Shares of Neogen Chemicals soared nearly 4% in the morning hours on March 6 after the company announced plans to acquire a 100% stake in BuLi Chemicals India from Livent US Corporation for Rs 250 crore.
Shares of Neogen Chemicals were trading at Rs 1,340.50 on the National Stock Exchange at 10:50 am, up 3.91%.
BuLi Chemicals possesses key technologies for manufacturing N Butyl Lithium and other organolithium products using lithium metal, an essential reagent in lithiation reactions for manufacturing complex pharmaceutical and agrochemical intermediates.
In addition, BuLi Chemicals supplies N Butyl Lithium to several leading pharmaceutical and agrochemical companies in India and globally.
According to Neogen’s broker ICICDirect, as the inorganic (lithium) segment accounts for 20-25% of Neogen’s total revenue, the acquisition of BuLi Chemicals will expand its product portfolio and enhance its advanced intermediates and clinical supply management by offering organolithium derivatives Manufacturing operations currently in the pharmaceutical and agrochemical industries.
ICICDirect sees Neogen as having the potential to become one of the top players in lithium chemistry due to its capex announcements on battery chemicals such as salts and electrolytes.