Prasol Chemicals
What they do: The company operates in the chemical industry, focusing on manufacturing and selling chemical products. It has shown consistent growth in revenue and net profit, indicating a successful business model.
By IPO Milega Research · Published · Updated
The company has shown a strong growth in revenue and net profit over the past three years, with a significant increase in total assets.
- Listing gain
- -9.76%
- Listed at ₹610
- Subscribed
- 3.47x
- Total
- Retail odds
- 56%
- 1 in 1.8
GMP is an unofficial grey market indication. GMP updated 16 Sept, 20:40 IST.
- Price band
- ₹643-676
- Lot size
- 22 shares
- Min. investment
- ₹14,872
- Issue size
- 500 Cr.
- Open8 Sept 2026
- Close10 Sept 2026
- Allotment11 Sept 2026
- Listing16 Sept 2026
Overview
Estimated from the current subscription figures. Tap a category to work it out for your application size.
- QIB
- 7.59x
- NII
- 1.89x
- Retail
- 1.79x
₹- (+0.00%)
GMP trend
Unofficial grey market quotes, times in IST
Where the money goes
- To the company
- ₹80 Cr
- Fresh issue
- To selling shareholders
- ₹420 Cr
- Offer for sale
- Repayment and/ or pre-payment, in full or part, of certain borrowings availed by our Company₹60 Cr13%
- General Corporate PurposeNot stated
- Offer for sale: goes to selling shareholders₹420 Cr88%
Outer ring: estimated gain
How the score adds up
The overall score is the average of these five, nudged by QIB demand once bidding closes.
- Financials7.0
- Performance7.0
- Flexibility8.0
- Timing7.0
- Risk4.0
The Grey Market Premium (GMP) indicates a potential gain of 5.91% on listing. This is supported by the company's strong financial fundamentals, growth trajectory, and market adaptability, despite the presence of significant risks.
Strengths2
- Projected revenue growth of 18.15% in FY25.
- CSR expenditures consistently increasing over the years.
Concerns5
- Regulatory violations leading to operational shutdowns.
- High employee attrition rate impacting operations.
- Significant contingent liabilities affecting financial stability.
- Dependence on top customers for revenue.
- Foreign exchange losses impacting profitability.
Who gets shares
- QIB50%
- NII15%
- Retail35%
- Retail Minimum14,8721 lots, 22 shares
- Retail Maximum1,93,33613 lots, 286 shares
- S-HNI Minimum2,08,20814 lots, 308 shares
- S-HNI Maximum9,96,42467 lots, 1,474 shares
- B-HNI Minimum10,11,29668 lots, 1,496 shares
| Application | Lot size | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 22 | 14,872 |
| Retail Maximum | 13 | 286 | 1,93,336 |
| S-HNI Minimum | 14 | 308 | 2,08,208 |
| S-HNI Maximum | 67 | 1,474 | 9,96,424 |
| B-HNI Minimum | 68 | 1,496 | 10,11,296 |
Timing
7.0/10The timing of the IPO appears favorable given the stable nature of the chemical industry and the company's established market presence. However, potential investors might be cautious due to the contingent liabilities and related party transactions, which could impact investor confidence.
- Time to market
- The chemical industry is generally stable, and Prasol Chemicals has a strong market presence, which supports a favorable timing for the IPO. However, the contingent liabilities and related party transactions may pose risks that could affect investor sentiment.
- How allotment works
- Basis of allotment finalized and shares credited to demat
- Market timing
- Favourable
- Time to market
- 7.0
- Listing on
- BSE, NSE
Key milestones
- 8 Sept 2026IPO Opens
- 10 Sept 2026IPO Closes
- 11 Sept 2026Basis of Allotment
- 15 Sept 2026Refunds Initiated
- 15 Sept 2026Credit to Demat Account
- 16 Sept 2026Listing Date
Financials
7.0/10- Revenue
- ₹1,238 Cr
- +21.9%
- Profit after tax
- ₹83.12 Cr
- +90.8%
- Net margin
- 6.7%
- +2.4 pts
- Assets
- ₹839 Cr
- +16.1%
- Return on equity
- 18.54
- Debt to equity
- 0.24
- Current ratio
- 1.54
- Revenue CAGR
- 82.5%
- ROCE
- 22.43%
- Return on net worth
- 18.53%
- NAV per share (₹)
- 77.33
Financial performance trend
Amount ₹ in croresThe company has shown a strong growth in revenue and net profit over the past three years, with a significant increase in total assets. However, the negative EBITDA in recent years and the high debt-to-equity ratio are concerns. The company has a robust equity base and a consistent dividend policy, which are positive indicators.
Risk
4.0/10Read this score as a safety rating: 10/10 means the lowest risk, 1/10 the highest.
Where the risks sit
- Financial risks2
- Market risks2
- Operational risks2
- Regulatory risks1
Significant operational, regulatory, and financial risks due to regulatory violations, high attrition, and contingent liabilities.
How the company offsets these
Credit rating reaffirmation and hedging strategies for foreign exchange risks.
Financial risks2
- Significant contingent liabilities affecting financial stability.
- Foreign exchange losses impacting profitability.
Market risks2
- Dependence on top customers for revenue.
- Fluctuations in raw material prices affecting costs.
Operational risks2
- Regulatory violations leading to operational shutdowns.
- High employee attrition rate impacting operations.
Regulatory risks1
- Untraceable corporate records posing regulatory risks.
Performance
7.0/10The company shows a promising growth trajectory with a projected revenue increase from Rs 47,256.80 million in FY24 to Rs 62,735.40 million by FY26. Despite facing risks such as regulatory compliance and supply chain disruptions, the company is positioned well within the specialty chemicals sector, which is experiencing steady demand.
- Historical growth
- The company has demonstrated a consistent growth pattern with a notable revenue increase projected for FY25., 18.15% in FY25
- Market comparison
- Compared to peers like Aarti Industries and Laxmi Organic Industries, the company shows a stronger growth trajectory, especially in FY25.
- Future potential
- The company is expected to continue its growth trajectory with a projected revenue of Rs 62,735.40 million by FY26.
- Operational consistency
- The company has maintained a steady growth pattern with consistent revenue increases and strategic planning to mitigate risks.
- Experience
- The management team has demonstrated experience in navigating industry challenges, as evidenced by their strategic growth projections.
- Track record
- The management has a track record of maintaining steady growth and addressing CSR obligations.
Key achievements
- 01Projected revenue growth of 18.15% in FY25.
- 02CSR expenditures consistently increasing over the years.
Flexibility
8.0/10Prasol Chemicals has a strong market adaptability due to its diversified product portfolio across multiple industries, reducing dependency on any single market. Its global presence in 69 countries and strategic partnerships further enhance its adaptability to market changes.
The company shows strong financial stability with increasing revenue, operating profit, and PAT margins over the years. Its low net debt to equity ratio and positive return on equity and capital employed indicate a solid financial position.
Prasol Chemicals exhibits operational agility through its focus on R&D, enabling the development of new products and customization for clients. Its manufacturing facilities are ISO certified and capable of handling complex chemistries, supporting operational flexibility.
Prasol Chemicals Limited demonstrates strong flexibility and adaptability, driven by its diversified product portfolio, robust financial performance, and strategic focus on R&D and market expansion.
- Product diversification
- Prasol Chemicals offers over 150 specialty chemical products, including acetone-based, phosphorous-based, and other specialty chemicals, catering to industries like pharmaceuticals, agrochemicals, and personal care.
- Future adaptability
- The company is well-positioned for future adaptability with plans to expand production capacities, focus on R&D for new product development, and strategic acquisitions to enhance capabilities.
The data on this page has been reviewed manually by the IPO Milega research team. It is not investment advice, and IPO Milega accepts no responsibility for losses arising from any investment decision. Investments in the securities market are subject to market risks. Read all the related documents, including the full prospectus, carefully before investing.