Prasol Chemicals Ltd IPO
Status: Closed
Overview
IPO date
08 Sept 2026 to 10 Sept 2026
Face value
₹ 2 per share
Price
₹ 643 to ₹676 per share
Issue Size
7,396,449 shares
(aggregating up to ₹ 500 Cr)
(aggregating up to ₹ 500 Cr)
Allotment Date
11 Sept 2026
Listing at
NSE
Issue type
Book Building
Sector
Chemicals
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T&C*
Strengths vs Risks of Prasol Chemicals Ltd
Know the pros & cons
Strengths
- Highly diversified product portfolio used across various Application Industries.
- Well established R&D capabilities driving innovation with strong pipeline of products to address customised customer requirements.
- Long standing relationships with a diversified customer base and strong global presence.
- Experienced, Qualified and Professional Leadership Team with a focus on business sustainability.
- Robust financial performance.
Risks
- The company's business is dependent on its manufacturing facilities and the company is subject to certain related risks. For instance, MPCB, in the past had directed it to shut-down the company's manufacturing facilities situated at Khopoli, Maharashtra and Mahad, Maharashtra. Unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in its manufacturing operations or under - utilization of the company's manufacturing capacities could have an adverse effect on its business, results of operations, cash flows and financial condition.
- Some of the raw materials that the company uses, certain by products that are generated, as well as its finished products are hazardous, corrosive and flammable and requires expert handling and storage, as applicable. Any accidents may result in loss of life or property and disrupt the company operations which may have an adverse effect on its results of operation, cash flows and financial condition.
- There are outstanding litigations involving the Company, Promoters and Directors, and any adverse outcome in any of these proceedings may adversely affect its results of operations and financial condition.
- The company's net cash from operating activities has significantly moved in the past. Any significant fluctuation in its cash flow from operating activities or negative net cash flow from operating activities in the future could have an adverse impact on the company's growth prospects, financial condition and the trading price of the Equity Shares.
- The Deputy Director, Industrial Safety & Health, Raigad District has issued show cause notices against Gaurang Natwarlal Parikh (in his capacity as occupant of the Company), one of the Promoters of the Company alleging violation of provisions of the Factories Act, 1948. While its cannot assess any definitive financial or operational impact of this litigation, any adverse outcome in these proceedings could have a material adverse effect on the company's reputation which could in turn have a material adverse impact on its business.
- The report of the company's Statutory Auditors on the Audited Financial Statements for Fiscals 2026 and Audited Consolidated Financial Statements for Fiscal 2025 and 2024 contains emphasis of matter. Further, the report of its Statutory Auditors on the Audited Financial Statements for Fiscal 2026 and Audited Consolidated Financial Statements for Fiscal 2025 and 2024 is also modified to the extent of internal financial controls of the Company.
- The company has certain contingent liabilities and commitments, which, if materialized, may affect its financial condition and results of operations. As of March 31, 2026, March 31, 2025 and March 31, 2024 the company aggregate contingent liabilities and commitments were Rs. 1,091.22 million, Rs. 468.07 million and Rs. 675.98 million constituting 24.33%, 12.74% and 20.75% of its net worth, respectively.
- The company's business and the demand for its products is reliant on the success of the company's customers products with end consumers and any decline in the demand for the end products could have an adverse impact on its business, results of operations, cash flows and financial condition.
- The company requires a number of approvals, licences, registrations and permits to operates its business and the failures to obtain or renew these licences in a timely manner, or at all, may have an adverse effect on the company's business, results of operations and financial condition.
- Information relating to the historical installed capacity and capacity utilization of the company's manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and its future production and capacity may vary. Further, an inability to utilize the company's manufacturing facility to its full or optimal capacity, non-utilization of such capacities could have an adverse effect on the company's results of operations, cash flows and financial condition.
- Any defaults or delays in payment by a significant portion of the company's customers, may have an adverse effect on its cash flows, results of operations and financial condition.
- The Company's Price to Earnings ratio at the upper and lower end of the Price Band is at a premium as compared to the average Price to Earnings ratio of its listed peers. The company cannot assure you that its will in the future perform better than the company peers in relation to the Price to Earnings ratio. Accordingly, the investors must relies on their own examinations of accounting ratios of the Company for the purposes of investment in this Offer.
- The company operates its manufacturing facilities and Registered and Corporate Office on parcels of land that are held by the company on a leasehold basis.
- The company operations are labour intensive, and its manufacturing operations may be materially adversely affected by strikes, work stoppages or increased wage demands by the company's employees or those of its suppliers. The company's attrition rate was 27.96%, 18.07% and 36.82% during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively.
- Inability to obtain or protect the company's intellectual property rights may adversely affect its reputation and the company's business.
- The Company proposes to utilize up to Rs. 600.00 million from the Net Proceeds to repay or prepay, in full or in part, all or certain outstanding borrowings availed by the Company. Its may not be able to derives the expected benefits of the deployment of the Net Proceeds, in a timely manner, or at all.
- Some of the Directors of the Company viz., Gaurang Natwarlal Parikh, Nishith Rajnikant Shah, Dhaval Nalin Parikh and G Ramakrishnan were directors of other companies in the past which were voluntarily struck off for being inoperative.
- The company operations are dependent on continuous R&D to develop and commercialise new products and its inability to identify and understand evolving industry trends, technological advancements, customer preferences and develop new products to meet the company's customers demands may adversely affect its business. The company R&D expenditure declined from Rs. 21.58 million constituting 0.24% of its total income in Fiscal 2024 to Rs. 19.81 million constituting 0.20% of the company's total income in Fiscal 2025. In Fiscal 2026, though, its R&D expenditure increased to Rs. 33.39 million constituting 0.27% of the company's total income.
- The company faces foreign exchange risks that could adversely affect its results of operations and cash flows.
- The company has in the past entered into related party transactions and will continue to do so in the future and its cannot assure you that the company could not have achieved more favourable terms if such transactions had not been entered into with related parties.
- There have been certain delays in payment of statutory dues in the past. Any delay in payment of statutory dues in future, may result in the imposition of penalties and in turn may have an adverse effect on the company's business, financial condition, results of operation and cash flows.
- Majority of the company's directors including its independent directors does not have any experience of being a director in a listed company. This may requires them to divert their attention from the company's business concerns to understand the detailed operations of a listed company.
- The company's business is reliant on certain key customers. Its top 10 customers contributed 23.68%, 21.96% and 18.46% of the company's total revenue from operations during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. The loss of any of these customers or loss of revenue from sales to any key customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- The company does not have long-term agreements with most of its suppliers or customers and the loss of one or more of them or a reduction in their demand for the company's products could adversely affect its business, results of operations, financial condition and cash flows. Further, the company's inability to accurately forecast demand for its products or manage the company's inventory or working capital requirements may have an adverse effect on its business, results of operations and financial condition.
- The company is susceptible to risks arising out of export of its products to 69 countries and with doing business internationally, including international market conditions and regulatory risks.
- The company's inability to accurately forecast demand for its products and manage the company's inventory or working capital balances may have an adverse effect on its business, results of operations, cash flows and financial condition.
- The company operations depends on the availability of timely and cost-efficient transportation and other logistic facilities and any prolonged disruption may adversely affect its business, results of operations, cash flows and financial conditions.
- Any increase in the cost of the company's raw material or other purchases or a shortfall in the supply of its raw materials, may adversely affect the pricing and supply of the company's products and have an adverse effect on its business, results of operations and financial condition.
- The company is subject to strict quality requirements, regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon the company's quality controls and standards.
- Improper storage, processing or handling of raw material and finished goods may result in damage to such raw material or finished goods, which may adversely affect the company's business prospects, results of operations and financial condition.
- The company profitability largely depends upon the global prices of its products and on the pricing pressure resulting from competition with other players in the market. There is no assurance that the prices may sustain or further increase in the future. Any significant fall in global prices of the company's products may have a material adverse effect on its business, results of operations and financial condition.
- Tariffs or other anti-outsourcing legislation may adversely affect the company's pricing and volume of work and have an overall negative impact on its business, financial condition and results of operations.
- The company failures to keep its technical knowledge confidential could erode the company's competitive advantage.
- Non-compliance with increasingly stringent safety, health, environmental and labour laws and other applicable regulations, may adversely affect the company's business, results of operations, cash flows and financial condition. Further, its may not be able to renew or maintain the company's statutory and regulatory permits and approvals required to operates its business.
- The company's business is working capital intensive. If its experience insufficient cash flows from the company operations or is unable to borrow to meet its working capital requirements, it may materially and adversely affect the company's business and results of operations.
- The company's ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict the company access to capital and thereby adversely affect its business and results of operations.
- The Company was incorporated in 1992 and some of its corporate records relating to changes in the share capital of the Company such as buy-back of equity shares and transfers, acquisitions of Equity Shares made by its Promoters, and appointment /re-appointment of Directors, are not traceable.
- The company is dependent on its Promoters, the company's Directors, Key Managerial Personnel, and members of Senior Managerial. Failures to retain or replace them will adversely affect its business. Further, the success of the company's business depends substantially on its Promoters, Key Managerial Personnel and Senior Management. The loss of such persons, particularly the company's Promoters, could adversely affect its business, financial condition, results of operations and cash flows. Further, the company's human resources are critical to its continued success and the loss of such personnel could adversely affect the company's business.
- The company's inability to manage the expansion of its products range and manufacturing capacities and execute the company's growth strategy in a timely manner or within budget estimates, or its inability to meet the expectations to track the changing preferences of the company's customers or other stakeholders could have an adverse effect on its business, results of operations and financial condition.
- The success of the company's business and operations are dependent upon certain quality accreditations which are valid for a limited time period. An inability to renew such accreditations in a timely manner, or at all, may adversely affect its business and prospects.
- The company is susceptible to product liability claims, which may requires substantial expenditure and may adversely affect its reputation and if successful, could requires the company to pay substantial sums.
- One of the company's Promoters i.e., Usha Rajnikant Shah is unable to trace her educational documents. Accordingly, the details of her educational qualifications included in this Red Herring Prospectus are based on an affidavit provided by her.
- The company's insurance coverage may not be sufficient or adequate to protect it against all material hazards or business losses, which may adversely affect the company's business, results of operations and financial condition.
- Failures to anticipate customer preferences and requirements including by the company's customers in their Application Industries, and to identify changes in consumer preferences, evolving consumer requirements could adversely affect its business, prospects, results of operations and financial condition.
- As of July 15, 2026, the company total sanctioned and outstanding indebtedness (excluding accrued interest) was Rs. 6,509.00 million and Rs. 3,436.66 million, respectively. Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company's business, results of operations and cash flows.
- Some of the company's peers have historically performed better in relation to certain key performance indicators such as Operating EBITDA, Operating EBITDA Margin, PAT Margin, Adjusted ROAE and Adjusted ROCE during Fiscals 2024, Fiscal 2025 and Fiscal 2026. Its cannot assure you that the company will in the future perform better than its peers in relation to these key performance indicators or the other key performance indicators disclosed in this Red Herring Prospectus Accordingly, the investors must relies on their own examinations of accounting ratios of the Company for the purposes of investment in this Offer.
- The company is entitled to certain tax benefits under the various export promotion schemes of GoI. Its cannot assure you that the company will continue to be eligible to receive such tax benefits in the future.
- As part of the company's growth strategy, its intends to undertake inorganic growth through strategic acquisitions, technology acquisition/licensing or joint ventures. The company cannot assure you that its will be able to successfully integrate, manage or achieve the intended benefits of such inorganic acquisition. Any difficult to integrate, manage, and / or non-performance of any of the company's strategic acquisitions, technology acquisition/licensing or joint ventures could adversely affect its business, cash flows and financial condition.
- Any time or cost overrun in setting up or expanding the company's Manufacturing Facilities could have an adverse impact on its prospects, operations, cash flows and financial condition.
- The company's inability to maintain adequate internal controls, in particular pertaining to information and reporting systems, may affect its ability to effectively manage the company operations which may adversely affect its business, financial conditions and results of operations.
- This Red Herring Prospectus contains certain forward-looking statements and estimates. If these statements or estimates prove to be inaccurate, the company's prospects, operations, cash flows, and financial condition may be adversely affected.
- Fraud, theft, employee negligence or similar incidents may adversely affect the company's results of operations and financial condition.
- Significant disruptions of information technology systems or breaches of data security could adversely affect the company's business.
- Regulatory, legislative or self-regulatory developments regarding privacy and data security matters could adversely affect the company's ability to conduct its business and impact the company's financial condition.
- The company failures to comply with trade restrictions such as economic sanctions and export controls could negatively impact its reputation and results of operations.
- The company's Promoters and certain of its Directors may be interested in the Company other than remuneration and reimbursement of expenses.
- The company's Promoters will be able to exercise significant influence and control over the Company after this Offer and may have interests that are different from those of its other shareholders.
- Certain sections of this Red Herring Prospectus contain information from CARE Report which has been exclusively commissioned and paid for by the Company.
- The company cannot assure payment of dividends on the Equity Shares in the future. Its ability to pay dividends in the future will depends upon the company's earnings, financial condition, cash flows and capital requirements.
- Significant differences exist between Ind AS and other accounting principles, such as U.S. GAAP and IFRS, which may be material to the Restated Financial Information prepared and presented in accordance with SEBI ICDR Regulations contained in this Red Herring Prospectus.
- Certain non-GAAP financial measures and certain other statistical information relating to the company operations and financial performance such as Operating EBITDA, Operating EBITDA margin, PAT margin, Adjusted RoAE, Adjusted RoCE and Net Debt to Equity have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable.
- Any variation in the utilisation of proceeds from the Fresh Issue shall be subject to applicable law.
- The Company will not receive any proceeds from the Offer for Sale.
Prasol Chemicals Ltd Peer Comparison
Understand the company’s industry standing
Prasol Chemicals Ltd
Aarti Industries Ltd
Atul Ltd
Face Value
2
5
10
Standalone / Consolidated
Consolidated
Consolidated
Consolidated
Total Income Rs. Cr.
1232.59
8286
6273.54
EPS-Basis
14.33
11.56
230.25
EPS-Diluted
14.33
11.55
230.25
NAV Per Share
77.33
164.27
2136.46
P/E-Basic EPS
---
46.79
28.04
P/E-Diluted EPS
---
46.75
28.04
RONW(%)
18.53
7.04
10.95
Latest NAV Period
---
---
---
Latest NAV
---
---
---
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The IPO opens on 08 Sept 2026 & closes on 10 Sept 2026.
Prasol Chemicals Ltd. was originally incorporated as 'Prachi Poly Products Private Limited' dated January 24, 1992 at Mumbai. The Company name was changed to 'Prachi Poly Products Limited' on January 10, 1995 by the RoC. The name then changed to 'Prasol Chemicals Limited' on March 26, 2007. Later on, the name was changed to Prasol Chemicals Private Limited and consequently, changed again to Prasol Chemicals Limited with effect from February 4, 2022.
The Company's operations are out of its plants located at Khopoli and Mahad in the State of Maharashtra. Presently, it deals in the business of Manufacturing and Trading of Speciality Chemicals. The Company is among the leading forward integrated manufacturers of acetone derivatives and phosphorous derivatives in India. Several acetone and phosphorus derivatives are included in their product portfolio, which are used in synthesis of agrochemical active ingredients (technicals) and formulations.
In 1996, the Company had diversified into phosphorus-based products for agrochemicals and performance chemicals. In 2003, it founded organic based technology platform for Agrochemicals, Performance chemicals, and entered into Home & Personal Care segment. In 2007, it ventured into pharmaceutical segment with phosphorus-based products.
The Company launched new acetone derivatives for agro chemicals, home & personal care, pharmaceuticals and performance chemicals in year, 2009. Further, it entered into antioxidants and antiwear industry for lubricants in 2011. In year 2015-17, it acquired land in Saykha Industrial Area, Gujarat and Mahad, Maharashtra on a leave and licence basis.
Apart from these, a cogeneration power plant was established in Khopoli in 2019. In 2020, it expanded global global footprint to 45 countries and commissioned new business site at Mahad for agrochemicals intermediates.
The Company is planning to raise capital from Public by raising Rs. 250 crore Equity Shares through Fresh Issue and 9,00,000 Equity Shares through Offer for Sale.
Prasol Chemicals Ltd IPO will close on 10 Sept 2026.
- Highly diversified product portfolio used across various Application Industries.
- Well established R&D capabilities driving innovation with strong pipeline of products to address customised customer requirements.
- Long standing relationships with a diversified customer base and strong global presence.
- Experienced, Qualified and Professional Leadership Team with a focus on business sustainability.
- Robust financial performance.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Usha Rajnikant Shah (held joi | 6880000 | 11.86 | 5104853 | 8.63 |
| 2 | Gaurang Natwarlal Parikh (held | 5200000 | 8.97 | 4676998 | 7.9 |
| 3 | Nishith Rasiklal Dharia (held | 4980000 | 8.59 | 4506628 | 7.61 |
| 4 | Sachin Jatin Parikh (held joi | 200000 | 3.45 | 1526628 | 2.58 |
| 5 | Dhaval Nalin Parikh | 1800000 | 3.1 | 1800000 | 3.04 |
| 6 | Kunal Tushar Dharia (held joi | 1800000 | 3.1 | 1800000 | 3.04 |
| 7 | Usha Rajnikant Shah (held joi | 600000 | 1.03 | 600000 | 1.01 |
| 8 | Suketu Navinchandra Parikh ( | 350000 | 0.6 | 261243 | 0.44 |
| 9 | Rakesh Gupta (held jointly wit | 200000 | 0.34 | 200000 | 0.34 |
| 10 | Nishith Rajnikant Shah (held | 100000 | 0.17 | 100000 | 0.17 |
| 11 | Pankil Nishith Dharia (held j | 20000 | 0.03 | 20000 | 0.03 |
| 12 | Dipti Nalin Parikh | 4200000 | 7.24 | 4200000 | 7.1 |
| 13 | Shah Sandhya Nishith (held jo | 3120000 | 5.38 | 3120000 | 5.27 |
| 14 | Tushar Natverlal Dharia (held | 2400000 | 4.14 | 2392308 | 4.04 |
| 15 | Sonal Nishith Dharia (held jo | 2079000 | 3.59 | 1558290 | 2.63 |
| 16 | Bhisham Kumar Gupta (held joi | 2000000 | 3.45 | 1422634 | 2.4 |
| 17 | Jatin Narendra Parikh (held j | 1300000 | 2.24 | 1300000 | 2.2 |
| 18 | Chamak Jatin Parikh (held joi | 1300000 | 2.24 | 1300000 | 2.2 |
| 19 | Tushar Natverlal Dharia HUF | 1200000 | 2.07 | 437885 | 0.74 |
| 20 | Bhisham Kumar Gupta (held joi | 1200000 | 2.07 | 1200000 | 2.03 |
| 21 | Ami Tushar Dharia (held jointl | 1000000 | 1.72 | 1000000 | 1.69 |
| 22 | Veenu Rakesh Gupta (held join | 1000000 | 1.72 | 1000000 | 1.69 |
| 23 | Gaurang Natwarlal Parikh HUF | 1000000 | 1.72 | 725755 | 1.23 |
| 24 | Nihir Nalin Parikh | 900000 | 1.55 | 900000 | 1.52 |
| 25 | Kinjal Pankil Dharia (held jo | 800000 | 1.38 | 728995 | 1.23 |
| 26 | Shah Sandhya Nishith (held jo | 800000 | 1.38 | 800000 | 1.35 |
| 27 | Shah Sandhya Nishith (held jo | 600000 | 1.03 | 600000 | 1.01 |
| 28 | Jignasha Jay Kantawala (held | 600000 | 1.03 | 540829 | 0.91 |
| 29 | Raksha Bhisham Gupta (held jo | 400000 | 0.69 | 400000 | 0.68 |
| 30 | Suhagi Dhaval Parikh (held jo | 400000 | 0.69 | 400000 | 0.68 |
| 31 | Sundeep Navinchandra Parikh ( | 350000 | 0.6 | 298225 | 0.5 |
| 32 | Lina Suketu Parikh (held joint | 350000 | 0.6 | 342456 | 0.58 |
| 33 | Pushpa Navinchandra Parikh (h | 331250 | 0.57 | 249890 | 0.42 |
| 34 | Shruti Sachin Parikh (held jo | 200000 | 0.34 | 83137 | 0.14 |
| 35 | Tanvi Gaurang Parikh (held jo | 200000 | 0.34 | 200000 | 0.34 |
| 36 | Uma Rajan Javeri (held jointly | 24170 | 0.04 | 24170 | 0.04 |
| 37 | Riddhi Mihir Kapadia (held jo | 20000 | 0.03 | 20000 | 0.03 |
| 38 | Meghna B Gandhi (held jointly | 7825 | 0.01 | 7825 | 0.01 |
| 39 | Mira Ravitej Kapadia (held jo | 7825 | 0.01 | 7825 | 0.01 |
| 40 | Asit Rasiklal Dharia (held jo | 7245 | 0.01 | 7245 | 0.01 |
| 41 | Mahesh Naranji Thakkar (held | 7245 | 0.01 | 7245 | 0.01 |
| 42 | Sonal Nishith Dharia (held jo | 1000 | --- | 1000 | --- |
- The company's business is dependent on its manufacturing facilities and the company is subject to certain related risks. For instance, MPCB, in the past had directed it to shut-down the company's manufacturing facilities situated at Khopoli, Maharashtra and Mahad, Maharashtra. Unplanned slowdowns, unscheduled shutdowns or prolonged disruptions in its manufacturing operations or under - utilization of the company's manufacturing capacities could have an adverse effect on its business, results of operations, cash flows and financial condition.
- Some of the raw materials that the company uses, certain by products that are generated, as well as its finished products are hazardous, corrosive and flammable and requires expert handling and storage, as applicable. Any accidents may result in loss of life or property and disrupt the company operations which may have an adverse effect on its results of operation, cash flows and financial condition.
- There are outstanding litigations involving the Company, Promoters and Directors, and any adverse outcome in any of these proceedings may adversely affect its results of operations and financial condition.
- The company's net cash from operating activities has significantly moved in the past. Any significant fluctuation in its cash flow from operating activities or negative net cash flow from operating activities in the future could have an adverse impact on the company's growth prospects, financial condition and the trading price of the Equity Shares.
- The Deputy Director, Industrial Safety & Health, Raigad District has issued show cause notices against Gaurang Natwarlal Parikh (in his capacity as occupant of the Company), one of the Promoters of the Company alleging violation of provisions of the Factories Act, 1948. While its cannot assess any definitive financial or operational impact of this litigation, any adverse outcome in these proceedings could have a material adverse effect on the company's reputation which could in turn have a material adverse impact on its business.
- The report of the company's Statutory Auditors on the Audited Financial Statements for Fiscals 2026 and Audited Consolidated Financial Statements for Fiscal 2025 and 2024 contains emphasis of matter. Further, the report of its Statutory Auditors on the Audited Financial Statements for Fiscal 2026 and Audited Consolidated Financial Statements for Fiscal 2025 and 2024 is also modified to the extent of internal financial controls of the Company.
- The company has certain contingent liabilities and commitments, which, if materialized, may affect its financial condition and results of operations. As of March 31, 2026, March 31, 2025 and March 31, 2024 the company aggregate contingent liabilities and commitments were Rs. 1,091.22 million, Rs. 468.07 million and Rs. 675.98 million constituting 24.33%, 12.74% and 20.75% of its net worth, respectively.
- The company's business and the demand for its products is reliant on the success of the company's customers products with end consumers and any decline in the demand for the end products could have an adverse impact on its business, results of operations, cash flows and financial condition.
- The company requires a number of approvals, licences, registrations and permits to operates its business and the failures to obtain or renew these licences in a timely manner, or at all, may have an adverse effect on the company's business, results of operations and financial condition.
- Information relating to the historical installed capacity and capacity utilization of the company's manufacturing facilities included in this Red Herring Prospectus is based on various assumptions and estimates and its future production and capacity may vary. Further, an inability to utilize the company's manufacturing facility to its full or optimal capacity, non-utilization of such capacities could have an adverse effect on the company's results of operations, cash flows and financial condition.
- Any defaults or delays in payment by a significant portion of the company's customers, may have an adverse effect on its cash flows, results of operations and financial condition.
- The Company's Price to Earnings ratio at the upper and lower end of the Price Band is at a premium as compared to the average Price to Earnings ratio of its listed peers. The company cannot assure you that its will in the future perform better than the company peers in relation to the Price to Earnings ratio. Accordingly, the investors must relies on their own examinations of accounting ratios of the Company for the purposes of investment in this Offer.
- The company operates its manufacturing facilities and Registered and Corporate Office on parcels of land that are held by the company on a leasehold basis.
- The company operations are labour intensive, and its manufacturing operations may be materially adversely affected by strikes, work stoppages or increased wage demands by the company's employees or those of its suppliers. The company's attrition rate was 27.96%, 18.07% and 36.82% during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively.
- Inability to obtain or protect the company's intellectual property rights may adversely affect its reputation and the company's business.
- The Company proposes to utilize up to Rs. 600.00 million from the Net Proceeds to repay or prepay, in full or in part, all or certain outstanding borrowings availed by the Company. Its may not be able to derives the expected benefits of the deployment of the Net Proceeds, in a timely manner, or at all.
- Some of the Directors of the Company viz., Gaurang Natwarlal Parikh, Nishith Rajnikant Shah, Dhaval Nalin Parikh and G Ramakrishnan were directors of other companies in the past which were voluntarily struck off for being inoperative.
- The company operations are dependent on continuous R&D to develop and commercialise new products and its inability to identify and understand evolving industry trends, technological advancements, customer preferences and develop new products to meet the company's customers demands may adversely affect its business. The company R&D expenditure declined from Rs. 21.58 million constituting 0.24% of its total income in Fiscal 2024 to Rs. 19.81 million constituting 0.20% of the company's total income in Fiscal 2025. In Fiscal 2026, though, its R&D expenditure increased to Rs. 33.39 million constituting 0.27% of the company's total income.
- The company faces foreign exchange risks that could adversely affect its results of operations and cash flows.
- The company has in the past entered into related party transactions and will continue to do so in the future and its cannot assure you that the company could not have achieved more favourable terms if such transactions had not been entered into with related parties.
- There have been certain delays in payment of statutory dues in the past. Any delay in payment of statutory dues in future, may result in the imposition of penalties and in turn may have an adverse effect on the company's business, financial condition, results of operation and cash flows.
- Majority of the company's directors including its independent directors does not have any experience of being a director in a listed company. This may requires them to divert their attention from the company's business concerns to understand the detailed operations of a listed company.
- The company's business is reliant on certain key customers. Its top 10 customers contributed 23.68%, 21.96% and 18.46% of the company's total revenue from operations during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. The loss of any of these customers or loss of revenue from sales to any key customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
- The company does not have long-term agreements with most of its suppliers or customers and the loss of one or more of them or a reduction in their demand for the company's products could adversely affect its business, results of operations, financial condition and cash flows. Further, the company's inability to accurately forecast demand for its products or manage the company's inventory or working capital requirements may have an adverse effect on its business, results of operations and financial condition.
- The company is susceptible to risks arising out of export of its products to 69 countries and with doing business internationally, including international market conditions and regulatory risks.
- The company's inability to accurately forecast demand for its products and manage the company's inventory or working capital balances may have an adverse effect on its business, results of operations, cash flows and financial condition.
- The company operations depends on the availability of timely and cost-efficient transportation and other logistic facilities and any prolonged disruption may adversely affect its business, results of operations, cash flows and financial conditions.
- Any increase in the cost of the company's raw material or other purchases or a shortfall in the supply of its raw materials, may adversely affect the pricing and supply of the company's products and have an adverse effect on its business, results of operations and financial condition.
- The company is subject to strict quality requirements, regular inspections and audits, and the success and wide acceptability of its products is largely dependent upon the company's quality controls and standards.
- Improper storage, processing or handling of raw material and finished goods may result in damage to such raw material or finished goods, which may adversely affect the company's business prospects, results of operations and financial condition.
- The company profitability largely depends upon the global prices of its products and on the pricing pressure resulting from competition with other players in the market. There is no assurance that the prices may sustain or further increase in the future. Any significant fall in global prices of the company's products may have a material adverse effect on its business, results of operations and financial condition.
- Tariffs or other anti-outsourcing legislation may adversely affect the company's pricing and volume of work and have an overall negative impact on its business, financial condition and results of operations.
- The company failures to keep its technical knowledge confidential could erode the company's competitive advantage.
- Non-compliance with increasingly stringent safety, health, environmental and labour laws and other applicable regulations, may adversely affect the company's business, results of operations, cash flows and financial condition. Further, its may not be able to renew or maintain the company's statutory and regulatory permits and approvals required to operates its business.
- The company's business is working capital intensive. If its experience insufficient cash flows from the company operations or is unable to borrow to meet its working capital requirements, it may materially and adversely affect the company's business and results of operations.
- The company's ability to access capital at attractive costs depends on its credit ratings. Non-availability of credit ratings or a poor rating may restrict the company access to capital and thereby adversely affect its business and results of operations.
- The Company was incorporated in 1992 and some of its corporate records relating to changes in the share capital of the Company such as buy-back of equity shares and transfers, acquisitions of Equity Shares made by its Promoters, and appointment /re-appointment of Directors, are not traceable.
- The company is dependent on its Promoters, the company's Directors, Key Managerial Personnel, and members of Senior Managerial. Failures to retain or replace them will adversely affect its business. Further, the success of the company's business depends substantially on its Promoters, Key Managerial Personnel and Senior Management. The loss of such persons, particularly the company's Promoters, could adversely affect its business, financial condition, results of operations and cash flows. Further, the company's human resources are critical to its continued success and the loss of such personnel could adversely affect the company's business.
- The company's inability to manage the expansion of its products range and manufacturing capacities and execute the company's growth strategy in a timely manner or within budget estimates, or its inability to meet the expectations to track the changing preferences of the company's customers or other stakeholders could have an adverse effect on its business, results of operations and financial condition.
- The success of the company's business and operations are dependent upon certain quality accreditations which are valid for a limited time period. An inability to renew such accreditations in a timely manner, or at all, may adversely affect its business and prospects.
- The company is susceptible to product liability claims, which may requires substantial expenditure and may adversely affect its reputation and if successful, could requires the company to pay substantial sums.
- One of the company's Promoters i.e., Usha Rajnikant Shah is unable to trace her educational documents. Accordingly, the details of her educational qualifications included in this Red Herring Prospectus are based on an affidavit provided by her.
- The company's insurance coverage may not be sufficient or adequate to protect it against all material hazards or business losses, which may adversely affect the company's business, results of operations and financial condition.
- Failures to anticipate customer preferences and requirements including by the company's customers in their Application Industries, and to identify changes in consumer preferences, evolving consumer requirements could adversely affect its business, prospects, results of operations and financial condition.
- As of July 15, 2026, the company total sanctioned and outstanding indebtedness (excluding accrued interest) was Rs. 6,509.00 million and Rs. 3,436.66 million, respectively. Its inability to meet the company obligations, including financial and other covenants under its debt financing arrangements could adversely affect the company's business, results of operations and cash flows.
- Some of the company's peers have historically performed better in relation to certain key performance indicators such as Operating EBITDA, Operating EBITDA Margin, PAT Margin, Adjusted ROAE and Adjusted ROCE during Fiscals 2024, Fiscal 2025 and Fiscal 2026. Its cannot assure you that the company will in the future perform better than its peers in relation to these key performance indicators or the other key performance indicators disclosed in this Red Herring Prospectus Accordingly, the investors must relies on their own examinations of accounting ratios of the Company for the purposes of investment in this Offer.
- The company is entitled to certain tax benefits under the various export promotion schemes of GoI. Its cannot assure you that the company will continue to be eligible to receive such tax benefits in the future.
- As part of the company's growth strategy, its intends to undertake inorganic growth through strategic acquisitions, technology acquisition/licensing or joint ventures. The company cannot assure you that its will be able to successfully integrate, manage or achieve the intended benefits of such inorganic acquisition. Any difficult to integrate, manage, and / or non-performance of any of the company's strategic acquisitions, technology acquisition/licensing or joint ventures could adversely affect its business, cash flows and financial condition.
- Any time or cost overrun in setting up or expanding the company's Manufacturing Facilities could have an adverse impact on its prospects, operations, cash flows and financial condition.
- The company's inability to maintain adequate internal controls, in particular pertaining to information and reporting systems, may affect its ability to effectively manage the company operations which may adversely affect its business, financial conditions and results of operations.
- This Red Herring Prospectus contains certain forward-looking statements and estimates. If these statements or estimates prove to be inaccurate, the company's prospects, operations, cash flows, and financial condition may be adversely affected.
- Fraud, theft, employee negligence or similar incidents may adversely affect the company's results of operations and financial condition.
- Significant disruptions of information technology systems or breaches of data security could adversely affect the company's business.
- Regulatory, legislative or self-regulatory developments regarding privacy and data security matters could adversely affect the company's ability to conduct its business and impact the company's financial condition.
- The company failures to comply with trade restrictions such as economic sanctions and export controls could negatively impact its reputation and results of operations.
- The company's Promoters and certain of its Directors may be interested in the Company other than remuneration and reimbursement of expenses.
- The company's Promoters will be able to exercise significant influence and control over the Company after this Offer and may have interests that are different from those of its other shareholders.
- Certain sections of this Red Herring Prospectus contain information from CARE Report which has been exclusively commissioned and paid for by the Company.
- The company cannot assure payment of dividends on the Equity Shares in the future. Its ability to pay dividends in the future will depends upon the company's earnings, financial condition, cash flows and capital requirements.
- Significant differences exist between Ind AS and other accounting principles, such as U.S. GAAP and IFRS, which may be material to the Restated Financial Information prepared and presented in accordance with SEBI ICDR Regulations contained in this Red Herring Prospectus.
- Certain non-GAAP financial measures and certain other statistical information relating to the company operations and financial performance such as Operating EBITDA, Operating EBITDA margin, PAT margin, Adjusted RoAE, Adjusted RoCE and Net Debt to Equity have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable.
- Any variation in the utilisation of proceeds from the Fresh Issue shall be subject to applicable law.
- The Company will not receive any proceeds from the Offer for Sale.
The Issue type of Prasol Chemicals Ltd is Book Building.
The minimum application for shares of Prasol Chemicals Ltd is 22.
The total shares issue of Prasol Chemicals Ltd is 7396449.
Initial public offering of up to 7,396,449 equity shares of face value of Rs. 2 each (Equity Shares) of the company for cash at a price of Rs. 676 per equity share (including a share premium of Rs. 674 per equity share) (offer price) aggregating up to Rs. 500.00 crores (the offer) comprising a fresh issue of up to 1,183,431 equity shares aggregating up to Rs. 80.00 Crores by the company (fresh issue) and an offer for sale of up to 6,213,018 equity shares aggregating up to Rs. 420.00 Crores by the selling shareholders (offer for sale) comprising up to 1,775,147 equity shares aggregating up to Rs. 120 by Usha Rajnikant Shah (held jointly with Nishith Rajnikant Shah and Shah Sandhya Nishith), up to 762,130 equity shares aggregating up to Rs. 51.52 Crores by Tushar Natverlal Dharia (HUF), up to 274,260 equity shares aggregating up to Rs. 18.54 Crores by Gaurang Natwarlal Parikh HUF, up to 577,366 equity shares aggregating up to Rs. 39.03 Crores by Bhisham Kumar Gupta (held jointly with Raksha Bhisham Gupta), up to 473,372 equity shares aggregating up to Rs. 32 Crores by Nishith Rasiklal Dharia (held jointly with Sonal Nishith Dharia), up to 520,710 equity shares aggregating up to Rs. 35.2 Crores by Sonal Nishith Dharia (held jointly with Nishith Rasiklal Dharia), up to 473,372 equity shares aggregating up to Rs. 32 Crores by Sachin Jatin Parikh (held jointly with Shruti Sachin Parikh), up to 113,165 equity shares aggregating up to Rs. 7.65 Crores by Namita Tushar Parikh, up to 116,863 equity shares aggregating up to
Rs. 7.9 Crores by Shruti Sachin Parikh (held jointly with Sachin Jatin Parikh), up to 133,136 equity shares aggregating up to Rs. 9 Crores Dipak Amarshi (held jointly with Ushma Amarshi), up to 95,857 equity shares aggregating up to Rs. 6.48 Crores by Heta T Parikh, up to 523,076 equity shares aggregating up to Rs. 35.36 crores by Gaurang Natwarlal Parikh (held jointly with Tanvi Gaurang Parikh), up to 71,005 equity shares aggregating up to Rs. 4.8 Crores by Kinjal Pankil Dharia (held jointly with Pankil Nishith Dharia), up to 88,757 equity shares aggregating up to Rs. 6 Crores by Suketu Navichandra Parikh (held jointly with lina Suketu Parikh), up to 81,360 equity shares aggregating up to Rs. 5.5 Crores by Pushpa Navinchandra Parikh (held jointly with Suketu Navinchandra Parikh), up to 51,775 equity shares aggregating up to Rs. 3.5 Crores Sundeep Navinchandra Parikh (held jointly with Sheetal Sandeep Parikh), up to 7,544 equity shares aggregating up to Rs. 0.51 Crores by Lina Suketu Parikh (held jointly with Suketu Navichandra Parikh), up to 7,396 equity shares aggregating up to Rs. 0.5 Crores by Sheetal Sandeep Parikh (held jointly with Sundeep Navinchandra Parikh), up to 59,171 equity shares aggregating up to Rs. 4.00 Crores by Jignasha Jay Kantawala (held jointly with Jay Shailesh Kantawala), up to 7,692 equity shares aggregating up to Rs. 0.52 crores by Tushar Natverlal Dharia (held jointly with AMI Tushar Dharia) (collectively, selling shareholders and each such equity shares, the offered shares). The offer shall constitute [*]% of the post-offer paid-up equity share capital of the company.
Price Band: Rs. 676 per equity share of face value of Rs. 2 each.
The floor price 338 times the face value of the equity shares, respectively.
Bids can be made for a minimum of 22 equity shares of face value of Rs. 2 each and in multiples of 22 equity shares of face value of Rs. 2 each thereafter.