Shares of Neogen Chemicals Ltd rose 3.75% to hit a day’s high of Rs 1,472.90 on 1st September after the company announced that the board of its wholly-owned subsidiary, Neogen Ionics, has approved a joint venture agreement (JVA) with Morita Chemicals Industries Co. Ltd.

Neogen Chemicals stated that the joint venture aims to combine the technological and manufacturing strengths of both companies. They intend to capitalise on the rapidly growing lithium-ion battery market.

Both firms will invest in Neogen Morita New Materials Ltd. (NML), a subsidiary of Neogen Ionics. Under the deal signed on 31st August, Neogen Ionics will hold at least 80% of NML. Meanwhile, Morita Chemicals will own up to 20%.

NML will manufacture, develop, and sell solid LiPF6 salt. This is a crucial ingredient used to make electrolyte for lithium-ion batteries. They will also deal with other related materials and services.

Separately, in July, Neogen Chemicals’ board approved raising to Rs 200 crore through secured, listed, redeemable non-convertible debentures (NCDs). These will be on a private placement basis. The NCDs will have a 36-month tenure, with interest payable monthly.

At 10:32 AM, the shares of Neogen Chemicals were trading 3.70% higher at Rs 1,456.20 on NSE.

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