Prasol Chemicals files draft papers with Sebi, looking ahead to raise funds up to Rs 800 cr via IPO
Shivani Bhati | Apr 16, 2022 |
Prasol Chemicals files draft papers with Sebi, looking ahead to raise funds up to Rs 800 cr via IPO
Prasol Chemicals, a specialty chemical business, has filed preliminary paperwork with the capital markets regulator Securities and Exchange Board of India (SEBI) to raise up to Rs 800 crore through an Initial Public Offering (IPO).
According to the draught red herring prospectus, the IPO will include a fresh issue of equity shares worth up to Rs 250 crore and an offer-for-sale (OFS) of up to 90 lakh equity shares by existing shareholders (DRHP).
The corporation may contemplate issuing up to Rs 50 crore in additional equity shares. The size of the new issue will be reduced if this placement is accomplished.
The company is expected to raise roughly Rs 700-800 crore, according to market sources.
The proceeds from the new issuance would be used to pay down debt, with Rs 160 crore going to debt repayment and Rs 30 crore going to operating capital. Furthermore, monies will be used for company reasons.
The firm will also use Rs 30 crore for working capital requirements. As of December 2021, its fund based working capital limit stood at Rs 214.82 crore while non fund based limit at Rs 82.70 crore.
The company is one of India’s major forward-integrated manufacturers of acetone and phosphorus derivatives. Pharmaceuticals, agrochemicals, home and personal care, and performance chemicals are the four segments in which its goods are used.
Several acetone and phosphorus derivatives in the company’s portfolio are employed in pharmaceuticals, agrochemical active component synthesis, and formulations, in addition to serving as a crucial raw material in sunscreens, shampoos, flavours, scents, and disinfectants.
In the nine months ending December 2021, the company made a profit of Rs 50.10 crore, compared to Rs 25.08 crore in FY21 and Rs 37.77 crore in FY20.
Its revenue from operations for the nine months ended December 2021 was Rs 626.93 crore, up from Rs 595.54 crore in fiscal 2021 and Rs 531.24 crore in fiscal 2020. The issue’s book-running lead managers are JM Financial and DAM Capital Advisors.
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