Prasol Chemicals Ltd will open its ₹500-crore initial public offering for subscription on September 8, 2026, with the price band fixed at ₹643-676 per equity share. The IPO will close on September 10, while bidding for anchor investors will take place on September 7.
The IPO comprises a fresh issue of equity shares worth up to ₹80 crore and an offer for sale of shares worth up to ₹420 crore by selling shareholders.
Proceeds from the fresh issue will be used for payment of debt, working capital requirements and general corporate purposes. At the upper end of the price band, Prasol Chemicals is valued at around ₹6,001 crore.
Prasol Chemicals, originally incorporated as Prachi Poly Products Private Ltd in 1992, changed its name to Prasol Chemicals in 2007 and subsequently became a public company again in 2022.
The company is a forward-integrated manufacturer of acetone and phosphorus-based specialty chemicals, along with other specialty chemicals involving complex and differentiated chemistries.
Several acetone and phosphorus derivatives in its portfolio are used in pharmaceuticals, synthesis of agrochemical active ingredients and formulations. They are also used as critical raw materials in home and personal care products such as sunscreens, shampoos, flavours, fragrances and disinfectants.
JM Financial and DAM Capital Advisors are the book-running lead managers to the issue.
Brokerage view
SBI Securities recommends investors subscribe to Prasol Chemicals’ IPO for the long term, citing its diversified specialty chemicals portfolio and status as the only manufacturer of isophorone in India. The brokerage noted that revenue, EBITDA and adjusted PAT recorded CAGRs of 18.6 per cent, 51.7 per cent and 97.8 per cent, respectively, over FY24-FY26. It expects the use of ₹60 crore from the fresh issue to repay borrowings to further reduce leverage, with the post-repayment debt-to-equity ratio expected at 0.1x versus 0.2x in FY26. SBI Securities also highlighted potential recovery in losses at the Mahad unit and future expansion plans. At ₹676, the issue is valued at 48.1x FY26 P/E based on post-issue capital; the brokerage said the issue appears reasonably valued versus peers, alongside relatively better return ratios.
Anand Rathi said Prasol Chemicals has a highly diversified product portfolio used across various application industries. The brokerage noted that long-standing customer relationships and an expanding global presence enhance revenue visibility, while customer diversification reduces dependence on any single end-market.
According to Anand Rathi, the specialty chemicals business benefits from high entry barriers driven by lengthy 1–4 year customer approval cycles, complex chemistry, high product-development costs and stringent regulatory requirements. These factors create customer stickiness and make displacement of established suppliers difficult, supporting long-term revenue visibility and competitive positioning.
On valuation, Anand Rathi said the company is seeking a P/E of 48 times based on FY26 earnings, with a post-issue market capitalisation of approximately ₹40,008 million, making the issue appear fully priced.
The brokerage also noted that the business is dependent on manufacturing facilities, where unplanned shutdowns can create disruptions in operational activities.
Overall, Anand Rathi said Prasol Chemicals’ product depth, R&D-led innovation and diversified global customer base position it to capture long-term growth opportunities in specialty chemicals. The brokerage assigned a “subscribe for long term” rating to the issue.