Prasol Chemical Files Draft Papers With SEBI To Raise Rs 800 Cr Via IPO

Mumbai-based Prasol Chemicals Limited, a speciality chemicals company, has filed draft papers for Initial Public Offering (IPO) with market regulator Securities Exchange Board Of India (SEBI).

According to the filed draft red herring prospectus (DHRP), the IPO consists of a fresh issue of up to Rs 250 crore with a face value of Rs 2 per share and an Offer For Sale (OFS) of up to 9,000,000 equity shares by existing shareholders.

The OFS consists of up to 6.30 lakh by Gaurang Natwarlal Parikh, up to 8.7 lakh shares by Nishith Rasiklal Dharia, and up to 1.65 million shares by Usha Rajnikant Shah, up to 5 lakh shares each by Bhisham Kumar Gupta and Dipti Nalin Parikh.

According to market sources, the company is expected to raise around Rs 700-800 crore.
The proceeds of the Rs 160 crore sale would be utilised to repay the debt. The total outstanding borrowings were Rs 279.29 crore as of December 2021.

The company would also spend Rs 30 crore for working capital needs. Its fund-based working capital limit was Rs 214.82 crore as of December 2021, while its non-fund-based limit at Rs 82.70 crore.

For fiscal year (FY) 2021, its total income stood at Rs 602.14 crore versus Rs 534.72 crore a year ago. Net profit was at Rs 25.08 crore against Rs 37.77 crore last year.

JM Financial and DAM Capital Advisors Ltd are the book managers for the issue.

Prasol Chemicals Limited

Prasol Chemicals Limited is a speciality chemical firm situated in Mumbai. It has a distribution network that stretches over 45 countries in Asia, North America, and the European Union.

Its products are also utilised as raw ingredients in household and personal care goods including sunscreens, flavours, shampoos, fragrances, and disinfectants.

In India, the company is one of the leading forward integrated manufacturers of acetone derivatives and phosphorus derivatives. Its products are used in four industries: pharmaceuticals, home and personal care, agrochemicals, and performance chemicals.