Mumbai: Prasol Chemicals Limited, an R&D-focused specialty chemicals company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for a proposed ₹500 crore initial public offering (Prasol Chemicals IPO).
The Prasol Chemicals IPO comprises a fresh issue of equity shares aggregating up to ₹80 crore and an offer for sale worth ₹420 crore by existing shareholders.
Prasol Chemicals IPO: Issue Details and Fund Utilization
The net proceeds from the fresh issue will be utilized towards the repayment of ₹60 crore in borrowings and for general corporate purposes.
This deleveraging is expected to strengthen the company’s financial position and support future growth.
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Diversified Specialty Chemical Portfolio
Founded in 1992 and headquartered in Navi Mumbai, Prasol Chemicals is an integrated manufacturer specializing in acetone- and phosphorous-based chemicals, along with other complex derivatives.
The company’s product range includes over 150 specialty chemicals across 21 acetone-based, 53 phosphorous-based, and 76 other customized formulations such as surfactants, esters, ethers, and polymers.
As of July 31, 2025, the company served 1,107 customers and exported to 69 countries. Prasol Chemicals holds the Government of India’s 3-Star Export House certification, underlining its export strength across APAC, North America, South America, and Europe.
R&D Capabilities and Global Competitiveness
Prasol Chemicals has 40 new products under development, nine of which have cleared the pilot stage. The company competes with leading global manufacturers such as Arkema, Evonik, Solvay, TASCO, Hubei Xingfa, and Excel Industries.
In India, competition remains limited due to the niche nature of acetone-based specialty chemicals.
Prasol Chemicals IPO: Strong Customer Base and Expansion Plans
The company has established strong partnerships with marquee clients including Alembic Pharmaceuticals, Bharat Rasayan, Clean Science and Technology, Croda India, Coromandel International, Gharda Chemicals, GSP Crop Science, Lubrizol India, Rossari Biotech, and Supriya Lifescience.
To meet rising demand across application industries, Prasol Chemicals plans to expand capacity at its Khopoli and Mahad manufacturing units in Maharashtra. The company also aims to set up a dedicated application testing laboratory for lubricant additives, construction, and mining chemicals.
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Prasol Chemicals’ FY25 Financial Performance
For FY25, Prasol Chemicals reported a 15.5% increase in revenue from operations to ₹1,012.49 crore, compared to ₹876.56 crore in FY24.
Operating EBITDA surged by 44.9% to ₹87.76 crore, while Profit After Tax (PAT) more than doubled to ₹43.56 crore from ₹18.13 crore in the previous year, reflecting efficiency gains and improved margins.
Industry Outlook and Market Potential
The global specialty chemicals market, accounting for 20% of the chemical industry in 2024, is expected to grow at a CAGR of 8% to reach $1,748 billion by 2029.
Market share is projected to expand to 21–23%, driven by demand for tailored and high-performance solutions.
Prasol Chemicals IPO: Issue Management and Listing Details
DAM Capital Advisors Limited is the sole Book Running Lead Manager for the Prasol Chemicals IPO, while KFin Technologies Limited will act as the Registrar. The company’s equity shares are proposed to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
