Stocks

Neogen Chem promoters divest 5.6% stake to marquee investors

Chennai | Updated on June 04, 2020 Published on June 04, 2020

Marquee investors Malabar Investments picked up a part of the promoter’s stake in Neogen Chemicals from the open market on June 3. In a disclosure to the stock exchanges, Neogen Chemicals, manufacturers of bromine-based and lithium-based specialty chemicals, said promoters divested 11.26 lakh shares on June 3 through open market at around ₹473.30 a share. A significant portion of this sale (10.47 lakh shares) was bought by Malabar India Fund and Malabar Value Fund.

On Thursday, the stock closed at ₹469.6, up 2.06 per cent, on the BSE.

The promoters remain firmly committed to the business and its future. Following the transactions, the aggregate stake of promoters/promoter group fell to 64.32 per cent from 70.01 per cent of the company’s equity share capital, Neogen Chemicals said in the statement.

“With this transaction, another high-quality institutional shareholder has been added in the company’s ownership, re-affirming the confidence already displayed by several existing marquee investors in its long-term growth prospects,” the statement added.

Neogen came out with a ₹132-crore IPO in April 2019 at an issue price of ₹215. Since then the company’s stock hit a 52-week high of ₹554.8 and low ₹290.6 on the BSE.

The company reported a 28 per cent rise in revenues to ₹306.12 crore and 37 per cent jump in profit after tax to ₹28.66 crore for FY20.

Malabar Investments is a leading India-focussed investment firm founded in 2008 with the backing of reputed institutional value investors from the US and Asia.

Published on June 04, 2020
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