Prasol Chemicals Files for Rs 500 Crore IPO: A Detailed Analysis for Indian Investors
Prasol Chemicals Ltd., a Navi Mumbai-based specialty chemicals producer, has applied for an initial public offering to sell shares worth up to Rs 500 crore in the stock market. The company’s decision to go public has generated significant interest among Indian investors, who are eager to know more about the company’s business, financials, and growth prospects.
About Prasol Chemicals
Prasol Chemicals is a leading manufacturer of specialty chemicals, including acetone and phosphorous-based chemicals. The company has a diverse product portfolio of over 150 specialty chemical products and a strong customer base of 1,107 clients, including notable companies such as Alembic Pharmaceuticals Ltd., Bharat Rasayan Ltd., Coromandel International Ltd., Rossari Biotech Ltd., and Supriya Lifescience Ltd.
Prasol Chemicals operates manufacturing facilities in Maharashtra’s Khopoli and Mahad, with an aggregate installed capacity of 87,914 metric tonnes per annum. The company’s products are exported to 69 countries, with exports contributing nearly 30% of its revenue in the financial year 2025.
IPO Details
The IPO consists of a fresh issue of equity shares of face value of Rs 2 each, aggregating up to Rs 80 crore, and an offer for sale by promoters worth up to Rs 420 crore, as per draft offer documents. The company plans to utilise up to Rs 60 crore from the net proceeds in the fresh issue towards repayment of debt, which stood at Rs 454 crore as of August 31, 2025.
The remaining funds will be deployed for general corporate purposes. Ten promoter entities will offload equity via the offer for sale (OFS). DAM Capital Advisors Ltd. is the sole merchant banker to the IPO.
Financial Performance
Prasol Chemicals has demonstrated a strong financial performance in recent years. The company generated a revenue of Rs 1,012 crore in FY25, compared to Rs 876 crore in FY24 and Rs 930 crore in the previous year. Operating margin improved to 8.67% in the last fiscal, from 6.91% in FY24.
Net profit came in at Rs 43.6 crore in FY25, more than double from Rs 18 crore a year ago. The company’s financial performance is expected to continue on a growth trajectory, driven by its strong product portfolio, expanding customer base, and increasing demand for specialty chemicals.
Industry Outlook
The specialty chemicals industry in India is expected to grow significantly in the coming years, driven by increasing demand from various end-use industries such as pharmaceuticals, agrochemicals, and automotive. The industry is also expected to benefit from the government’s initiatives to promote the growth of the chemical sector, including the Make in India and Atmanirbhar Bharat initiatives.
Investment Rationale
Prasol Chemicals’ IPO offers an attractive investment opportunity for Indian investors. The company’s strong financial performance, diversified product portfolio, and expanding customer base make it an attractive bet for long-term investors. Additionally, the company’s plans to repay debt and deploy funds for general corporate purposes are expected to improve its financial health and drive growth in the coming years.
However, investors should also consider the risks associated with the IPO, including the company’s dependence on a few large customers, intense competition in the specialty chemicals industry, and regulatory risks. Investors should carefully evaluate the company’s financials, business model, and growth prospects before making an investment decision.
Conclusion
Prasol Chemicals’ IPO is an attractive investment opportunity for Indian investors. The company’s strong financial performance, diversified product portfolio, and expanding customer base make it an attractive bet for long-term investors. However, investors should carefully evaluate the company’s financials, business model, and growth prospects before making an investment decision. To learn more about the Indian stock market and stay updated on the latest news and trends, visit our website and follow our stock market news section.
