Thirumalai Chemicals Completes ₹56.14 Crore Preferential Share Allotment

Thirumalai Chemicals Limited has successfully completed its preferential share issue, allotting 18,96,614 equity shares at ₹296 per share to promoter group entities. The Fund Raising Committee of the Board approved the allotment on December 23, 2025, raising a total of ₹56.14 crore as previously planned.

Share Allotment Details

The company has completed the allotment process following overwhelming shareholder approval received earlier through postal ballot. The allotment details are summarized below:

Parameter:	Details
Total Shares Allotted:	18,96,614 equity shares
Issue Price:	₹296 per share (including premium of ₹295)
Face Value:	₹1 per share
Total Amount Raised:	₹56,13,97,744
Stock Exchange Approval:	Received on December 16, 2025

Shareholder Approval Background

The preferential share issue had received exceptional shareholder support through postal ballot:

Voting Details:	Results
Votes in Favor:	4,45,95,980 (99.99% of valid votes)
Total Valid Votes:	4,45,99,144
Resolution Type:	Special Resolution

Major Allottees

The shares have been allocated among various promoter group entities, with the largest allocations going to:

Allottee:	Shares Allotted	Amount (₹)
Ultramarine and Pigments Ltd:	15,20,270	4,49,99,920.00
Parthasarathy Rangaswamy jointly with Bhooma Parthasarathy:	1,21,621	3,59,99,816.00
Bhooma Parthasarathy jointly with Parthasarathy Rangaswamy:	64,189	1,89,99,944.00

Impact on Share Capital

The allotment has resulted in an increase in the company's issued, subscribed, and paid-up share capital. The newly allotted equity shares rank pari-passu in all respects with the existing equity shares of the company.

Financial Position Context

This capital raise comes at a time when TCL's balance sheet shows robust growth:

Financial Metric:	Current Year	Previous Year	Growth
Total Assets:	₹2,141.40 crore	₹1,732.60 crore	+23.59%
Investments:	₹1,150.90 crore	₹656.60 crore	+75.28%
Shareholders' Capital:	₹1,106.70 crore	₹984.00 crore	+12.47%

The successful completion of this preferential issue strengthens the company's capital base and demonstrates strong promoter confidence in the company's growth prospects. The additional funds are expected to support the company's strategic initiatives and expansion plans.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.33%	-6.06%	-1.56%	-23.95%	-32.99%	+125.89%

Thirumalai Chemicals Limited has reported significant progress in utilizing funds from its recent preferential issue, according to the latest Monitoring Agency Report for the quarter ended September 30, 2025. The company has deployed Rs 311.11 crore out of the total Rs 450.63 crore raised, with no deviations from the stated objectives.

Capital Expenditure and Operational Payments

The company has allocated Rs 211.94 crore towards capital expenditure for its US subsidiary, TCL Specialties LLC. This investment aligns with Thirumalai Chemicals' strategy to expand its presence in the United States market.

Additionally, Rs 99.17 crore has been utilized for operational payments, including:

Purpose	Amount (Rs in crore)
Raw material purchase from Reliance Industries Ltd.	83.00
Raw material purchase from Total Energies Trading Asia Pte Ltd.	15.00
Sales Invoice Discounting facility repayment	1.17

Fund Utilization and Monitoring

CRISIL Ratings, acting as the Monitoring Agency, has confirmed that there are no deviations from the stated objectives of the preferential issue. The remaining Rs 139.52 crore is currently held across various bank accounts of the company and its subsidiaries:

Entity	Bank	Amount (Rs in crore)
Thirumalai Chemicals Ltd.	IDFC First Bank (Current Account)	10.83
Thirumalai Chemicals Ltd.	IDFC First Bank (Monitoring Account)	13.10
TCL Global B.V. (Subsidiary)	HSBC Bank	107.93
TCL Specialties LLC (Step-down Subsidiary)	The Huntington National Bank	7.66

Project Timeline and Utilization

The company aims to complete the investment in TCL Specialties LLC by December 2025, as originally planned. However, there is a slight delay in utilizing funds for general corporate purposes, which was initially scheduled for October 2025 but is now expected to be completed by November 2025.

Additional Developments

In a separate disclosure, Thirumalai Chemicals has received an intimation of tax ascertained as being payable under Section 73 of the CGST Act, 2017. The Assistant Commissioner (ST), Ranipet, Tamil Nadu, has raised a demand of Rs 47.53 crore for excess Input Tax Credit (ITC) availed based on GSTR 9 scrutiny.

The company believes that the tax demand is erroneous and not sustainable. Thirumalai Chemicals plans to pursue legal remedies and expects any potential financial implications to be insignificant, with no material impact on its financial position.

This report demonstrates Thirumalai Chemicals' commitment to transparent fund utilization and strategic expansion, while also highlighting its proactive approach to addressing regulatory challenges.