Prasol Chemical IPO GMP Today Drops to 2% On Day 2: Subscription Hits 57%; Should You Consider Applying?

On the second day of bidding, the Prasol Chemicals IPO GMP fell sharply, continuing the drop seen over the last four days. Before opening for subscription, the IPO was trading at a 24.41% premium on September 4th; the GMP gradually declined and is now trading at Rs. 691, which is Rs. 15, or 2.22%, above the issue price.

Prasol Chemical IPO Subscription Status

Prasol Chemical IPO is receiving modest demand, as it is subscribed only 0.58% overall. In the retail category, the IPO is booked 0.95 times. In the NII category the bidding number stood at 48% and no bids from the QIBs as of today

Prasol Chemical IPO Details

The Prasol Chemical IPO issue is worth Rs. 500 crores and has both a fresh issue of 11.83 lakh shares aggregating to Rs. 80 crores and an offer for sale of 62.13 lakh shares aggregating to Rs. 420 crores.

The bidding process for the Prasol Chemicals IPO opened yesterday, September 8th and will close on September 10th. Moreover, the allotment for the Prasol Chemicals IPO is expected to be finalised on Sep 11th. Prasol Chemicals IPO will list on NSE and BSE on September 16th.

The issue price band at Rs. 643 to Rs. 676 per share. The lot size for an application is 22 shares. Based on the upper price, the minimum amount of investment required by an individual retail investor is Rs .14,872 for 22 shares.

Is Prasol Chemical IPO worth Bidding?

Anand Rathi in its IPO report gave a Subscribe Rating to the IPO, as per the report, "On the valuation front, based on FY26 earnings, the company is seeking a P/E of 48x, and a post-issue market capitalization of approximately Rs 40,008 million, making the issue appears to be fully priced."

"However, their business is dependent on manufacturing facilities wherein unplanned shutdowns happen, disrupting operational activities. Overall strong product depth, R&D-led innovation and a diversified global customer base position the company well to capture long-term growth opportunities in speciality chemicals. Hence, we assign a Subscribe for Long Term rating for the issue," the report further added.

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