Epigral , a leading integrated chemical manufacturer in India, has announced plans to raise up to ₹4 billion through the issuance of bonds. This strategic move comes on the heels of the company's robust financial performance in the first quarter.

Bond Issuance Details

The company's Board of Directors has approved a proposal to raise funds up to ₹400 crore (₹4 billion) through the issuance of non-convertible debentures, bonds, and/or other debt securities. This fundraising initiative will be executed through permissible modes within the company's borrowing limits, potentially in multiple tranches or series over a period of time, subject to necessary regulatory and other approvals.

Q1 Financial Highlights

Epigral's decision to raise funds through bonds is backed by a strong financial performance in Q1:

• Revenue from operations stood at ₹606.54 crore
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reached ₹163 crore, maintaining a healthy margin of 27%
• Profit After Tax (PAT) surged to ₹160.41 crore, including a one-time tax benefit

Key Financial Metrics

Strategic Initiatives

Maulik Patel, Chairman and Managing Director of Epigral, commented on the company's performance and outlook: "We maintained our EBITDA margin of 27% on account of sustaining efficiency level and better product mix. We expect H2 to be stronger compared to H1."

The company is also progressing with its capacity expansion plans:

• CPVC Resin capacity will be increased to 1,50,000 TPA
• Epichlorohydrin capacity will be expanded to 1,00,000 TPA
• A new 19.80 MW Wind Solar Hybrid Power Plant is under development

Market Position

Epigral continues to strengthen its position in the specialty chemical business. The revenue contribution from Derivatives and Specialty business stood at 50% in Q1, with expectations of further increase.

The proposed bond issuance aligns with Epigral's strategy of sustainable growth and value creation for stakeholders. As the company moves forward with its expansion plans and focus on high-value products, this fundraising initiative is expected to provide the necessary capital to support its growth trajectory in the competitive chemical manufacturing sector.

Investors and market watchers will be keenly observing how Epigral utilizes these funds to drive its strategic initiatives and maintain its strong market position in the coming quarters.

Epigral Limited , formerly known as Meghmani Finechem Limited, has reported a significant increase in profit for the first quarter, along with plans for substantial debt fundraising.

Financial Performance

The company's unaudited standalone financial results for Q1 show a robust performance:

Despite a slight decrease in revenue, Epigral Limited has managed to significantly boost its profit after tax, which rose by 86.50% year-on-year to Rs 160.41 crore. This substantial increase in profitability is particularly noteworthy given the challenging market conditions.

Tax Benefit

The company's impressive profit growth can be attributed in part to a one-time tax benefit. Epigral has exercised the option permitted under Section 115BAA of the Income-tax Act, 1961, resulting in a one-time credit of Rs 80.87 crore recognized in the Statement of Profit and Loss towards remeasurement of deferred tax liabilities.

Debt Fundraising Plans

In a strategic move to support its growth initiatives, Epigral's Board of Directors has approved a proposal to raise funds up to Rs 400 crore. This fundraising will be executed through the issuance of non-convertible debentures, bonds, and other debt securities. The company plans to raise these funds in one or more tranches, subject to regulatory and other necessary approvals.

Renewable Energy Investment

Demonstrating its commitment to sustainable energy, Epigral has entered into agreements to invest in a wind-solar hybrid power project. The company will invest Rs 0.13 crore for a 26% equity stake in Pro-Zeal Green Power Ten Private Limited, along with Rs 21.25 crore in Optionally Convertible Debentures. As part of this agreement, Epigral has committed to purchasing a minimum of 51% of the power generated by the 19.80 MW plant for a period of 20 years.

Business Segment

Epigral Limited continues to operate primarily in the manufacturing and selling of Chloro Alkali & its Derivatives. The company's business activities fall within a single business segment, with sales substantially in the domestic market.

The financial results and strategic initiatives announced by Epigral Limited reflect the company's focus on profitability, sustainable growth, and commitment to renewable energy. As the company moves forward with its debt fundraising plans and renewable energy investments, stakeholders will be watching closely to see how these strategies impact its future performance and market position.