According to sources speaking to CNBC-TV18, Thirumalai Chemicals is planning to raise ₹400-500 crore through a combination of preferential issue and asset monetization. The fundraising strategy includes raising ₹200-250 crore through a preferential issue and an additional ₹100-150 crore through the sale of its investment in Optimistic Organic Sdn. Bhd. (OOSB). The proposed fundraising, if finalised, would help the company support its ongoing investment cycle while also unlocking value from select non-core investments.
As reported by CNBC-TV18, Thirumalai Chemicals is considering monetizing its stake in Ultramarine & Pigments, where the company currently holds a 14.38% stake. The potential asset monetization comes as the company is in the middle of a major investment cycle, with management stating they are "working on raising capital through the most effective means." The company 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.
According to the reports, OOSB is a wholly-owned, step-down subsidiary of Thirumalai Chemicals engaged in the manufacture of Maleic Anhydride. The company states that OOSB caters to Asian markets and is strategically located between Taiwan and Italy. The proposed fundraising would therefore help the company support its ongoing investment cycle while also unlocking value from select non-core investments.
