Specialty chemicals company Prasol Chemicals has been given the green light by financial markets regulator Sebi to raise up to Rs 800 crore through an initial public offering (IPO). The IPO includes a new issuance of equity shares aggregating up to Rs 250 crore and an offer to sell (OFS) of up to 90 lakh of equity shares by existing shareholders, according to the draft Red Herring prospectus (DRHP).

Prasol Chemicals, which filed its preliminary IPO documents with the regulator in April, obtained its “observation” letter on August 23, an update with the Securities and Exchange Board of India (Sebi ).

In Sebi parlance, his observation implies his green light to initiate the initial stock sale.

According to the draft documents, the company may consider a new issuance of equity shares totaling up to Rs 50 crore. If such placement is completed, the size of the new number will be reduced.

According to market sources, the company is likely to raise around Rs 700-800 crore through the IPO.

The proceeds from the new issue to the tune of Rs 160 crore will be used for debt payment and Rs 30 crore for working capital requirements. In addition, the funds will be used for general corporate purposes.

Since its inception, Prasol Chemicals, an integrated manufacturer of acetone and phosphorus derivatives, has expanded its business and scope from a small-scale manufacturer to a large diversified specialty chemical company with a global presence.

Several acetone and phosphorus derivatives included in its portfolio are used in pharmaceuticals, agrochemical active ingredient synthesis and formulations, in addition to their applications in household and personal care products such as sunscreens, shampoos, flavors, perfumes and disinfectants.

The company recorded a profit of Rs 50.10 crore in the nine-month period ending December 2021, Rs 25.08 crore in FY21 and Rs 37.77 crore in FY20. Its operating income amounted to Rs 626.93 crore for the nine-month period ending December 2021, Rs 595.54 crore in the financial year 2021 and Rs 531.24 crore in the financial year 2020.

and DAM Capital Advisors are lead managers on the issue.