 2026.
ALSO READ | Neogen Chemicals MD outlines FY26 revenue targets, including for battery segment
Neogen Morita New Materials Ltd is an unlisted public limited company incorporated in July 2025 and is engaged in manufacturing chemicals, including electrolyte salts such as LiPF6 and NaPF6. Its turnover was nil as of March 31, 2026.
Neogen Chemicals said the transaction is part of its strategic initiative to consolidate its Electrolyte Salt (LiPF6) businesses under NML.
The transaction is classified as a related-party transaction between NIL and NML. The company said it is exempted under Regulation 23 of the Securities and Exchange Board of India (SEBI) Listing Regulations and Section 188 of the Companies Act, 2013, and will be carried out on an arm’s-length basis.
The transaction does not form part of any scheme of arrangement. Neogen Chemicals said the undertaking constitutes an undertaking under Section 180 of the Companies Act, 2013, and the required approval under the section has been obtained.
ALSO READ | Neogen expects battery chemical sales to more than double to ₹250 crore by FY26
Shares of Neogen Chemicals Ltd ended at ₹2,208.00, down by ₹1.85, or 0.084%, on the BSE.
The transaction will be undertaken on a going-concern basis through a Business Transfer Agreement (BTA), subject to applicable regulatory approvals and completion of conditions precedent.
The boards of Neogen Ionics Ltd and Neogen Morita New Materials Ltd approved the transaction on Monday. The shareholders of Neogen Ionics Ltd have also approved the proposed transfer.
ALSO READ | Neogen Chemicals gets ₹15 crore insurance payout for Dahej fire; total claim reaches ₹155 crore
The BTA is expected to be executed within a week, while the transaction is likely to be completed on or before March 31, 2027. The consideration of ₹245 crore, after deducting relevant liabilities and including the relevant assets, is to be received on or before March 31, 2027, according to the filing.
The undertaking had a net worth of ₹155.52 crore as of March 31, 2026. It contributed no revenue during the financial year ended March 31, 2026, and accounted for 19.05% of Neogen Chemicals’ consolidated net worth and 57.36% of Neogen Ionics Ltd's consolidated net worth.
Neogen Ionics Ltd is an unlisted public limited company incorporated in March 2023 and is engaged in manufacturing specialty organic and inorganic chemicals, including battery materials, electrolytes, electrolyte salts and electrolyte additives. Its turnover stood at ₹35.97 crore as of March 31, 2026.
ALSO READ | Neogen Chemicals MD outlines FY26 revenue targets, including for battery segment
Neogen Morita New Materials Ltd is an unlisted public limited company incorporated in July 2025 and is engaged in manufacturing chemicals, including electrolyte salts such as LiPF6 and NaPF6. Its turnover was nil as of March 31, 2026.
Neogen Chemicals said the transaction is part of its strategic initiative to consolidate its Electrolyte Salt (LiPF6) businesses under NML.
The transaction is classified as a related-party transaction between NIL and NML. The company said it is exempted under Regulation 23 of the Securities and Exchange Board of India (SEBI) Listing Regulations and Section 188 of the Companies Act, 2013, and will be carried out on an arm’s-length basis.
The transaction does not form part of any scheme of arrangement. Neogen Chemicals said the undertaking constitutes an undertaking under Section 180 of the Companies Act, 2013, and the required approval under the section has been obtained.
ALSO READ | Neogen expects battery chemical sales to more than double to ₹250 crore by FY26
Shares of Neogen Chemicals Ltd ended at ₹2,208.00, down by ₹1.85, or 0.084%, on the BSE.
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