Neogen Chemicals shares touched a day high of ₹2,411 on 11 September, recovering sharply after an early slide tied to its QIP pricing.

The volatility followed news that the company’s fund-raising committee had set the floor price for its Qualified Institutions Placement at ₹2,189.73 per share.

That price works out to roughly an 8% discount to the previous closing price, which is typical for how QIPs are structured to attract institutional buyers.

Neogen Chemicals is looking to raise up to ₹600 crore through this route. The company has set 10 September as the relevant date for pricing the issue, and it may offer a further discount of up to 5% on the floor price, as allowed under SEBI rules.

This fundraise isn’t a new decision. The board had already cleared it back on 24 July, and shareholders gave their approval through a special resolution on 21 August.

What’s happening now is simply the final pricing stage before the shares are actually issued to institutional investors. Once raised, the money is earmarked for two things.

A large part will go toward funding the company’s battery materials projects at Dahej and Pakhajan, while the rest will help pay down existing debt.

It helps to look at this dip against the stock’s longer run. Neogen touched a 52-week high of ₹2,483 back on 18 August, and even after today’s swings, the stock remains up close to 94% for the year so far.

By 14:10 pm on 11 September, Neogen Chemicals was trading around ₹2,393, up 0.19% for the day, well off its earlier lows and close to its intraday high.

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