Thirumalai Chemicals Limited (TCL) has received overwhelming shareholder support for its plan to raise ₹56.14 crore through a preferential share issue to promoter group entities. The special resolution, approved via postal ballot, authorizes the company to issue 18,96,614 equity shares at ₹296 per share.

Shareholder Approval Details

• Votes in Favor: 4,45,95,980 (99.99% of valid votes)
• Total Valid Votes: 4,45,99,144
• Allotment Timeline: To be completed within 15 days

Financial Implications

The preferential share issue comes at a time when TCL's balance sheet shows significant growth and strategic investments. Let's look at some key financial metrics:

The company's strategic focus on investments is evident, with a 75.28% increase in the investment portfolio over the past year. This preferential issue may further strengthen the company's capital base, potentially supporting future growth initiatives.

Balance Sheet Analysis

TCL's balance sheet reveals some interesting trends:

1. Asset Growth: Total assets have grown by 23.59% year-over-year, indicating expansion.
2. Investment Strategy: The significant increase in investments suggests a strategic shift towards long-term growth opportunities.
3. Equity Position: Shareholders' capital has increased by 12.47%, reflecting the company's growing equity base.

Potential Implications

The preferential share issue to promoter group entities could signal:

1. Confidence in the company's future prospects by the promoter group
2. Alignment of promoter interests with the company's growth strategy
3. Potential for accelerated growth or expansion plans

As Thirumalai Chemicals moves forward with this capital raise, investors will be keen to see how the additional funds are utilized to drive growth and enhance shareholder value.

Note: All financial figures are in crore rupees.

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:

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:

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.