Prasol Chemicals, an integrated manufacturer of specialty chemicals, has filed its Draft Red Herring Prospectus (DRHP) with the market regulator Securities and Exchange Board of India (SEBI) for its ₹500 crore initial public offering (IPO).
The equity shares are proposed to be listed on the BSE and the National Stock Exchange of India (NSE).
The initial public offering comprises a fresh issue at a face value of ₹2 per equity share aggregating up to ₹80 crore and an offer for sale of equity shares aggregating up to ₹420 crore by the selling shareholders, totalling an offer size of up to ₹500 crore.
The net proceeds from the fresh issue are proposed to be utilised towards repayment of certain borrowings availed by the company, amounting to ₹60 crore and for general corporate purposes. The proposed repayment will help deleverage the balance sheet and strengthen its financial position.
Established in 1992 and headquartered in Navi Mumbai, Prasol Chemicals manufactures acetone and phosphorus-based speciality chemicals and other specialty chemicals involving complex and differentiated chemistries. It has 40 products which are in the pipeline at various stages of development, of which 9 have cleared the pilot stage. The company is a Government of India-certified 3 Star Export House with a network spread across countries in Asia-Pacific (APAC), North America, South America and Europe.
The company is a highly diversified specialty chemical player with over 150 specialty chemical products and 1,107 customers and exports to 69 countries, as of July 31, 2025.
Prasol competes with manufacturers such as Arkema, Evonik, TASCO, and Solvay in acetone-based specialty chemicals and Hubei Xingfa, Liaoning Ruixing, Excel industries in phosphorous derivatives, whereas in the domestic market, it faces limited competition due to the presence of a few acetone specialty chemicals manufacturers.
As on July 31, 2025, the company’s comprehensive product portfolio comprised over 150 specialty chemical products, such as 21 acetone-based, 53 phosphorous-based and 76 other customised chemicals such as surfactants, performance additives, ethers, esters, polymers and acids.
Prasol Chemicals has established long-standing relationships with a diversified and reputable customer base across domestic and international markets.
Its marquee customers include Alembic Pharmaceuticals, Bharat Rasayan, Clean Science and Technology, Croda India Company, Coromandel International, Gharda Chemicals, GSP Crop Science, Lubrizol India, Rossari Biotech, and Supriya Lifescience.
Going forward and in response to the anticipated increase in demand of our products in various Application Industries, the company proposes to debottleneck and expand its manufacturing capacities by increasing the capacity of its existing facilities at Khopoli and Mahad in Maharashtra. Additionally, it will also be developing a separate application testing laboratory for lubricant additives, construction chemicals and mining chemicals.
For the financial year ended March 31, 2025 (FY25), Prasol Chemicals Limited reported a robust performance with revenue from operations rising 15.5% to ₹1,012.49 crore, compared to ₹876.56 crore in FY24. Operating EBITDA grew by 44.9% to ₹87.76 crore from ₹60.53 crore in the previous year, reflecting improved operational efficiency and margin expansion. Profit after Tax (PAT) more than doubled to ₹43.56 crore in FY25, as against ₹18.13 crore in FY24.
Specialty Chemicals, known for their tailored applications, represented 20% of the market share of the global chemicals industry in 2024, with growth expected to reach 21–23% market share by 2029, reflecting rising demand for customized and high-performance solutions. The specialty market is expected to grow at a CAGR of 8% reaching $1,748 billion by 2029.
DAM Capital Advisors is the sole Book Running Lead Manager to the issue, and KFin Technologies is the Registrar to the Offer.
