Neogen Ionics to acquire undertaking from Neogen Chemicals for ₹245 Crore

Neogen Chemicals Limited announced that its wholly-owned subsidiary, Neogen Ionics Limited (NIL), and step-down wholly-owned subsidiary, Neogen Morita New Materials Limited (NML), have approved the execution of a Business Transfer Agreement (BTA). This agreement is for the sale and transfer of NIL's undertaking/assets to NML on a going concern basis for a lump sum consideration of ₹245 Crore. The transaction is subject to the approval of NIL's shareholders and necessary regulatory approvals. Shareholders of NIL have already granted their approvals in a meeting held on August 31, 2026.

The transferred undertaking contributed Nil revenue from operations for the year ended March 31, 2026, but had a net worth of ₹155.52 Crore as of March 31, 2026, representing 19.05% of the Company's consolidated net worth and 57.36% of NIL's consolidated net worth.

The BTA is expected to be executed within a week, with the sale completion anticipated on or before March 31, 2027. The consideration of ₹245 Crore will also be received by this date. The transaction is considered a related party transaction as it occurs between subsidiaries but is conducted at an arm's length and is exempted under Regulation 23 of the Listing Regulations and Section 188 of the Companies Act, 2013. Approvals under Section 180 of the Companies Act, 2013 have been obtained.

NIL, incorporated on March 29, 2023, is engaged in manufacturing chemicals, including battery materials and electrolyte salts, with a turnover of ₹35.97 Crore as of March 31, 2026. NML, incorporated on July 30, 2025, focuses on manufacturing electrolyte salts like LiPF6 and NaPF6, with a turnover of Nil as of March 31, 2026.

The rationale behind this transfer is Neogen's strategic initiative to consolidate its Electrolyte Salt (LiPF6) businesses under NML. This move aims to streamline operations and potentially enhance efficiency within its specialized chemical segments.