Supreet Chemicals Submits DRHP to SEBI for ₹499 Crore IPO

Supreet Chemicals Ltd, a Gujarat-based speciality chemical company, filed draft papers with the Securities and Exchange Board of India (SEBI) on September 5, 2025. The company aims to raise ₹499 crore through an Initial Public Offering (IPO). The offer will consist only of a fresh issue of shares, with no offer-for-sale component.

Fund Utilisation

As per the draft prospectus, ₹310 crore from the IPO proceeds will go towards setting up a greenfield manufacturing facility, referred to as Plant 4. About ₹65 crore will be used to repay borrowings, while the balance will cover general corporate purposes. Supreet Chemicals reported outstanding borrowings of ₹203.5 crore as of July 2025.

Pre-IPO Placement

The company has mentioned the possibility of raising up to ₹99 crore through a pre-IPO placement. If this is completed, the size of the fresh issue will be reduced by the equivalent amount.

Supreet Chemicals Business Overview

Supreet Chemicals manufactures speciality chemical intermediates that serve industries such as textiles, pharmaceuticals, agro-chemicals, performance chemicals, and personal care. Its product portfolio includes MCA, sulphonamides, and NAPSA. It is also a supplier of SAMBA, a complex molecule produced through 15 multi-step processes.

Supreet Chemicals Financial Performance

In FY25, the company’s profit rose 103% to ₹51.9 crore compared to ₹25.6 crore in the previous year. Revenue during the same period increased 51.2% to ₹362.5 crore, up from ₹239.8 crore. However, in FY24, the firm reported a 54.6% drop in profit and a 23.3% decline in revenue.

Industry Overview

According to F&S data cited in the filing, the global speciality chemical intermediates market was valued at $1,309 billion in 2024 and is projected to reach $1,802 billion by 2029. Asia-Pacific accounts for more than half of this demand, while India is expected to grow at around a 10% CAGR from 2025 to 2030.

IIFL Capital Services has been appointed as the sole book-running lead manager for the IPO.

Read more: Upcoming IPO: Abril Paper Tech IPO Opens for Subscription on August 29, 2025!

Conclusion

The draft prospectus indicates that funds from the share sale will primarily support project development, debt servicing, and corporate expenses.

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