Prasol Chemicals Files for Rs 500 Crore IPO: Debt Reduction and Growth on the Horizon
Prasol Chemicals Ltd., a specialty chemicals producer, has filed for an IPO worth up to Rs 500 crore. The IPO includes a fresh issue of Rs 80 crore and an offer for sale of Rs 420 crore by promoters. The company plans to use Rs 60 crore from the fresh issue to repay debt. Prasol serves over 1,100 customers across 69 countries, specializing in acetone and phosphorous-based chemicals. The company's financials show growth with revenue increasing from Rs 876 crore to Rs 1,012 crore and net profit rising from Rs 18 crore to Rs 43.60 crore. DAM Capital Advisors is the sole merchant banker for the IPO.
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Prasol Chemicals Ltd., a Navi Mumbai-based specialty chemicals producer, has taken a significant step towards public listing by filing an application for an Initial Public Offering (IPO) worth up to Rs 500 crore. This move signals the company's ambition to strengthen its financial position and fuel future growth.
IPO Structure and Utilization
The proposed IPO comprises two components:
| Component | Amount (in Rs Crore) |
|---|---|
| Fresh Issue | 80.00 |
| Offer for Sale by Promoters | 420.00 |
| Total IPO Size | 500.00 |
Of the funds raised through the fresh issue, Prasol Chemicals plans to allocate Rs 60 crore towards debt repayment. This strategic decision aims to improve the company's financial health, considering its current outstanding debt of Rs 296 crore.
Company Profile and Market Presence
Prasol Chemicals has established itself as a prominent player in the specialty chemicals sector, with a focus on:
- Acetone-based specialty chemicals
- Phosphorous-based specialty chemicals
The company's global footprint is impressive, serving over 1,100 customers across 69 countries. This extensive market reach underscores Prasol's strong position in the international specialty chemicals market.
Financial Performance
Prasol Chemicals has demonstrated robust financial growth:
| Metric | FY24 | FY25 | Growth |
|---|---|---|---|
| Revenue (Rs Crore) | 876.00 | 1,012.00 | 15.50% |
| Operating Margin | 6.91% | 8.67% | 1.76% |
| Net Profit (Rs Crore) | 18.00 | 43.60 | 142.20% |
The company's financial performance shows significant improvement, with a notable increase in revenue and a substantial boost in profitability.
IPO Details
DAM Capital Advisors has been appointed as the sole merchant banker for this IPO, overseeing the entire process from filing to listing.
This IPO represents an opportunity for investors to participate in the growth story of a company operating in the specialty chemicals sector, which has been gaining increased attention in recent years. However, potential investors should carefully review the offer document and consider their risk appetite before making any investment decisions.
As Prasol Chemicals progresses through the regulatory process for its IPO, market observers will be keenly watching for further developments and the final pricing of the issue.
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