SYNOPSIS: Tanfac Industries approved a stock split, a Rs. 495 crore fluorochemicals capacity expansion at Cuddalore, and plans to raise Rs. 500 crore via equity to fund growth and strengthen its long-term strategy.
Shares of one of the leading producers of hydrofluoric acid and its derivatives surged nearly 5 percent to hit an intraday high at Rs. 4,740 on Friday, after the company’s Board approved a 1:2 stock split and cleared plans to set up a new downstream fluorinated chemicals manufacturing facility.
With a market cap of Rs. 4,390.6 crores, shares of Tanfac Industries Limited closed in the red at Rs. 4,401.65 on BSE, down by around 3 percent, as against its previous closing price of Rs. 4,518.1. The stock has delivered positive returns of around 53 percent in one year, and has gained by nearly 14 percent in the last one month.
What’s the News
As per its latest regulatory disclosures, the Board of Tanfac Industries Limited, at its meeting held on 9th January 2026, considered and approved a set of strategic initiatives aimed at improving liquidity, expanding capacity, and supporting long-term growth.
Share subdivision to improve liquidity: The Board approved a proposal of a stock split in a 1:2 ratio, such that 1 equity share having a face value of Rs. 10 each to be sub-divided into 2 equity shares having a face value of Rs. 5 each, subject to shareholder and regulatory approvals. The record date for the split will be announced after receiving the necessary approvals.
Major capacity expansion: Board also approved the setting up of a new downstream fluorinated chemicals manufacturing facility with an installed capacity of 20,000 tonnes per annum (TPA) at its existing Cuddalore plant. The project involves an estimated investment of Rs. 495 crore, to be funded through a mix of equity and debt, and is expected to be commissioned by November 2026. This expansion aligns with the company’s long-term strategy to deepen its downstream product portfolio, support India’s environmental objectives, and create sustainable stakeholder value.
Fundraise: Additionally, the Board approved a proposal to raise up to Rs. 500 crore through the issuance of equity shares in one or more tranches via Qualified Institutional Placement (QIP) or other permitted routes, subject to shareholder/regulatory approvals.
Financials & More
Tanfac Industries reported a significant growth in revenue from operations, experiencing a year-on-year increase of around 51 percent, from Rs. 112 crores in Q2 FY25 to Rs. 169 crores in Q2 FY26. In contrast, its net profit declined during the same period from Rs. 19 crores to Rs. 17 crores, representing a marginal fall of around 11 percent YoY.
Tanfac Industries Limited is one of the leading entities in the Indian chemical sector, functioning as a joint venture between Anupam Rasayan India Limited and the Tamil Nadu Industrial Development Corporation (TIDCO). It is one of the foremost producers of hydrofluoric acid and its derivatives, including aluminium fluoride and a range of specialty chemicals.
The company maintains a comprehensive product portfolio, which includes anhydrous hydrofluoric acid, sulphuric acid, oleum, potassium fluoride, potassium bifluoride, boron trifluoride complexes and calcium sulphate, among others.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
