Thirumalai Chemicals Limited, a prominent player in the chemical industry, has successfully raised ₹450.62 crore through a preferential share allotment. The company's Fund Raising Committee approved the issuance of 1,62,68,040 equity shares at ₹277 per share.

Key Details of the Share Allotment

• Issue Price: ₹277 per share (including a premium of ₹276)
• Number of Shares: 1,62,68,040 equity shares
• Total Amount Raised: ₹450.62 crore
• Number of Investors: 21, including mutual funds and individual investors

Impact on Share Capital

The preferential allotment has resulted in a significant increase in the company's paid-up share capital:

Notable Investors

The preferential issue attracted a diverse group of investors, including:

1. Mutual Funds:

   • Motilal Oswal Small Cap Fund (30,68,592 shares)
   • Motilal Oswal Multi Cap Fund (27,97,833 shares)
   • Bandhan funds (various schemes)

2. Alternative Investment Funds:

   • 360 One Equity Opportunity Fund
   • Turnaround Opportunity Fund

3. Corporate Entities:

   • One Up Financial Consultants Private Limited
   • Oracular Advisory Private Limited
   • Sound Securities Private Limited

4. Individual Investors:

   • Sandhya Nilesh Shah (19,85,559 shares)
   • Vinod Maganlal Shah (5,00,000 shares)
   • Other high-net-worth individuals

Regulatory Compliance

The company received in-principle approval from stock exchanges for the preferential issue. The newly issued shares will rank pari-passu with the existing equity shares of the company.

Company Statement

Aditya Sharma, Company Secretary of Thirumalai Chemicals Limited, confirmed the successful completion of the preferential allotment in a filing to the stock exchanges. The Fund Raising Committee meeting for the allotment commenced at 3:00 p.m. and concluded at 3:45 p.m.

This significant capital raise is expected to strengthen Thirumalai Chemicals' financial position and support its growth initiatives in the chemical sector.

Thirumalai Chemicals , a leading specialty chemicals manufacturer, reported a significant decline in its financial performance for the first quarter, as global headwinds and operational challenges impacted its bottom line.

Financial Performance

The company's consolidated total income declined by 19% year-over-year to ₹452.00 crore in Q1, down from ₹558.00 crore in the same period last year. The consolidated EBITDA turned negative at ₹25.00 crore, compared to a positive EBITDA of ₹34.00 crore in Q1 of the previous year. Consequently, Thirumalai Chemicals reported a net loss of ₹60.00 crore, a stark contrast to the ₹5.00 crore profit recorded in the corresponding quarter of the previous year.

NM: Not Meaningful

Operational Challenges

The company faced several operational challenges during the quarter:

1. Global Headwinds: Soft demand, inflation in energy and raw materials, excess capacity, and geopolitical trade frictions affected the global chemical industry.

2. Lower Spreads: The company experienced lower spreads across its product portfolio, particularly in Phthalic Anhydride (PAn).

3. Dahej Plant Ramp-up: The new facility at Dahej operated at low utilization during its ramp-up phase, impacting overall performance.

4. Malaysia Operations: The company's subsidiary, Optimistic Organic Sdn. Bhd. (OOSB) in Malaysia, incurred one-time retrenchment costs due to the shutdown of its Maleic Anhydride (MAn) reactor.

5. Increased Interest Expenses: The standalone financials bore the full burden of interest costs on new borrowings for the USA project.

Operational Highlights

Despite the challenges, Thirumalai Chemicals achieved some operational milestones:

• Completed re-catalysation of Phthalic Anhydride reactor P144.
• Achieved highest quarterly Fumaric Acid production at its Ranipet plant.
• The Dahej plant reached 75%+ average throughput in June, with a production capacity of 175 TPD.
• Reduced specific steam consumption by over 10% through equipment overhaul and efficiency improvements.

Future Outlook

The company remains optimistic about its future prospects:

• Expects improved utilization at the Dahej plant to 85-90% from Q2 onwards.
• Focuses on value-added downstream Esters plant in Malaysia for better unit economics.
• On track to launch its USA project by December, which is expected to strengthen its global position in Maleic Anhydride and food ingredients.

Mr. R. Parthasarathy, Chairman & Managing Director of Thirumalai Chemicals, commented on the results, stating, "While the quarter presented significant challenges, we remain committed to our long-term strategy of expanding our global footprint and focusing on high-value specialty chemicals. The ongoing ramp-up of our Dahej facility and the progress on our USA project are crucial steps in this direction."

As Thirumalai Chemicals navigates through these challenging times, the company's focus on operational efficiency, capacity utilization, and strategic expansion will be key to its recovery and future growth in the specialty chemicals sector.