Prasol Chemicals files draft papers to raise Rs 500 crore via IPO

Prasol Chemicals IPO News

Navi Mumbai-based Prasol Chemicals, an acetone- and phosphorous-based specialty chemicals manufacturer, has filed draft red herring prospectus with the SEBI to raise funds up to Rs 500 crore via initial share sale.

The company proposed to raise Rs 80 crore via fresh issue, while promoters will offload up to Rs 420 crore worth shares through offer-for-sale route, indicating the majority amount will be received by existing shareholders, as per the DRHP filed on October 14.

Promoters hold 89.20 percent stake in Prasol, and the remainder 10.8 percent shares are owned by public shareholders.

The company will utilise Rs 60 crore of fresh issue proceeds for repayment of its certain borrowings, and the remaining amount for general corporate purposes.

As of August 2025, the total outstanding indebtedness (excluding accrued interest) was Rs 296.1 crore, Prasol Chemicals said.

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Incorporated in 1992, Prasol claims a diversified specialty chemical company with over 150 specialty chemical products and 1,107 customers and exports to 69 countries, supplying products to several industries such as performance chemicals, paints, inks construction, & adhesives, pharmaceuticals, agrochemicals, and home and personal care.

The company that competes with several listed peers like Aarti Industries, Atul, Laxmi Organics, Vinati Organic, and Privi Speciality Chemicals earned nearly 72 percent business from India and 28 percent through exports.

On the financial front, it reported profit at Rs 43.6 crore for the year ended March 2025, growing 140.3 percent compared to Rs 18.1 crore in previous year. Revenue during the same period increased by 15.5 percent to Rs 1,012.5 crore, up from Rs 876.6 crore.

DAM Capital Advisors is appointed as the sole merchant banker for the Prasol Chemicals IPO.