Prasol Chemicals IPO

Prasol Chemicals is one of India’s top forward-integrated acetone and phosphorous derivatives producers. (source: CRISIL Report)Their solutions have end uses in 4 categories: medicines, agrochemicals, home and personal care, and performance chemicals. Prasol Chemicals IPO will hit the stock market in September 2022.

About Prasol Chemicals

Prasol Chemicals has developed from a modest specialty chemical maker to a major diversified specialty chemical company with a global reach since its inception. Based on market demand, they continue to improve existing products and develop new specialist items.

As of December 31, 2021, they are a Government of India accredited Two Star Export House Company with a global distribution network spanning 45 countries in Asia, North America, and the European Union.

For the nine months ended December 31, 2021, and for Fiscals 2021, 2020, and 2019, sales from export of their goods accounted for 1,342.79 million, 1,387.20 million, 1,406.47 million, and 1,245.00 million, respectively, accounting for 21.24 percent, 23.04 percent, 26.30 percent, and 24.96 percent of their total income.

Products

They produced 75+ speciality products as part of their portfolio, and they now have 32 products in the works. Their new goods have allowed them to broaden their consumer base to include companies from a variety of industries.

They continue to invest in product development and emphasis on R&D. They keep a close eye on industry changes to guarantee that their goods continue to be relevant in assisting their customers fulfill changing market demands and boost their brand value.

They engage in collaborative product creation with their customers through R&D activities, allowing them to modify their products in accordance with customer expectations & consumer preferences while also ensuring reduced lead times. Their product line includes a number of acetone & phosphorus derivatives.

Clients

They benefit from their industry expertise and long-standing connections with customers. Their clients are such as PI Industries, Bayer CropScience, Solvay Specialities India, Proctor & Gamble, Dr. Reddy’s Laboratories, Alembic Pharmaceuticals, & Coromandel International Limited.

It is critical for a manufacturer of specialty chemicals to get their products approved by customers. Arkema, Lubrizol India Private Limited, UPL Limited, Olon Active Pharmaceutical Ingredients India Private Limited, MSN Laboratories Private Limited, Oriental Aromatics Limited, Asian Paints Limited & Indoco Remedies Limited are also their clients.

Moreover, Lanxess India Private Limited, Croda India Company Private Limited, Bharat Rasayan Limited, Hubergroup India Private Limited, Indian Additives Limited, Privi Speciality Chemicals Limited, Supriya Lifescience Limited, NGL Fine – Chem Limited and Everest Organics Limited are also associate with them.

Prasol Chemicals IPO

Prasol Chemicals Limited, headquartered in Delhi has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 250 Crore and 9,000,000 Equity Shares on 13 April 2022.

The offer includes a fresh issue 250 crore and there is offer for sale (OFS) of 9,000,000 Equity Shares by the promoters mentioned in the DRHP. They are also looking for a Pre-IPO placement of 50 Crore in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	31-Dec-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	581.15	549.72	463.64	412.07
Total Revenue	632.19	602.14	534.72	498.87
Profit After Tax	50.10	25.08	37.77	23.72

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	17.30	17.30	3
Financial Year 2020	26.05	26.05	2
Financial Year 2019	16.36	16.36	1
Weighted Average	20.06	20.06
30 Sep. 2021	34.55	34.55

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the Offer Price:

• One of India’s top forward-integrated manufacturers of acetone and phosphorous derivatives.
• A focus on research and development allows for a diverse product line and individualised customer solutions.
• Long-term consumer ties with a diverse clientele.
• Strong presence on the international stage.
• Long-term sustainability is emphasised through a variety of environmentally beneficial measures.
• The Promoters’ and Top Management Team’s Expertise.
• Consistent financial results of the company.

Prasol Chemicals Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Atul Limited	82.67
2	5	Borosil Renewables Limited	80.45
3	5	Fine Organics Industries Limited	107.94
4	10	Neogen Chemicals Limited	120.55
5	10	Privi Speciality Chemicals Limited	68.56
6	2	Laxmi Organic Industries Limited	82.65

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the NSE on April 11, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.

Prasol Chemicals IPO Details

IPO Opening Date	September 2022
IPO Closing Date	September 2022
Issue Type	Book Building
Face Value	2 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	–
Fresh Issue	250 Crore
Offer for Sale	9,000,000 Equity Shares

Prasol Chemicals IPO Date

Prasol Chemicals Limited IPO opening date is September 2022, and the closing date is September 2022. The Prasol Chemicals issue may list in September 2022.

IPO Opening Date	September 2022
IPO Closing Date	September 2022
Basis of Allotment Date	September 2022
Initiation of Refunds	September 2022
Credit of Shares to Demat Account	September 2022
IPO Listing Date	September 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Prasol Chemicals Limited IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Prasol Chemicals IPO.

Prasol Chemicals IPO GMP

Prasol Chemicals Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
September 2022
September 2022
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September 2022
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Prasol Chemicals Limited IPO Review

Prasol Chemicals Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Prasol Chemicals IPO is good or bad.

Prasol Chemicals Limited IPO Risk

• The level to which the COVID – 19 outbreak will have an affect on their business will be determined by future events, which are unknown & unpredictable.
• Their company & demand for their products are both dependent on the success of their clients’ products with end consumers, and any decrease in demand for the end products could hurt their bottom line.
• They are subject to stringent quality criteria, as well as regular inspections & audits, and their goods’ success and general acceptance are heavily reliant on their quality controls & standards.
• They do not have long-term agreements with the majority of their suppliers or customers, and the loss of one or more of them, and a decrease in demand for their products, would be disastrous.

Other Threats

1. They face risks associated with exporting their products to 45 countries and doing business worldwide, such as foreign market circumstances and regulatory hazards.
2. Their inability to effectively forecast product demand and manage inventory and working capital balances may have a negative impact on their business, results of operations, and financial condition.
3. Their activities rely on the timely and cost-effective availability of shipping and other logistic services, and any protracted disruption could have a negative impact on their operations.
4. Any increase in the cost of their raw materials or other purchases, or a shortage of raw materials, could have a negative impact on the pricing and supply of their products, as well as their company, results of operations, and financial condition.

Prasol Chemicals Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Prasol Chemicals IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Prasol Chemicals Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
September 2022	1
September 2022	2
September 2022	3

Prasol Chemicals Limited Management

They are led by a competent and experienced Board of Directors and key management people, all of whom they feel have deep domain knowledge and understanding of the global generic business environment, as well as the competence and vision to organically scale up their company.

Their executive directors have decades of combined industry experience. They also credit their success to their Promoters and top management team’s experience.

Nishith Rajnikant Shah, Gaurang Natwarlal Parikh, Dhaval Nalin Parikh, Pankil Nishith Dharia, Rakesh Gupta, Sachin Jatin Parikh, Suketu Navinchandra Parikh, Kunal Tushar Dharia, and Nishith Rasiklal Dharia have all played a key role in their company’s growth and development. Their business acumen has benefited their company as a result of their experience.

Prasol Chemicals Limited‘ Promoters

• Nishith Rajnikant Shah
• Gaurang Natwarlal Parikh
• Dhaval Nalin Parikh
• Pankil Nishith Dharia
• Sachin Jatin Parikh
• Rakesh Gupta
• Nishith Rasiklal Dharia
• Kunal Tushar Dharia
• Suketu Navinchandra Parikh

Promoter’s Holding

Pre Issue Share Holding	62.07%
Post Issue Share Holding

Prasol Chemicals Limited Prospectus