Maharashtra-based Prasol Chemicals, a manufacturer of acetone- and phosphorus-based specialty chemicals, is set to launch its ₹500-crore maiden public issue for subscription on September 8. According to reports from The Economic Times, the company has mobilised nearly ₹150 crore from anchor investors ahead of the IPO launch, allocating 22.19 lakh equity shares at ₹676 per share to institutional investors. The price band has been fixed at ₹643-676 per share, valuing the company at ₹4,000.8 crore at the lower end and ₹6,001 crore at the upper end of the price band. The IPO lot size is 22 equity shares and will be available in multiples thereof. JM Financial and DAM Capital Advisors have been appointed as the book-running lead managers to the issue. As per Goodreturns, the IPO consists of both a fresh issue and an offer for sale (OFS), with the fresh issue comprising 11.83 lakh shares worth ₹80 crore and the OFS consisting of 62.13 lakh shares worth ₹420 crore. The promoter group's stake will fall to 77.5% after the IPO from 89.2%.
The company has demonstrated strong institutional confidence with nearly ₹150 crore raised from anchor investors ahead of the IPO opening. According to the BSE circular, Prasol Chemicals allocated 22.19 lakh equity shares at ₹676 per share to anchor investors, with the total value of allocated shares standing at ₹149.99 crore. Notable anchor investors include Aditya Birla Sun Life Insurance Company Ltd, Tata AIA Life Insurance Company Ltd, Turnaround Opportunities Fund, ITI Mutual Fund, Tata Mutual Fund, Edelweiss Mutual Fund and Kotak Mahindra Mutual Fund. Out of the total allocation, over 10 lakh shares, or 45.34%, were allotted to domestic mutual funds through a total of eight schemes, reflecting significant institutional participation in the specialty chemicals manufacturer.
The anchor book will open for a day on September 7, while the IPO will remain open for public subscription until September 10. As reported by The Economic Times, The Hindu BusinessLine and LiveMint, the share allotment is likely to be finalised by September 11, while trading in Prasol Chemicals shares is expected to commence on September 16. The share allocation follows standard norms with 50 percent reserved for qualified institutional buyers (QIBs), 35 percent for retail investors, and 15 percent for non-institutional investors (NIIs). Refunds will be initiated on Tuesday, 15 September, with shares credited to demat accounts on the same day. According to Goodreturns, the IPO is currently trading at ₹690 per share in the unofficial market, with the grey market premium (GMP) pointing at over 2.71% gains for investors as of September 3rd. At the upper price band, retail investors will need a minimum investment of ₹14,872 for one lot of 22 shares.
Incorporated in 1992 as Prachi Poly Products Private Ltd and renamed to Prasol Chemicals in 2007, the company became a public company again in 2022. According to The Economic Times, The Hindu BusinessLine and LiveMint, Prasol Chemicals is a forward-integrated manufacturer of acetone and phosphorus-based specialty chemicals, along with other specialty chemicals involving complex and differentiated chemistries. The company has a portfolio of 150 specialty chemical products used across several industries, including performance chemicals such as lubricant additives and mining chemicals, PICA (paints, inks, construction and adhesives), pharmaceuticals, agrochemicals, and home and personal care. Several acetone and phosphorus derivatives in its portfolio are used in pharmaceuticals, synthesis of agrochemical active ingredients and formulations, and as critical raw materials in home and personal care products such as sunscreens, shampoos, flavors, fragrances and disinfectants. The company's product portfolio also includes surfactants, performance additives, ethers, esters, polymers and acids that are neither acetone- nor phosphorus-based. The company operates two manufacturing facilities in Maharashtra and exports to 69 countries, deriving over a quarter of revenue from international markets.
The acetone-based specialty chemicals segment contributed 43 percent of revenue in FY26, followed by phosphorus-based specialty chemicals at 38 percent and other specialty chemicals at 15 percent. As reported by Moneycontrol and LiveMint, Prasol Chemicals reported standalone profit of ₹83.1 crore and revenue of ₹1,232.5 crore for the fiscal year ended March 2026. On a consolidated basis, profit rose 140.3 percent to ₹43.6 crore in FY25 from ₹18.1 crore in FY24, while revenue increased 15.5 percent to ₹1,012.5 crore from ₹876.6 crore during the same period. The proceeds from the fresh issue will be used for payment of debt, working capital requirements and general corporate purposes. Of the net proceeds from the fresh issue, ₹60 crore will be used to repay debt against outstanding indebtedness of ₹343.7 crore as of July 15, 2026, while the remaining proceeds will be used for general corporate purposes. Capacity utilization at the Mahad plant improved to 44.1% in FY26 from 12.7% in FY24, though it remains relatively low.
