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Anand Rathi Report
10 Key Things To Know Before Subscribing To Prasol Chemicals IPO
1. IPO dates
Prasol Chemicals IPO opens for subscription today, September 8, 2026 and closes on September 10, 2026. The shares of Prasol are tentatively scheduled to list of both NSE and BSE on Sep. 16.
2. Price band
The integrated manufacturer of specialty chemicals, has fixed a price band of Rs 643-676 per share with a face value of Rs 2 each.
3. Issue size
Prasol Chemicals is a main-board issue worth Rs 500 crore at the upper price band. It comprises a fresh issue of Rs 80 crore and an Offer For Sale (OFS) of Rs 420 crore by existing shareholders.
4. Lot size and minimum investment
Investors can bid for a minimum of 22 shares. At the upper band of Rs 676, the minimum investment works out to Rs 14,872.
5. BRLM
DAM Capital Advisors Ltd. is the book running lead manager of the issue, while KFin Technologies is the registrar to the issue.
6. Object of the issue
From the fresh issue proceeds, about Rs 80 crore will be used for:
- Repayment/prepayment of certain borrowings.
- General corporate purposes.
7. About the company
Incorporated in 1992, Prasol Chemicals is a specialty chemicals manufacturer focused on acetone-based and phosphorous-based specialty chemicals.
It has a portfolio of 150+ products, serves 1,600+ customers, and exports to 69 countries.
Key customers include Alembic Pharmaceuticals, Lubrizol India, Rossari Biotech, Clean Science, Gharda Chemicals, and Croda India.
8. Financial performance
- Revenue from operations rose to Rs 1,232.6 crore in FY26 from Rs 1,012.5 crore in FY25.
- EBITDA increased to Rs 139.3 crore from Rs 87.8 crore.
- PAT nearly doubled to Rs 83.1 crore from Rs 43.6 crore.
- EBITDA margin improved to 11.3% from 8.7%, while PAT margin rose to 6.7% from 4.3%.
9. Peer comparison
Aarti Industries, Laxmi Organic Industries,Vinati Organics, Privi Speciality Chemicals, Yasho Industries are the other listed entities in the segment
10. Key strengths, growth drivers and risks
Strengths
- Diversified portfolio of 150+ specialty chemical products.
- Presence across multiple industries including pharmaceuticals, agrochemicals, paints, adhesives, performance chemicals and personal care.
- Strong R&D capabilities with 40 products under development and 9 products already cleared pilot stage.
- Exports to 69 countries and a broad customer base of over 1,600 customers.
Growth Strategy
- Capacity expansion at Khopoli and Mahad plants.
- Commercialisation of new specialty chemical products.
- Focus on R&D-led innovation and import substitution.
- Expansion of global footprint and customer wallet share.
- Potential acquisitions, technology tie-ups and joint ventures.
Key Risks
- Manufacturing disruption risk due to concentration of facilities in Maharashtra.
- Volatility in acetone and yellow phosphorous prices.
- Working capital and receivables risk.
- Forex and export market exposure.
- Dependence on demand from end-user industries.
Anand Rathi’s view
Anand Rathi has assigned a “Subscribe for Long Term” rating, citing strong product diversification, high entry barriers, expanding global presence and improving profitability, though it notes the issue appears fairly priced at 48x FY26 earnings.
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