INOX Group-Backed Specialty Chemical Company’s EV Subsidiary Raises Rs 1,000 Crore At An Equity Valuation Of Rs 25,000 Crore
The stock is up by 81.25 per cent from its 52-week low of Rs 2,480 per share and gave multibagger returns of over 500 per cent in 5 years.
Gujarat Fluorochemicals Limited (GFL), India’s leading fluorochemicals company, announced today that the board of its subsidiary, GFCL EV Products Ltd. (GFCL EV), has approved the raise of Rs 1,000 crore at an equity valuation of Rs 25,000 crore. The promoters of the INOXGFL Group led the round in the fundraise along with several marquee investors, including the family offices of some of the largest business groups in India. The funds will be utilized for the capex requirements of the company as it scales up to capitalize on the large-scale global opportunities in the electric vehicles (EV) / energy storage systems (ESS) space.
GFCL EV is well positioned to capture a sizeable value share in the global battery materials industry and become a preferred partner to EV/ESS battery/cell manufacturers in their quest to secure a sustainable and reliable supply chain. GFCL EV has fully integrated manufacturing capabilities with backward integration into AHF, LiF and captive fluorspar. Its current product portfolio, catering to both EV & ESS ecosystem, includes:
- Battery chemicals – electrolyte salts LiPF6, electrolyte formulations, additives for enhanced performance
- Cathode active materials (LFP)
- Binders (both PVDF and PTFE).
GFCL EV, with its diversified battery materials offerings and strong credentials, aims to capitalize on the opportunities arising on the back of the Inflation Reduction Act (IRA) in the US and the strategic diversification globally of supply chains away from a single origin country. The global opportunity for the EV battery chain is estimated to reach USD 300 billion by 2030. The projected increase in the global lithium battery demand from 1,100 GWh to 5,000-6,000 GWh by 2030 will lead to significant demand for the battery materials which GFCL EV caters to.
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About Gujarat Fluorochemicals Ltd
Gujarat Fluorochemicals Limited (GFL) is India’s leading producer of fluoropolymers, fluorochemicals and battery materials. It is part of the US$ ~ 12 bn INOXGFL Group which has a legacy of over nine decades and is primarily focused on two business verticals - chemicals and renewable energy. GFL has three manufacturing units in Gujarat, including one of the world’s most integrated facilities at Dahej, and a captive Fluorspar mine in Morocco. The company has a global reach with offices and warehouses in Europe, USA and Middle East. GFL is the largest producer of fluoropolymers in India and amongst the top few globally, with fully integrated manufacturing facilities.
GFCL EV Products Ltd. (GFCL EV), a 100% subsidiary of GFL, offers a range of battery material products catering to the EV / ESS ecosystem, capitalizing on the large global energy transition opportunity. GFCL EV has an integrated manufacturing facility, a global distribution network, with the widest array of product offerings under one roof.
The company has a market cap of Rs 47,000 crore and it is backed by Inox Group. The stock is up by 81.25 per cent from its 52-week low of Rs 2,480 per share and gave multibagger returns of over 500 per cent in 5 years. Investors should keep an eye on this mid-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.