Along with two other IPOs, Kanohar Electricals and Glass Wall Systems (India), Prasol Chemicals IPO is offering shares in the primary market on September 08. The company has set the issue price band at Rs 643 – 676 per equity share.
The company aims to raise Rs 500 crore via a combination of 11.83 lakh fresh shares totalling Rs 80 crore, and an offer for sale of 62.13 lakh shares amounting to Rs 420 crore.
Prasol Chemicals IPO: Subscription snapshot
The issue has been subscribed 0.25 times so far on Day 01. Retail investors bought 0.42 times, and the non-institutional segment was booked 0.17 times. However, the qualified institutional buyers are yet to jump in.
Prasol Chemicals IPO: Allotment and listing
The allotment for the IPO is expected to be finalised on September 11, while the listing on the exchanges, NSE and BSE, is likely to be on September 16, as per the tentative schedule.
Prasol Chemicals IPO: Lot size
A retail investor needs to apply for a minimum of one lot, which has 22 shares. The minimum amount of investment required by an individual investor is Rs 14,872, as per the upper price band.
Prasol Chemicals IPO: BRLM and registrar
Dam Capital Advisors is the book-running lead manager for the IPO, and KFIN Technologies is the registrar of the issue.
Expert take on Prasol Chemicals IPO
On the valuation front, based on FY26 earnings, the company is seeking a P/E of 48x, and a post-issue market capitalisation of almost Rs 4,000.8 crore, making the issue appear to be fully priced, said Anand Rathi Research on the IPO.
However, their business is dependent on manufacturing facilities wherein unplanned shutdowns happen, creating disruption in operational activities.
“Overall strong product depth, R&D-led innovation and a diversified global customer base position the company well to capture long-term growth opportunities in speciality chemicals. Hence, we assign a Subscribe for Long Term rating for the issue,” said Prasol Chemicals.
About Prasol Chemicals
Prasol Chemicals operates in the speciality chemicals industry. The company manufactures over 150 speciality chemicals, including acetone-based, phosphorus-based, and other complex chemicals.
Incorporated in 1992, the company’s product portfolio includes 21 acetone-based chemicals, 53 phosphorus-based chemicals, and 76 other speciality chemicals (example: surfactants, esters, acids).
The products serve 5 major industries, including Performance chemicals (like lubricant and mining additives), paint, inks, construction, and adhesives (PICA), pharmaceuticals, agrochemicals, and home and personal care.
The company operates two manufacturing facilities in Khopoli across 1,20,604 sq. m. and in Mahad across 1,19,423 sq. mt with an aggregate capacity of 98,644 MT per year.