Tamilnadu Coke & Power Ltd Files DRHP, Unveils ₹40 Crore Plan for New Factory

Tamilnadu Coke & Power Ltd., a prominent manufacturer of low-ash metallurgical (LAM) coke, has taken a significant step by filing its Draft Red Herring Prospectus (DRHP) with the NSE Emerge.

The DRHP outlines the company's plans for an initial public offering (IPO), involving a fresh issuance of 64.14 lakh shares, each with a face value of ₹10.

The proposed allocation of IPO proceeds includes a substantial investment of ₹40 crore in a new venture—a 2x5 Mega Volt-Amps (MVA) ferrosilicon plant with an impressive production capacity of 8,000 tonnes per annum (TPA). Additionally, ₹5 crore is earmarked for the acquisition of additional land adjacent to the existing plant, and ₹8.63 crore is allocated for the establishment of a new solar power plant boasting a capacity of 1581 KWP, according to details provided in the DRHP.

Currently, Tamilnadu Coke & Power Ltd. operates a LAM Coke Oven plant at Thandalacherry, Tamil Nadu, featuring two batteries comprising 65 ovens, with a total capacity of 1,20,000 TPA. The company also possesses a power generation unit with an installed capacity of 10 MW, actively contributing to the energy sector by selling electricity to various consumers through the Indian Energy Exchange.

Ayaan Ahuja, the Chairman and Managing Director of Tamilnadu Coke & Power Ltd., shared insights into the company's strategic direction, stating, “We are exploring new markets and product segments by proposing a new product, ‘Ferrosilicon,’ which is primarily used in the production of stainless steel and carbon.”

The financial performance of the company reflects positive trends, with a reported revenue of ₹51.60 crore in FY23, demonstrating growth from ₹46 crore in FY22. The Profit After Tax (PAT) for FY23 stood at ₹20.83 crore, a notable increase from ₹17.47 crore in the preceding fiscal year. The DRHP submission signifies the company's ambitious expansion plans and underscores its commitment to diversification and sustainable growth in the industry.

HBL