Maharashtra-based Prasol Chemicals, a prominent manufacturer of acetone- and phosphorus-based specialty chemicals, is set to open its initial public offering (IPO) for subscription on September 8. The Rs 500-crore public issue aims to raise capital through a combination of a fresh issue of shares worth Rs 80 crore and an offer for sale (OFS) of up to Rs 420 crore by existing promoters and shareholders.
IPO Details and Schedule
The price band for the Prasol Chemicals IPO has been fixed at Rs 643 to Rs 676 per equity share, which values the company at approximately Rs 4,000.8 crore. Investors can subscribe to the issue from September 8 to September 10. The anchor book, reserved for institutional investors, will open for a single day on September 7.
Following the subscription period, the share allotment is anticipated to be finalized by September 11. Prasol Chemicals is then expected to list its shares on the stock exchanges on September 16, marking its debut in the public market.
Utilization of Funds and Company Profile
From the net proceeds of the fresh issue, Prasol Chemicals plans to allocate Rs 60 crore towards the repayment of outstanding debt, which stood at Rs 343.7 crore as of July 15, 2026. The remaining funds from the fresh issue will be utilized for general corporate purposes. The entire proceeds from the offer for sale, however, will go directly to the selling shareholders.
Established in 1992, Prasol Chemicals boasts a diverse portfolio of over 150 specialty chemical products. These include not only acetone- and phosphorus-based chemicals but also customized specialty chemicals like surfactants, performance additives, ethers, esters, polymers, and acids. The company's products find applications across various industries, including lubricant additives, mining chemicals, paints, inks, construction, adhesives (PICA), pharmaceuticals, agrochemicals, and home and personal care segments.
Financial Performance and Market Position
In the financial year ended March 2026, Prasol Chemicals reported a standalone profit of Rs 83.1 crore on a revenue of Rs 1,232.5 crore. On a consolidated basis, the company's profit surged by 140.3 percent to Rs 43.6 crore in FY25, up from Rs 18.1 crore in FY24. Consolidated revenue also saw a healthy increase of 15.5 percent, rising to Rs 1,012.5 crore in FY25 from Rs 876.6 crore in the preceding fiscal year.
The company faces competition from other listed entities in the specialty chemicals sector, such as Aarti Industries, Laxmi Organic Industries, Vinati Organics, and Privi Specialty Chemicals. DAM Capital Advisors is serving as the lead manager for the Prasol Chemicals IPO, which is one of six mainboard IPOs scheduled to open next week.
Investor Allocation
- Qualified Institutional Buyers (QIBs): 50% of the issue
- Retail Investors: 35% of the issue
- Non-Institutional Investors (NIIs): 15% of the issue