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Tamilnadu Coke & Power Limited files DRHP with NSE Emerge

• nationalherald
• December 26, 2023

by Prashant Kapadia/NHN 

• IPO comprises a fresh issue of 64,14,000 equity shares with a face value of Rs. 10 each

• The company specializes in the production of Low Ash Metallurgical (“LAM”) Coke by conversion of coking coal and generation of power from waste heat recovery and sale of electricity

• TNCPL intends to use the proceeds to establish a new Ferrosilicon manufacturing unit and a new solar power plant, to acquire more land and for general corporate purposes

• The company recorded a revenue of Rs. 51.60 crore in FY23, up from Rs. 46.11 crore in FY22

• Beeline Capital Advisors Private Limited has been appointed as the Book Running Lead Manager, and Link Intime India Private Limited is the Registrar to the Issue 

December 26, 2023: Tamilnadu Coke & Power Limited (The company or TNCPL), a leading manufacturer of Low Ash Metallurgical (“LAM”) Coke, announced the filing of its Draft Red Herring Prospectus (DRHP) with the NSE Emerge. The offering comprises a fresh issuance of 64,14,000 equity shares, each with a face value of Rs. 10. Beeline Capital Advisors Private Limited has been designated as the Book Running Lead Manager, and Link Intime India Private Limited is the Registrar to the issue.

Headquartered at Thandalacherry village in Gummidipoondi Taluk of Thiruvallur district, Tamil Nadu, TNCPL is engaged in the business of producing Low Ash Metallurgical (“LAM”) Coke by conversion of coking coal, sale of coal, generation of power from waste heat recovery and sale of electricity. Its product portfolio under the Low Ash Metallurgical (LAM) Coke vertical includes Lumpy Coke, Blast Furnace Coke, Nut Coke and Coke Fines.

The company operates a Low Ash Metallurgical (LAM) Coke Oven plant at Thandalacherry, Tamil Nadu, with two batteries, consisting of 65 ovens with a total capacity of 1,20,000 TPA. Furthermore, the company owns a power generation unit with an installed capacity of 10 MW and sells electricity to various consumers through the Indian Energy Exchange.

According to the DRHP, proceeds from the issue will be used to a) establish a new Ferrosilicon manufacturing unit, b) set up a new solar power plant, c) acquire additional land and d) for general corporate purposes. TNCPL intends to spend Rs. 39.60 crore of the IPO proceeds to set up a new 2×5 Mega Volt-Amps (MVA) Ferrosilicon plant with a production capacity of 8,000 TPA, Rs. 5 crore to acquire more land adjacent to the existing plant and Rs. 8.63 crore to establish a new solar power plant with a capacity of 1581 KWP.

Elaborating on the company’s IPO plans, Mr. Ayaan Ahuja, Chairman & Managing Director, Tamilnadu Coke & Power Limited, said, “While focusing on achieving operational efficiency in the metallurgical coke manufacturing and power generation verticals, which complement each other, 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.  We will be utilizing the proceeds from the IPO to build a Ferrosilicon facility with a capacity of 2×5 MVA to be spread across 5.43 acres of land within the existing plant’s premises. Additionally, we are planning to come up with a solar power plant with a capacity of 1581 KWP to further boost our power generation capabilities.”

TNCPL is promoted by Tamilnadu Global Trading LLP and Mr. Ayaan Ahuja. The company acquired land and building along with a coke manufacturing unit with an installed coke processing capacity of 1,20,000 TPA and a waste heat recovery power plant with an installed capacity of 10 MW spread across 24.70 acres from Basudha Udyog Private Limited in the fiscal year 2017-18.

The company’s coke manufacturing unit and power plant are strategically located at Thandalacherry village in Thiruvallur district, in close proximity to its customers based in Maharashtra, Karnataka, Andhra Pradesh and Chhattisgarh and are easily accessible to Ennore and Krishnapatnam ports, providing a convenient transportation advantage.

TNCPL’s revenue from operations increased to Rs. 51.60 crore in FY2022-23, up from Rs. 46.11 crore in FY2021-22. In FY2022-23, the company made a profit (PAT) of Rs. 20.83 crore, compared to Rs. 17.47 crore in FY2021-22.