TANFAC raises INR 250 Crore through QIP to accelerate Strategic Growth

TANFAC Industries Limited (BSE: 506854) one of India's leading fluorine chemical manufacturers, has successfully raised ₹250 crores through a Qualified Institutional Placement (QIP), marking the Company's first equity capital raise in over three decades, The QIP witnessed a strong and diverse participation from marquee global and domestic institutional investors which includes Motilal Oswal (Mutual Fund & AIF), Malabar Investments, 360One, Niveshaay Funds and Bengal Finance and Investment (Lucky Group), among others. This reflects strong institutional confidence in our company's medium to long-term potential despite a challenging short-term macroeconomic environment.

The issue was launched on 23 June 2026 and closed on 25 June 2026 with the issue price of Rs 1985.83 per equity share, representing a 5% discount to the floor price of Rs 2090.34 determined in accordance with Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The proposed investment marks a significant step in TANFAC's strategy to strengthen its presence in the high-value refrigerant gas segment and expand its portfolio of value-added fluorochemical products.

Commenting on the fund raise, Mr. Afzal Malkani, Managing Director said: The successful completion of the QIP marks an important milestone in TANFAC's growth journey and reflects the strong confidence reposed by institutional investors in the Company's long-term strategy and growth prospects. The proceeds of the QIP will primarily be utilized towards financing the project cost for the establishment of the proposed HFC-32 refrigerant gas manufacturing plant, expansion of downstream fluorinated chemical capacities, and for general corporate purposes.

This investment is backed by strong demand visibility, as the company has already secured three consecutive long-term supplier arrangements with leading global customers which includes a contract with one of India's leading air-conditioning and commercial refrigeration company for indefinite period with an estimated value of around Rs 61 crores. The company has signed a contract of 7500 MT with Japanese customer for 7 years with an estimated value of Rs 2,362 crores. Moreover, it has also entered into MOU to supply 5000 MT per annum with a large multinational company for 5 years with an estimated value of Rs 1250 crores. These contracts aggregating to approximately Rs 3,612 crores over a period of 5-7 years.

Simultaneously, investments in backward integration through expanded hydrofluoric acid (HF) and sulphuric acid capacities are expected to strengthen raw material security, improve cost competitiveness and enhance operating margins.

The Book Running Lead Managers (BRLMs) to the QIP issue were Motilal Oswal Investment Advisors Limited and Emkay Global Financial Services Limited. Shardul Amarchand Mangaldas & Co. acted as the legal counsel to the Company, while Trilegal acted as the legal counsel to the Lead Managers.

Source : Equity Bulls

Keywords

TANFACIndustries FundRaising QIP StrategicGrowth FluoroChemicals