Prasol Chemicals IPO

Sebi approved Prasol Chemicals IPO – Indepth actionable insights

Prasol Chemicals IPO – the company

Prasol chemicals IPO got SEBI approval for INR 800 crores of offering. The company was incorporated as ‘Prachi Poly Products Private Limited’ in Mumbai on January 24, 1992. The name again changed to ‘Prasol Chemicals Limited’, on February 4, 2022. Brief about the company below.

  • A leading forward integrated manufacturer of acetone derivatives and phosphorous derivatives in India.  
  • The company is one of the important players in the specialty chemical industry in India.
  • The products of the company cater to various industries such as pharmaceuticals, agrochemicals, home, personal care, and performance chemicals.

Read the complete company insights here – “Prasol Chemicals Limited” – Key products, finance, management team, strategic insights”

 

Prasol Chemicals IPO – founders or leaders

Mr. Nishith Rajnikant Shah is the founder chairman and Whole-time director of the Company. Mr. Gaurang Natwarlal Parikh is the Managing Director of the Company since August 9, 2001. Read the complete leadership profile here – “Prasol Chemicals Limited

Prasol Chemicals Limited Financial analysis

The company reported strong revenue from operations of INR 6322 million, for the nine months ended in December 2021. The revenue from the operation has been going up from FY 2019 to FY 2021 from INR 4,983.00 million to INR 5,955.40 million. Read financial details of the company in the report – “Prasol Chemicals Limited

Prasol Chemicals IPO pricing and issue size

Prasol Chemicals Limited Chemical got SEBI approval for INR 800 crores of Initial public offering. The company is coming up with fresh issue of Equity Shares aggregating up to INR 250 crores and an offer for sale Up to 9,000,000 Equity Shares at a face value of INR 2 each. The promoters of the company are selling their stakes in the company within offer for sale.

Book Running Lead Managers and registrar of Prasol Chemicals IPO are

  • JM Financial Limited
  • DAM Capital Advisors Limited (Formerly IDFC Securities Limited)
  • The registrar for this IPO is KFin Technologies Limited. 

The company’s equity shares outstanding before the initial public offer stand at 58,000,000 shares. The face value of the Equity Shares is INR 2.00 per Equity Share.

Share Reservations among QIBS (Qualified Institutional Buyers), NIBS (Non-Institutional Bidders), AND RIBS (Retail Individual Bidders)

  • Not more than 50% of the Offer is available for the QIB portion
  • The company may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis
  • 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only
  • No less than 15% of the Offer will be allocated to NIBs
  • No less than 35% of the Offer will be allocated to RIBs

Utilization of Net Proceeds from Prasol Chemicals IPO

The company will not receive any amount from the offer for sale. However, Prasol Chemicals Limited is proposing below to utilize the net proceeds from the IPO.

  • The company will repay/ prepay in full or part of certain borrowings
  • To fund the working capital requirements of the Company
  • To meet the general corporate purposes.

Why do you invest in Prasol Chemicals IPO?

Prasol Chemicals Limited has significantly expanded its business and scale of operations since incorporation. The company has grown from a small-scale manufacturer to a large diversified specialty chemical player with a global footprint. Again, the opportunities after China’s slowdown will benefit the company’s future growth prospects. The recent downturn in China’s specialty chemicals industry is an opportunity for Indian manufacturers. Indian companies have a cost advantage. In the changing global landscape after Covid19, global companies want to diversify supply risks, thereby improving the export opportunity for Indian players. Further, the company will benefit from its long-standing relationships with clients for sustained growth and success. One can invest in the company if the valuation is good.

Prasol Chemicals Limited IPO details
Subscription DatesComing soon
Anchor Investor Bidding DateComing soon
BID/OFFER Opens onComing soon
BID/OFFER closes OnComing soon
Price BandComing soon
Offer for sale          9,000,000 Equity Shares
Equity Shares outstanding before the Issue58,000,000 Equity Shares
Minimum bid (lot size)Coming soon
Face ValueINR 2 each
Listed on BSE & NSE

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