Stallion India Fluorochemicals Limited has announced that its proposed greenfield R-32 manufacturing facility at Bhilwara, Rajasthan will benefit from comprehensive incentives under the Rajasthan Investment Promotion Scheme (RIPS) 2024. The company had previously signed a strategic Memorandum of Understanding with the Government of Rajasthan for both R-32 and HFO manufacturing plants, with combined investments marking significant milestones in advanced refrigerant solutions.

RIPS 2024 Incentive Framework

Under RIPS 2024, Stallion's projects qualify under the Manufacturing category and meet criteria for Start-up classification within the prescribed startup period, enabling access to comprehensive fiscal incentives and exemptions.

Investment and Project Details

The development plan encompasses both R-32 and HFO manufacturing facilities with clear implementation timelines and substantial investment commitments.

Management Commentary on Policy Benefits

Mr. Shazad Rustomji, Managing Director & CEO, emphasized the strategic importance of RIPS 2024 benefits. He highlighted that the policy support significantly enhances project viability, cash flow profile and long-term return visibility. The comprehensive incentive framework covering capital subsidy, investment subsidy, turnover-linked incentives, interest subvention and employment-linked benefits will greatly increase project viability, shorten the Return on Capital invested and boost PAT once full production is achieved.

The management noted that both the R-32 and HFO plants will benefit from the same subsidy structure for eligible fixed capital investment and other eligible subsidies under RIPS 2024. This strong policy support aligns with the State's focus on green growth, export promotion and high-technology manufacturing, matching Stallion's strategy of building globally competitive, environmentally responsible and technology-led manufacturing assets.

Strategic Expansion and Market Position

Incorporated in 2002, Stallion India Fluorochemicals Limited operates as a specialized leader in the refrigerants and industrial gases sector with over three decades of experience. The company maintains strategic manufacturing facilities across multiple locations including Maharashtra (Khalapur and Panvel), Rajasthan (Ghiloth), Haryana (Manesar), with upcoming facilities at Mambattu (near Sricity, A.P.) and additional Khalapur facility.

The company's unique positioning focuses on a comprehensive mix of Refrigerant Gases, Specialities, Semiconductor Gases, and High Purity Industrial gases, along with gas blending capabilities. This diversified approach differentiates Stallion from competitors who primarily focus on either Industrial Gases or Refrigerants exclusively. The Rajasthan projects represent important steps in strengthening domestic refrigerant manufacturing, supporting import substitution and creating scalable platforms for future expansion. The management remains confident of achieving the targeted 30-35% revenue CAGR over the next three years through these strategic initiatives.

Stallion India Fluorochemicals has announced a rights issue to raise capital through the issuance of shares to existing shareholders. The company plans to raise funds up to 3.64 billion rupees through this capital raising exercise.

Rights Issue Details

The rights issue has been structured with specific pricing and value parameters to provide existing shareholders with an opportunity to increase their stake in the company.

Capital Raising Strategy

The rights issue represents a significant capital raising initiative by Stallion India Fluorochemicals. By offering shares at 99 rupees per share, the company is providing existing shareholders with the opportunity to subscribe to additional shares in proportion to their current holdings. This method of fundraising allows the company to raise substantial capital while maintaining the existing ownership structure and giving current investors priority access to new shares.

Rights issues are typically undertaken by companies to fund expansion plans, reduce debt, or strengthen their balance sheet. The substantial size of this fundraising exercise, with a maximum potential of 3.64 billion rupees, indicates the company's significant capital requirements for its future business operations and growth strategies.