Gujarat Fluorochemicals Shares Tumbled Over 4%: Subsidiary to Raise ₹1,000 Crore

On October 23, 2024, Gujarat Fluorochemicals Limited (GFL), India’s leading fluorochemicals company through an exchange filing announced that its subsidiary, GFCL EV Products Ltd. (GFCL EV), has received board approval to raise ₹1,000 crore at an equity valuation of approximately ₹25,000 crore. This funding round was led by the promoters of the INOXGFL Group, along with several prominent investors, including family offices from some of India’s largest business groups. 

Use of Funds

GFCL EV Products Ltd would use the funds towards capital expenditure to help GFCL EV scale operations and capitalise on significant global opportunities in the electric vehicles (EV) and energy storage systems (ESS) sectors.

With its diverse offerings and strong industry credentials, GFCL EV aims to leverage opportunities stemming from the Inflation Reduction Act (IRA) in the US and the global trend of diversifying supply chains away from single-source dependencies. The global EV battery market is projected to reach $300 billion by 2030, with lithium battery demand expected to surge from approximately 1,100 GWh to 5,000-6,000 GWh in the same timeframe, driving significant demand for the battery materials that GFCL EV provides.

About GFCL EV Products Ltd

GFCL EV is strategically positioned to capture a substantial share of the global battery materials market, aiming to become a preferred partner for EV and ESS battery manufacturers seeking a sustainable and reliable supply chain. The company boasts fully integrated manufacturing capabilities, including backward integration into AHF, LiF, and captive fluorspar. Its product portfolio, tailored for the EV and ESS ecosystems, includes:

• Battery chemicals: electrolyte salts (LiPF6), electrolyte formulations, and performance-enhancing additives
• Cathode active materials (LFP)
• Binders (PVDF and PTFE)

On October 23, 2024, Gujarat Fluorochemicals shares opened at ₹4,712.95 and touched the day low of ₹4,450.70, reflecting a fall of 5.30% at 10:35 AM. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.