Prasol Chemicals Limited, an integrated manufacturer of specialty chemicals has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). 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.
The initial public offering comprises a fresh issue at a face value of Rs 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 phosphorous based specialty 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 a 3 Star Export House with a network spread across countries in Asia-Pacific (APAC), North America, South America and Europe
Prasol competes with manufacturers such as Arkema, Evonik, TASCO, 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 few acetone specialty chemicals manufacturers.
As on July 31,2025, the company’s comprehensive product portfolio comprised of 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 reputed customer base across domestic and international markets. Its marquee customers include Alembic Pharmaceuticals Limited, Bharat Rasayan Limited, Clean Science and Technology Limited, Croda India Company Private Limited, Coromandel International Limited, Gharda Chemicals Limited, GSP Crop Science Limited, Lubrizol India Private Limited, Rossari Biotech Limited, and Supriya Lifescience Limited.
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 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 CAGR of 8% reaching $1,748 billion until 2029.
A key entry barrier in the specialty chemicals industry is the requirement to be registered and approved by the customer before any supply can commence. The approval cycle, which typically takes 1-4 years, involves extensive testing of product purities and impurities, customization to customer-specific needs, performance validation, shelf-life studies and end-use application testing.
DAM Capital Advisors Limited is the sole Book Running Lead Manager to the issue and KFin Technologies Limited is the Registrar to the Offer. The equity shares are proposed to be listed on BSE Limited (BSE) and the National Stock Exchange of India Limited (NSE).
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