Tamilnadu Coke & Power Ltd (TNCPL) files DRHP for IPO, aims for ferrosilicon Unit and solar power expansion

MUMBAI, 26 DECEMBER, 2023 (PNT): Tamilnadu Coke & Power Limited (TNCPL), a prominent Low Ash Metallurgical (“LAM”) Coke manufacturer, has officially filed its Draft Red Herring Prospectus (DRHP) with the NSE Emerge. The proposed offering consists of a fresh issuance of 64,14,000 equity shares, each with a face value of Rs. 10. Beeline Capital Advisors Private Limited has been appointed as the Book Running Lead Manager, while Link Intime India Private Limited will serve as the Registrar to the issue.

Headquartered in Thandalacherry village, Gummidipoondi Taluk, Tamil Nadu, TNCPL specializes in producing LAM Coke through the conversion of coking coal, coal sales, power generation from waste heat recovery, and electricity sales. Its LAM Coke product portfolio includes Lumpy Coke, Blast Furnace Coke, Nut Coke, and Coke Fines.

The company operates a LAM Coke Oven plant in Thandalacherry, Tamil Nadu, with two batteries comprising 65 ovens and a total capacity of 1,20,000 TPA. Additionally, TNCPL owns a power generation unit with a 10 MW installed capacity, selling electricity through the Indian Energy Exchange.

The DRHP outlines the allocation of proceeds from the IPO for various purposes, including establishing a new Ferrosilicon manufacturing unit, setting up a solar power plant, acquiring additional land, and general corporate purposes. TNCPL plans to utilize Rs. 39.60 crore to establish a 2×5 Mega Volt-Amps (MVA) Ferrosilicon plant, Rs. 5 crore for land acquisition, and Rs. 8.63 crore for a new solar power plant.

Mr. Ayaan Ahuja, Chairman & Managing Director of Tamilnadu Coke & Power Limited, emphasized the company’s focus on operational efficiency in metallurgical coke manufacturing and power generation. The IPO proceeds will facilitate expansion into new markets and product segments, including the establishment of a Ferrosilicon facility and a solar power plant.

TNCPL, promoted by Tamilnadu Global Trading LLP and Mr. Ayaan Ahuja, acquired land and assets from Basudha Udyog Private Limited in 2017-18. The strategic location of its manufacturing unit and power plant in Thandalacherry provides a transportation advantage, serving customers in Maharashtra, Karnataka, Andhra Pradesh, and Chhattisgarh.

In FY2022-23, TNCPL reported a revenue of Rs. 51.60 crore, up from Rs. 46.11 crore in FY2021-22. The company achieved a profit (PAT) of Rs. 20.83 crore in FY2022-23, compared to Rs. 17.47 crore in the previous fiscal year. The IPO is anticipated to support TNCPL’s growth initiatives, including the entry into Ferrosilicon manufacturing and expansion of its solar power generation Capabilities.Ends