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Neogen Chemical's subsidiary Neogen Morita New Materials (NML) approved issuance

ICICIdirect Research 28 Sep 2026 DISCLAIMER

News: Neogen Chemical's subsidiary Neogen Morita New Materials (NML) approved issuance of 7.2 lakh equity shares at ₹1,066.66/share, aggregating to ₹76.8 crore, on a preferential basis to Morita Investment, a wholly owned subsidiary of Morita Chemicals Industries.

View: NML focuses on developing advanced lithium‑ion battery materials, especially electrolyte salts—a key input that drives battery performance and safety. This work supports fast‑growing markets like EVs, energy storage, and other next‑generation energy technologies. As per the August 2025 agreement, Neogen and Morita are expected to hold 80% and 20% stakes, respectively. Thus, we expect another ~₹ 90-95 crore infusion in NML in due course. This is one of the series of cash flows to deleverage the balance sheet.

Impact: Positive

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