Gujarat Polysol Chemicals files DRHP for Rs.414 Crore IPO

Gujarat Polysol Chemicals files DRHP for Rs.414 Crore IPO Chemical manufacturer Gujarat Polysol Chemicals Ltd (GPCL) has filed its preliminary papers with Sebi to raise Rs.414 crore through an initial public offering. The initial share sale comprises a fresh issue of equity shares aggregating up to Rs.87 crore and an offer-for-sale (OFS) of equity shares aggregating up to Rs.327 crore by its promoters, according to the draft red herring prospectus. There will be no pre-IPO placement for this issue. The company will use the net proceeds towards repayment or pre-payment in full or in part of all borrowing availed by the company and general corporate purposes. Gujarat Polysol Chemicals, in its DRHP, said that the revival in consumption, meanwhile, will be driven by discretionary as well as non-discretionary spending. The non-discretionary spending refers to groceries and other essential items. Expectedly, this category remained largely unscathed during the lockdown. The recovery in 2021 is expected to be in double digit following a better start to the year as compared to 2020. Near-term prospects are favourable but the second covid wave is a risk to recovery. Rapid industrialisation in India and China is expected to drive demand for specialty chemicals. About Gujarat Polysol Chemicals Ltd.  The Gujarat-based firm is among the leading suppliers of dispersing agents in infra-tech, dye and pigments and textile and leather industries. For the financial year ended March 2021, the company reported a profit after tax of Rs.40 crore, while the total income stood at Rs.440 crore. Its restated profit for the FY 2019-21 grew at a CAGR of 76.42 per cent.