About the Business
Incorporated in 1992, Prasol Chemicals Limited is an established player in the Indian specialty chemicals industry with over three decades of operational track record. The company manufactures over 150 specialty chemicals, with significant specialization in acetone-based, phosphorous-based, and other complex chemical formulations. Its product catalog includes 21 acetone-based chemicals, 53 phosphorous-based chemicals, and 76 other specialty chemicals such as custom surfactants, esters, and acids.
The company’s chemicals cater to five vital end-user industries: Performance chemicals (lubricant and mining additives), PICA (paints, inks, construction, and adhesives), pharmaceuticals, agrochemicals, and home & personal care.
- Two large-scale manufacturing sites in Maharashtra across Khopoli (1,20,604 sq. m.) and Mahad (1,19,423 sq. m.) with an aggregate capacity of 98,644 MT per annum.
- Entrenched client base of 1,600+ customers, including Alembic Pharma, Lubrizol India, Rossari Biotech, Clean Science, Gharda Chemicals, Croda India, and Supriya Lifescience.
- Certified 3 Star Export House by the Government of India, exporting chemical formulations to 69 countries across APAC, Europe, and the Americas.
- Robust in-house R&D infrastructure facilitating complex chemistry and backward integration.
The company’s key promoters are 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, and Usha Rajnikant Shah.
Financial Overview
Prasol Chemicals Ltd. exhibited solid business performance, with total income expanding by 22% and profit after tax (PAT) nearly doubling with a 91% surge between FY25 and FY26.
| Metric (₹ Cr) | FY 2026 | FY 2025 | FY 2024 |
|---|---|---|---|
| Total Income | ₹1,237.85 | ₹1,015.54 | ₹887.56 |
| Operating EBITDA | ₹139.32 | ₹87.77 | ₹60.53 |
| PAT (Profit After Tax) | ₹83.12 | ₹43.57 | ₹18.13 |
| Net Worth | ₹448.51 | ₹367.46 | ₹325.84 |
| Reserves & Surplus | ₹436.91 | ₹355.87 | ₹314.24 |
| Total Borrowings | ₹110.06 | ₹101.05 | ₹82.07 |
| Total Assets | ₹839.28 | ₹723.09 | ₹626.36 |
Note: FY26 figures represent Standalone performance; prior years Restated Consolidated | Source: RHP Filings
Key Financial Metrics (FY26)
Issue Reservation
| Investor Category | Allocation Limit |
|---|---|
| QIB Shares Offered | Not more than 50% of the Offer |
| Retail (RII) Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Objects of the Issue
The net proceeds from the fresh issue segment (₹80.00 Cr) are proposed to be deployed as follows:
- Repayment and/or pre-payment, in full or part, of certain borrowings availed by the company ₹60.00 Cr
- General Corporate Purposes Balance
Prasol Chemicals Limited brings over 30 years of operating heritage, an expansive portfolio of 150+ specialty chemical products, and high export revenues from 69 countries. The company maintains a healthy financial profile with low leverage (Debt/Equity of 0.19) and steady return metrics (ROCE of 22.43%, ROE of 20.37%).
Using ₹60.00 Cr (75% of fresh issue proceeds) to repay borrowings will further enhance balance sheet strength and interest coverage. At the upper price band of ₹676, the issue commands an implied post-issue valuation of ~48x P/E against a market cap of ₹4,000.80 Cr. While priced close to peer benchmarks like Aarti Industries (46.8x) and Privi Speciality (42.7x), long-term investors seeking high-grade specialty chemicals exposure with global client stickiness can evaluate this offering.
