Prasol Chemicals Files DHRP With SEBI to Raise ₹500 Crore

Prasol Chemicals, a Navi Mumbai-based specialty chemicals manufacturer, has filed its draft red herring prospectus (DRHP) with SEBI to raise ₹500 crore through an initial public offering. The IPO includes a fresh issue of ₹80 crore and an offer-for-sale (OFS) of ₹420 crore by existing promoters.

The company plans to use part of the proceeds to repay borrowings and fund general corporate purposes. DAM Capital Advisors has been appointed as the sole merchant banker for the issue.

IPO Structure and Fund Allocation

The proposed IPO consists of two components:

• Fresh Issue: ₹80 crore
• Offer-for-Sale: ₹420 crore by promoters

The majority of the funds will go to existing shareholders via the OFS. Of the fresh issue proceeds, ₹60 crore will be used to repay certain borrowings, while the remaining ₹20 crore will be allocated for general corporate purposes.

As of August 2025, Prasol Chemicals reported total outstanding debt of ₹296.1 crore, excluding accrued interest.

Promoter Holding and Share Distribution

Promoters currently hold 89.20% of the company, with the remaining 10.8% owned by public shareholders. The IPO is expected to reduce promoter shareholding and increase public participation.

The post-issue shareholding pattern will be disclosed in the final prospectus.

Business Overview and Market Presence

Established in 1992, Prasol Chemicals manufactures acetone- and phosphorus-based specialty chemicals. The company offers over 150 products and serves 1,107 customers across 69 countries.

Its products cater to industries such as pharmaceuticals, agrochemicals, paints, inks, adhesives, construction, and personal care. Approximately 72% of its revenue is generated from domestic sales, while 28% comes from exports.

Financial Performance

For the financial year ending March 2025, Prasol Chemicals reported a net profit of ₹43.6 crore, a 140.3% increase from ₹18.1 crore in the previous year. Revenue rose 15.5% to ₹1,012.5 crore from ₹876.6 crore.

The company competes with listed peers such as Aarti Industries, Atul, Laxmi Organics, Vinati Organics, and Privi Speciality Chemicals.

Read More: Integris Medtech Files DRHP With SEBI for ₹925 Crore IPO

Conclusion

Prasol Chemicals’ IPO filing marks a strategic move to strengthen its financial position and expand its market reach. The company’s strong growth in profit and revenue reflects its operational efficiency and market demand.

With a diversified product portfolio and global presence, it is well positioned to attract investor interest. The IPO will be closely watched by market participants and industry analysts alike.

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