Indian private equity firm ChrysCapital-backed Safex Chemicals (India), the agrochemicals company, has filed draft papers with the SEBI to raise funds via initial public offering (IPO) for debt reduction.
The IPO will be a combination of fresh issuance of equity shares worth Rs 450 crore, and an offer-for-sale (OFS) of 3.57 crore shares by existing shareholders.
Promoters, along with investors Sarcoline, Anchor Partners, and Sage Investment Trust will be selling shareholders in the OFS.
Promoters hold 54.3 percent stake in Safex Chemicals, and ChrysCapital through its entities - Sarcoline, Anchor Partners and Sage Investment Trust, owns 44.80 percent shareholding.
The Delhi-based specialty chemicals company may consider raising up to Rs 90 crore in pre-IPO round.
Safex Chemicals will utilise Rs 365.6 crore out of fresh issue proceeds for repaying its debt, and the remainder funds for general corporate purposes.
As of April 2025, the total outstanding borrowings of the company and its subsidiaries amounted to Rs 889 crore.
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Incorporated in 1991, Safex Chemicals operates in three business verticals - branded formulation, specialty chemicals and contract development and manufacturing (CDMO) catering to agrochemical sector.
In branded formulation business, it has a portfolio of 140 products across insecticides, herbicides, fungicides, fertilizers and plant growth regulators, while its CDMO business provides contract development and manufacturing services to global agrochemical companies through manufacturing plant in Norwich, United Kingdom.
Safex Chemicals that competes with listed peers like Bayer Cropscience, Sumitomo Chemical, Rallis India, Dhanuka Agritech, Navin Fluorine International, Vinati Organics, PI Industries, and Anupam Rasayan has posted loss of Rs 14.3 crore for the year ended March 2025, narrowing from the loss of Rs 22.8 crore in the previous year. It had an exceptional loss of Rs 54 crore in FY25 against nil in the previous fiscal.
Revenue during the fiscal 2025 stood at Rs 1,584.8 crore, growing 12.8 percent compared to Rs 1,404.6 crore in the fiscal 2024.
Axis Capital, JM Financial, and SBI Capital Markets are appointed as merchant bankers to handle the Safex Chemicals IPO.
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