Security and Exchange Board of India (SEBI) has approved Prasol Chemicals to raise as much as Rs 800 crore through an Initial Public Offering (IPO). According to the Draft Red Herring Prospectus (DRHP), a preliminary legal prospectus, the IPO comprises a fresh issue of equity shares up to Rs 250 crore and an Offer-For-Sale (OFS) of up to 90 lakh equity shares by existing stakeholders.

Prasol Chemicals filed its preliminary IPO papers with the market regulator in April. On August 23, it obtained its ‘observation letter’. On Monday, SEBI gave assent to launch the initial share sale. DAM Capital Advisors and JM Financial are the book-running lead managers to the issue.

By the draft papers, the company may still consider a further issue of equity shares up to Rs 50 crore. In case such a placement is done, the fresh issue size is going to be decreased. The proceeds from the fresh issue of Rs 160 crore and Rs 30 crore are going to be used for debt payment and working capital requirements, respectively. Funds would, however, be used for general corporate purposes also.

Headquartered in Mumbai, Prasol Chemicals has gained a foothold in the global chemical space by serving various sectors ranging from Agrochemicals, Paints & Coatings, Personal Care etc. The firm is a forward-integrated manufacturer of acetone and phosphorus derivatives.

The company recorded a profit of Rs 50.10 crore in the nine months ended December 2021. It registered a profit of Rs 25.08 crore in FY21 and Rs 37.77 crore in FY20. Its revenue from operations remained at Rs 595.54 crore in fiscal 2021 and Rs 531.24 crore in fiscal 2020.