Tanfac Industries shares experienced a notable surge of nearly 5% on January 9, 2026, reaching an intraday high of ₹4,740 following the board's approval of strategic initiatives including a stock split and major capacity expansion. The stock eventually closed at ₹4,401.65 on BSE, down 3% from the previous closing price of ₹4,518.10, with a market capitalization of ₹4,390.60 crores.

Board Approvals and Strategic Initiatives

The board of Tanfac Industries Limited approved three key strategic measures during its meeting on January 9, 2026, aimed at enhancing liquidity and supporting long-term growth.

Stock Split and Liquidity Enhancement

The board approved a stock split proposal in a 1:2 ratio, where each equity share with a face value of ₹10 will be subdivided into two equity shares with a face value of ₹5 each. This initiative is subject to shareholder and regulatory approvals, with the record date to be announced following necessary clearances.

Major Capacity Expansion Project

The company has sanctioned the establishment of a new downstream fluorinated chemicals manufacturing facility with an installed capacity of 20,000 tonnes per annum at its existing Cuddalore plant. The project involves an estimated investment of ₹495 crores, to be funded through a combination of equity and debt financing. The facility is expected to be commissioned by November 2026 and aligns with the company's strategy to deepen its downstream product portfolio while supporting India's environmental objectives.

Fundraising Plans

The board approved raising up to ₹500 crores through equity share issuance in one or more tranches via Qualified Institutional Placement or other permitted routes, subject to shareholder and regulatory approvals. This fundraising initiative will support the company's growth plans and strengthen its financial position.

Financial Performance

Tanfac Industries demonstrated strong revenue growth in recent quarters, though profitability faced some pressure.

Company Profile and Market Position

Tanfac Industries Limited operates as a joint venture between Anupam Rasayan India Limited and the Tamil Nadu Industrial Development Corporation. The company is a leading producer of hydrofluoric acid and its derivatives in the Indian chemical sector. Its comprehensive product portfolio includes:

• Anhydrous hydrofluoric acid
• Aluminium fluoride
• Sulphuric acid and oleum
• Potassium fluoride and potassium bifluoride
• Boron trifluoride complexes
• Calcium sulphate
• Various specialty chemicals

The stock has delivered positive returns of approximately 53% over the past year and gained nearly 14% in the last month, reflecting strong investor confidence in the company's growth trajectory and strategic positioning in the specialty chemicals sector.

TANFAC Industries Limited's Board of Directors approved a comprehensive set of strategic initiatives on January 09, 2026, marking significant expansion and restructuring plans for the chemical manufacturing company. The decisions encompass major capital investments, fund raising activities, corporate restructuring, and leadership changes that position the company for enhanced growth.

Major Manufacturing Facility Expansion

The Board approved establishment of a new downstream fluorinated chemicals manufacturing facility representing a substantial investment in the company's production capabilities. The project details are outlined below:

The facility will be established at the company's existing manufacturing location in Cuddalore and will be funded through a combination of equity and debt. This project forms part of TANFAC Industries' long-term growth strategy to expand its downstream product portfolio while supporting India's environmental commitments and creating long-term stakeholder value.

Fund Raising Through QIP

The Board approved raising funds aggregating to ₹500.00 crores through Qualified Institutional Placement (QIP) or other permitted modes. The fund raising will be conducted in one or more tranches, subject to shareholder and regulatory approvals. The equity shares will be issued in accordance with applicable law at prices permissible under current regulations.

Share Subdivision Initiative

TANFAC Industries approved subdivision of equity shares to enhance liquidity and encourage participation from small investors. The subdivision details are presented below:

The subdivision ratio is 1:2, where each existing equity share of ₹10.00 face value will be subdivided into two equity shares of ₹5.00 face value each. The initiative aims to make equity shares more affordable for small investors and enhance overall market liquidity. The record date will be decided after obtaining shareholder approval.

Leadership and Management Changes

The Board approved significant changes in the company's leadership structure. Mr. Afzal Harunbhai Malkani's designation was changed from Non-executive, Non-Independent Director to Managing Director for a five-year term from January 09, 2026 to January 08, 2031, subject to shareholder approval. Mr. Malkani brings over 25 years of experience in finance, corporate finance, capital markets, and regulatory compliance, having previously served as Chief Financial Officer at Anupam Rasayan India Limited and Zen Technologies Limited.

Mrs. Sandhya Venugopal Sharma was appointed as Chairperson and Additional Director in the Nominee Director, Non-independent category with effect from January 09, 2026. She is a 1995 batch IAS officer of Tamil Nadu cadre with extensive administrative experience, including central deputation with the Department of Space as Joint Secretary and Additional Secretary.

Simultaneously, Mrs. Mariam Pallavi Baldev resigned from her position as Non-executive, Non-Independent Director effective January 09, 2026. The Board also approved consequential amendments to the Capital Clause V of the Memorandum of Association due to the share subdivision, subject to shareholder approval.

Regulatory Compliance and Timeline

All approved initiatives are subject to necessary shareholder approvals and statutory/regulatory clearances as required under SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The share subdivision is expected to be completed within three months from shareholder approval, while the manufacturing facility project timeline extends to November 2026 for commissioning.