Stallion India Fluorochemicals Limited has signed a strategic Memorandum of Understanding with the Government of Rajasthan to establish a Hydrofluoroolefin (HFO) manufacturing plant, marking a significant milestone in the company's expansion into advanced refrigerant solutions. The facility will be located at Bhilwara (Hurda), Rajasthan, as part of the company's planned capacity expansion program.

Investment and Timeline Details

The comprehensive development plan outlines substantial investment and clear implementation timelines for the new manufacturing facility.

Strategic Expansion Framework

The HFO manufacturing plant represents a key component of Stallion India Fluorochemicals Limited's phased expansion strategy. The company is executing its growth plans in a calibrated manner, with the R32 project targeted for commissioning by October 2026, followed by the initiation of the HFO manufacturing facility. This sequential approach aligns with the company's internal growth plans and long-term turnover objectives.

Management Perspective

Mr. Shazad Rustomji, Managing Director & CEO of Stallion India Fluorochemicals Limited, emphasized the strategic importance of this development. He highlighted that HFOs represent the next phase of low-global-warming-potential refrigerants, and the proposed facility will significantly strengthen the company's product portfolio and long-term competitiveness. The management remains confident of achieving the targeted 30-35% revenue CAGR over the next three years through these strategic initiatives.

Company Background and Capabilities

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:

• Maharashtra: Khalapur and Panvel facilities
• Rajasthan: Ghiloth facility
• Haryana: Manesar facility
• Upcoming locations: Mambattu (near Srivity, A.P.) and additional Khalapur facility

The company serves diverse industries including air conditioning, refrigeration, fire-fighting, semiconductor manufacturing, pharmaceuticals, automotive, and glass production. Stallion India Fluorochemicals Limited's unique positioning focuses on a comprehensive mix of Refrigerant Gases, Specialities, Semiconductor Gases, and High Purity Industrial gases, along with gas blending capabilities.

Product Portfolio and Market Position

The company provides tailored gas solutions across multiple product categories, including Hydrocarbons (HC), Hydrofluorocarbons (HFCs), and HydrofluoroOlefins (HFOs). This diversified approach differentiates Stallion India Fluorochemicals Limited from competitors who primarily focus on either Industrial Gases or Refrigerants exclusively. The new HFO facility will further enhance this competitive advantage while supporting India's vision of self-reliance in specialty chemicals and fluorochemicals.

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.