CNBC-TV18 Exclusive | Thirumalai Chemicals eyes ₹400–500 crore fundraise, say sources

Thirumalai Chemicals is looking to raise ₹400–500 crore through a combination of a preferential issue and monetisation of non-core assets, sources tell CNBC-TV18.

Sources tell CNBC-TV18 that the company may raise ₹200–250 crore through a preferential issue, while another ₹100–150 crore could be raised through the sale of its investment in Optimistic Organic Sdn. Bhd. (OOSB).

OOSB is a wholly-owned, step-down subsidiary of Thirumalai Chemicals and is engaged in the manufacture of Maleic Anhydride. The company says OOSB caters to Asian markets and is strategically located between Taiwan and Italy.

Thirumalai Chemicals is also considering monetising its stake in Ultramarine & Pigments, sources say.

The company currently holds a 14.38% stake in Ultramarine & Pigments, according to the sources. The potential asset monetisation comes as Thirumalai Chemicals is in the middle of a major investment cycle.

Thirumalai Chemicals to CNBC-TV18 that the company said it is “in the middle of a major investment cycle” and is “working on raising capital through the most effective means.”

Thirumalai Chemicals has been expanding its chemical manufacturing footprint, including through its wholly-owned subsidiary TCL Intermediates, which was established to strengthen its presence in domestic chemical markets.

The proposed fundraising, if finalised, would therefore help the company support its ongoing investment cycle while also unlocking value from select non-core investments.

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(Edited by : Juviraj Anchil)