Thirumalai Chemicals to Consider Preferential Issue Fundraising on June 19
By Shishta Dutta | Published at: Jun 17, 2025 10:20 AM IST
Mumbai, June 17: Thirumalai Chemicals Ltd (NSE: TIRUMALCHM, ISIN: INE338A01024) has announced that its Board of Directors will convene on June 19, 2025, to discuss and potentially approve a proposal for raising funds through a preferential issue. This comes on the heels of a reported strong financial turnaround for the company in Q4 FY25.
A preferential issue is a method where a company allocates new shares to a select group of investors, such as promoters, institutional investors, or strategic partners, rather than through a public offering. This approach often allows for faster capital raising and can bring strategic value to the company.
Q4 FY25: Sharp Recovery in Profitability
While the company has indicated a “strong financial turnaround” in Q4 FY25, recent reports on its Q4 results from May 17, 2025, show a consolidated net loss of ₹14.06 crore for the quarter.
| Particulars | Q4 FY25 (Audited) | Q3 FY25 (Un-Audited) |
|---|---|---|
| Total Income | ₹59,467.00 lakh | ₹50,354.00 lakh |
| Profit Before Tax | ₹4,502.00 lakh | ₹(1,172.00) lakh |
| Net Profit / Loss | ₹3,751.00 lakh | ₹(845.00) lakh |
| Earnings Per Share | ₹3.66 | ₹(0.83) |
Another audited version for the same Q4 reports slightly lower income and a loss:
- Income: ₹53,084.00 lakh
- Net Loss: ₹1,406.00 lakh
- EPS: ₹(1.37)
This dual filing may reflect revised estimates or segmental disclosures and will be clarified in the board meeting.
FY25 Performance Overview
The company saw fluctuating profitability throughout FY25. Key quarterly metrics:
| Quarter Ended | Total Income (₹ lakh) | Net Profit / (Loss) (₹ lakh) | EPS (₹) |
|---|---|---|---|
| Mar 2025 | 59,467.00 | 3,751.00 | 3.66 |
| Dec 2024 | 50,354.00 | (845.00) | (0.83) |
| Sep 2024 | 54,772.00 | 2,500.75 | 2.44 |
| Jun 2024 | 53,734.00 | 2,814.00 | 2.75 |
Strategic Significance of Fundraising
The upcoming preferential issue signals a strategic capital infusion likely aimed at growth projects or balance sheet strengthening. Given their “strong financial turnaround in Q4 FY25,” the company might be looking to invest in new projects, expand production capacity, or acquire new technologies to capitalise on market opportunities in the chemical sector. Furthermore, the company may use the funds to reduce existing debt, improve financial ratios such as the debt-to-equity ratio, and enhance its overall financial stability, making the company more attractive to lenders and investors in the long run.
Further details, including pricing, investor identity, and regulatory compliance under SEBI ICDR Regulations, are expected post Board approval.
Share Price Effect
At the end of the June 16th market session, the shares of Thirumalai Chemicals closed 6.07% or ₹16.86 higher at ₹294.76. The shares made an intraday high of ₹299.15 and a low of ₹278.41. It remains to be seen at what price the shares open today and perform until market closure.
About the Company
Thirumalai Chemicals Ltd is a leading Indian manufacturer of phthalic anhydride, food acids, and other industrial chemicals. The company is listed on NSE and BSE and operates with a global distribution footprint.
REF: https://nsearchives.nseindia.com/corporate/xbrl/PRIOR_INTIMATION_58037_1467343_16062025095232_WEB.xml
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