IPO Overview
Incorporated in 1992, Prasol Chemicals Limited is a forward-integrated manufacturer of acetone and phosphorus-based specialty chemicals and other specialty chemicals involving complex and differentiated chemistries. The company makes more than 150 different specialty chemicals — covering 21 acetone-based, 53 phosphorus-based, and 76 other products such as surfactants, esters, and acids — serving diverse industries including pharmaceuticals, agrochemicals, paints & coatings, home & personal care, and performance chemicals. The company operates two manufacturing facilities in Khopoli and Mahad, Maharashtra, with an aggregate production capacity of 98,644 MT per year. With over 33 years of operational history, Prasol is a certified Authorised Economic Operator with Indian Customs and holds a Government of India 3 Star Export House certification, with European REACH and Korea K-REACH registrations for some of its products.
The IPO is a Mainboard book-building issue comprising a fresh issue of ₹80 crore and an offer for sale of 62,13,006 equity shares, totalling ₹500 crore. The IPO price band is ₹643 to ₹676 per share, with a lot size of 22 shares. The IPO opens on September 8, 2026 and closes on September 10, 2026, with shares proposed to be listed on both BSE and NSE on September 16, 2026.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – Mainboard |
| Listing Exchange | BSE & NSE |
| IPO Open Date | 08 September 2026 |
| IPO Close Date | 10 September 2026 |
| Allotment Date | 11 September 2026 (Expected) |
| Refund Initiation | 15 September 2026 |
| Credit to Demat | 15 September 2026 |
| Listing Date | 16 September 2026 (Tentative) |
| Price Band | ₹643 – ₹676 per share |
| Face Value | ₹2 per share |
| Lot Size | 22 shares |
| Minimum Investment (Retail) | ₹14,872 (approx) |
| Issue Size | ₹500 crore |
| Fresh Issue | 11,83,431 shares (₹80 crore) |
| Offer For Sale (OFS) | 62,13,006 shares (₹420 crore) |
Note: The IPO is a combination of fresh issue and OFS. Promoter holding will fall from 89.2% to 77.51% after the issue.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% |
| Non-Institutional Investors (NII/HNI) | ~15% |
| Retail Individual Investors (RII) | ~35% |
OFS / Selling Shareholders
Promoters Nishith Rajnikant Shah, Gaurang Natwarlal Parikh, and family members oversee operations and are the primary selling shareholders in the OFS. The OFS component amounts to ₹420 crore out of the total ₹500 crore issue size. Only the fresh issue proceeds of ₹80 crore will flow into the company; the OFS proceeds will go directly to the selling promoters.
Objects of the Issue (Fund Utilization)
The company will receive only the fresh issue proceeds of ₹80 crore. The planned utilization is as follows:
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by the company — ₹60 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Dam Capital Advisors Ltd.
- Registrar to the Issue: Kfin Technologies Ltd.
Promoters & Management
The company’s promoters 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.
The promoter group brings over three decades of operational expertise in specialty chemicals manufacturing, with deep domain knowledge across product development, export markets, and large-scale industrial chemical production.
Company Details
Prasol Chemicals is an Indian specialty chemicals manufacturer with over three decades of operating history, producing acetone-based and phosphorus-based specialty derivatives along with other customized specialty chemicals. It sells a portfolio of 150+ products to a broad customer base of 1,600+ customers across end-use industries such as agrochemicals, pharmaceuticals, home & personal care, paints/inks/construction/adhesives, and performance chemicals, with exports to dozens of countries and manufacturing facilities in Maharashtra.
Sectors Served:
- Pharmaceuticals & Agrochemicals
- Paints, Inks, Construction & Adhesives (PICA)
- Home & Personal Care
- Performance Chemicals
- Mining & Lubricants
Key Products:
- 21 Acetone-based specialty chemicals
- 53 Phosphorus-based specialty chemicals
- 76 other products including surfactants, esters, and acids
Manufacturing Facilities:
- Two manufacturing facilities in Khopoli (1,20,604 sq. m.) and Mahad (1,19,423 sq. m.), Maharashtra, with an aggregate capacity of 98,644 MT per year.
Key Customers: Alembic Pharmaceuticals Limited, Clean Science and Technology Limited, Coromandel International Limited, and Lubrizol India Private Limited.
Certifications & Recognition:
- Government of India — 3 Star Export House
- Certified Authorised Economic Operator with Indian Customs
- Member of CHEMEXCIL
- European REACH and Korea K-REACH registrations
Financial Snapshot
| Period | Total Income (₹ Cr) | PAT (₹ Cr) |
| FY25 | ₹1,015.54 | ₹43.57 |
| FY26 | ₹1,237.85 | ₹83.12 |
Key Financial Metrics
- Revenue increased by 22% and PAT rose by 91% between FY25 and FY26.
- Operating EBITDA margin for FY26 stood at 11.30%.
- Operating cash flow remained healthy at ₹49.47 crore in FY26.
- Basic EPS: ₹14.33 | NAV per share: ₹77.33 (FY26)
- Market capitalization at upper price band: ₹4,000.80 crore
Company Strengths
- Highly diversified specialty chemicals portfolio with over 150 products serving multiple industries across different sectors.
- Distributes products to more than 1,600 customers across 69 countries spanning six continents — providing strong revenue diversification and global reach.
- Strong and improving financial performance — revenue grew 22% and PAT nearly doubled (91%) in FY26.
- Research and development efforts geared towards innovating and creating a strong product pipeline, enabling the company to continually diversify its specialty chemicals portfolio.
- Customer approvals in specialty chemicals take 1–4 years, creating strong switching barriers and making existing supplier relationships harder to replace.
- Over 33 years of operational history with an established brand and strong relationships across global markets.
Key Risks & Challenges
- Prasol Chemicals relies heavily on imported inputs, including acetone and phosphorus sourced from China and other markets — creating supply-chain risk from international disruptions and foreign-exchange risk from currency fluctuations.
- Both of the company’s manufacturing plants have previously faced shutdown orders from pollution authorities. The Deputy Director, Industrial Safety & Health, Raigad District has also issued show cause notices against the company’s promoter, alleging contravention of the Factories Act, 1948 in relation to safety and compliance at the Mahad facility.
- Total contingent liabilities and commitments as at March 31, 2026, aggregated to ₹1,091.22 million — which, if materialised, could adversely affect the company’s financial position.
- Large OFS component — ₹420 crore out of ₹500 crore goes to promoters, with only ₹80 crore flowing to the company for business use.
- Outstanding legal proceedings involving promoters and directors remain a disclosure risk for investors to consider.
- The company requires a number of approvals, licences, registrations, and permits to operate its business, many of which are granted for a limited duration — failure or delay in renewing these could adversely affect operations.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
