About Prasol Chemicals IPO
Prasol Chemicals Limited, a Navi Mumbai-based specialty chemicals manufacturer, opens its IPO for public subscription from September 8, 2026, to September 10, 2026, at a price band of ₹643 to ₹676 per equity share of face value ₹2.
The IPO is a book-built issue of ₹500.00 crore, comprising 73,96,437 equity shares. It is a fresh issue of 11,83,431 shares worth up to ₹80.00 crore and an offer for sale of 62,13,006 shares worth ₹420.00 crore by twenty selling shareholders, sixteen of whom are promoters.
The OFS of Prasol Chemicals accounts for 84% of the issue.
Business Overview of Prasol Chemicals
Prasol Chemicals Limited was incorporated in 1992 and operates in the specialty chemicals industry, manufacturing over 150 specialty chemicals across acetone-based, phosphorous-based and other complex chemistries.
Key Highlights of this IPO:
| Business HighlightsKey Details | |
|---|---|
| Product Portfolio | More than 150 specialty chemicals |
| Product Split | 21 acetone-based, 53 phosphorous-based and 76 other products including surfactants, esters, and acids |
| Manufacturing Facilities | Two units — Khopoli across 1,20,604 sq. m. and Mahad across 1,19,423 sq. m. |
| Customer Base | 1,600 customers as of July 31, 2026 |
| Export Reach | 69 countries across APAC, North and South America, and Europe |
| Export Certification | Government of India certified 3 Star Export House |
| Key Customers | Alembic Pharmaceuticals Lubrizol India Rossari Biotech Clean Science Gharda Chemicals Croda India Supriya Lifescience Yasho Industries |
| R&D | Established R&D capabilities with a stated product pipeline |
| Operating History | Incorporated 1992 |
Prasol Chemicals: IPO Date, Price, and Other Details
Here are the details of the upcoming Prasol Chemicals IPO:
| ParticularDetail | |
|---|---|
| Issue Size | ₹500.00 crore (73,96,437 equity shares) |
| Offer Type | Book-built issue (fresh capital cum OFS) |
| Fresh Issue | 11,83,431 shares (up to ₹80.00 crore) |
| Offer for Sale | 62,13,006 shares (up to ₹420.00 crore) |
| Face Value | ₹2 per equity share |
| Price Band | ₹643 to ₹676 per share |
| IPO Open Date | September 8, 2026 to September 10, 2026 |
| Basis of Allotment | September 11, 2026 |
| Refunds | September 15, 2026 |
| Credit to Demat Account | September 15, 2026 |
| Listing Date | September 16, 2026 |
| Lot Size | 22 shares |
| Minimum Investment (Retail) | ₹14,872 |
| Book Running Lead Manager | DAM Capital Advisors Ltd. |
| Registrar | Kfin Technologies Ltd. |
| Listing Exchanges | BSE, NSE |
Pre-issue shareholding stands at 5,80,00,000 equity shares, rising to 5,91,83,431 shares post-issue.
Prasol Chemicals IPO Reservation: Who Can Apply?
The Prasol Chemicals IPO has the following investor category reservation:
| ApplicationLotsSharesAmount | |||
|---|---|---|---|
| Retail (Min) | 1 | 22 | ₹14,872 |
| Retail (Max) | 13 | 286 | ₹1,93,336 |
| S-HNI (Min) | 14 | 308 | ₹2,08,208 |
| S-HNI (Max) | 67 | 1,474 | ₹9,96,424 |
| B-HNI (Min) | 68 | 1,496 | ₹10,11,296 |
Strengths and Risks of Prasol Chemicals IPO
Every business has its strengths and risks, and Prasol Chemicals is no different. Here is a brief business analysis (as per RHP) below:
Strengths
- Sharp FY26 profit growth: Profit after tax rose 91% to ₹83.12 crore while total income rose 22% to ₹1,237.85 crore.
- Highly diversified product portfolio: More than 150 specialty chemicals used by Prasol Chemicals across five distinct application industries.
- Broad customer base: 1,600 customers as of July 31, 2026, reducing dependence on any single buyer.
- Low leverage: Total borrowings of ₹110.06 crore against net worth of ₹448.51 crore, a debt-to-equity ratio of 0.19.
- Established export franchise: Sales to 69 countries with 3 Star Export House certification from the Government of India.
- Blue-chip customer relationships: Supplies to Alembic Pharmaceuticals, Lubrizol India, Rossari Biotech, Clean Science, Croda India and Supriya Lifescience.
- Manufacturing scale: Two facilities at Khopoli and Mahad with aggregate capacity of 98,644 MT per year.
- R&D capability: Established research capabilities with a stated pipeline of products.
Risks
- Offer for sale dominates the issue at ₹420.00 crore of the ₹500.00 crore total (i.e., 84%). Only ₹80.00 crore reaches the company.
- The entire OFS is a promoter and family sale across twenty selling shareholders, with promoter holding falling from 89.2% to 77.51%.
- Thin margins for a specialty chemicals business.
- Only ₹60.00 crore of the ₹80.00 crore fresh issue is allocated to debt repayment, against total borrowings of ₹110.06 crore. The issue does not fund capacity expansion.
- Raw material price exposure, with acetone and phosphorus feedstock costs moving independently of contracted selling prices.
- Cyclicality of end markets, particularly agrochemicals and paints and coatings.
- Export concentration risk across 69 countries, exposed to currency movements, freight costs and trade measures.
- Environmental and regulatory compliance obligations covering pollution control, effluent handling and hazardous materials.
IPO Objectives – How Will the Funds Be Used?
The Prasol Chemicals company proposes to utilise the net proceeds of the fresh issue towards:
| #Issue ObjectsEst. Amount (₹ crore) | ||
|---|---|---|
| 1 | Repayment and/or pre-payment, in full or in part, of certain borrowings availed by the company | 60.00 |
| 2 | General corporate purposes | Balance |
| Total (identified object) | 60.00 |
(Note: The ₹420.00 crore offer for sale proceeds accrue to the selling shareholders and are not received by the company.)
Promoter Shareholding of Prasol Chemicals
The promoters of Prasol Chemicals Limited are Nishith Rajnikant Shah, Gaurang Natwarlal Parikh, Dhaval Nalin Parikh, Pankil Nishith Dharia, Sachin Jatin Parikh, Rakesh Gupta, Nishith Rasiklal Dharia, Kunal Tushar Dharia, Suketu Navinchandra Parikh and Usha Rajnikant Shah.
| CategoryPre-IPO | |
|---|---|
| Promoter and Promoter Group | 89.20% |
| Public | 10.80% |
| Total | 100% |
Financial Performance of Prasol Chemicals (Restated, ₹ in crores)
Here's the table outlining the financial performance of Prasol Chemicals Limited from FY 2024 to FY 2026.
| Period Ended31 Mar 202631 Mar 202531 Mar 2024 | |||
|---|---|---|---|
| Total Income | 1,237.85 | 1,015.54 | 887.56 |
| EBITDA | 139.32 | 87.77 | 60.53 |
| Profit After Tax | 83.12 | 43.57 | 18.13 |
| Net Worth | 448.51 | 367.46 | 325.84 |
| Reserves and Surplus | 436.91 | 355.87 | 314.24 |
| Total Borrowing | 110.06 | 101.05 | 82.07 |
| Assets | 839.28 | 723.09 | 626.36 |
Key Performance Indicators of Prasol Chemicals
Based on the financials available in the RHP, the following key performance metrics of Prasol Chemicals IPO can be considered.
| KPIAs of FY 2026 | |
|---|---|
| Return on Equity (ROE) | 20.37% |
| Return on Capital Employed (ROCE) | 22.43% |
| Debt / Equity | 0.19 |
| Return on Net Worth (RoNW) | 18.53% |
| PAT Margin | 6.74% |
| EBITDA Margin | 11.30% |
| Net Asset Value (NAV) | ₹77.33 |
Registrar of Prasol Chemicals IPO
The Registrar of Prasol Chemicals IPO is Kfin Technologies Ltd.
Phone: 040-79615565 Email: prasol.ipo@kfintech.com
You can check the allotment status of Prasol Chemicals on https://ipostatus.kfintech.com/
Lead Manager of Prasol Chemicals IPO
DAM Capital Advisors Ltd. is the sole book-running lead manager to the Prasol Chemicals IPO.
