Navi Mumbai based specialty chemicals company, Galaxy Surfactants is planning to raise around Rs 937 crore from its initial public offering (IPO). In 2011, Galaxy Surfactants had entered the capital markets to raise over Rs 200 crore through its initial share sale. However, it failed in its earlier attempts to go public. The company has now set a price band of Rs 1,470 to Rs 1,480 for its initial public offering (IPO). The IPO is scheduled to open on January 29 and close on January 31. Bids can be made for a minimum of 10 equity shares and multiples of 10 thereof. The issue is an offer for sale (OFS) of up to 63.31 lakh equity shares of face value of Rs 10 each.The company’s profit for year ended 31 March, 2017 was Rs 146.3 crore against Rs 102.7 crore during the same period in the previous financial year. The book running lead managers to the offer are ICICI Securities, Edelweiss Financial Services and JM Financial Limited. Galaxy Surfactants is a manufacturer of surfactants and other ingredients for the personal and home care industries. Its products find application in skin care, oral care, hair care, cosmetics, toiletries and detergent products.
Galaxy clientele include Cavinkare, Colgate-Palmolive, Dabur India, Henkel, Himalaya, L’Oreal, Procter & Gamble Home Products, Reckitt Benckiser and Unilever and among others. The Chinese government has recently mentioned that toxic plants need to be relocated out of densely populated regions. Ambit believes that India has multiple opportunities due to disruption in China. “Many multi-national companies present in China are considering shifting their manufacturing base to India or are considering setting up new capacities in India.
Many global chemical companies from Japan, Europe and Korea are at various stages of setting up business in India as PE investors, through buyouts or by setting up greenfield capacities. Hence local Indian companies will also have ample opportunity to grow in their niches,” explained Ritesh Gupta, research analyst at Ambit in a research report. Other prominent Indian players in the specialty chemicals space are NOCIL, Navin Fluorine, Nagarjuna Agrichem, PI Industries, Vinati Organics and SRF.