Mumbai-based speciality chemical compounds firm Prasol Chemicals, producer of acetone derivatives and phosphorus derivatives in India, has filed a draft purple herring prospectus (DRHP) with market regulator SEBI for an preliminary public providing (IPO). The preliminary share sale with a face worth of Rs 2 per fairness share contains contemporary concern of fairness shares aggregating as much as Rs 250 crore and an offer-for-sale (OFS) of as much as 90 lakh fairness shares by current shareholders. The firm, in a separate press assertion, stated that it’s prone to increase about Rs 700-800 crore from the IPO, citing unidentified market sources.
Back of the envelope calculations present that shares could also be issued at as much as about Rs 611 per piece, going by 90 lakh shares to be bought in OFS price as much as Rs 550 crore, excluding the contemporary fairness concern of Rs 250 crore. The OFS consists of as much as 16.5 lakh shares by Usha Rajnikant Shah, upto 8.7 lakh shares by Nishith Rasiklal Dharia, upto 6.30 lakh by Gaurang Natwarlal Parikh, as much as 5 lakh shares every by Bhisham Kumar Gupta and Dipti Nalin Parikh.
The Offer is being made via the Book Building Process, whereby no more than 50% of the provide shall be out there for allocation to Qualified Institutional Buyers, not lower than 15% allocation to Non-Institutional Bidders and never lower than 35% allocation to Retail Individual Bidders, the official launch stated. The firm, in session with the lead bankers to the problem might think about an extra concern of fairness shares aggregating as much as Rs 50 crore. If such placement is accomplished, the contemporary concern dimension shall be diminished, it added.
The proceeds from the contemporary concern shall be utilised to the tune of Rs 160 crore for compensation or prepayment, in full or a part of sure borrowings of the corporate, Rs 30 cr for capital necessities and for basic company functions, the corporate stated. JM Financial Limited and DAM Capital Advisors Limited are the book-running lead managers and Kfin Technologies is the registrar to the provide.
Prasol Chemicals clocked a revenue of Rs 50.10 crore within the nine-month interval ended December 2021 towards Rs 25.08 crore in FY21. Whereas income from operations was Rs 626.93 crore for a similar interval towards Rs 595.54 crore in FY21. As on Dec 2021, Export gross sales contribute 21.24% of its revenues and prime 10 shoppers contribute 17.78%.
Prasol Chemicals has a distribution community spanning 45 nations throughout Asia, North America and the European Union, the discharge stated, including that acetone and phosphorus derivatives included in its portfolio are utilized in prescription drugs and synthesis of agrochemical lively components. The firm has expanded its enterprise and scope of operations.
As of December 31, 2021, Prasol Chemicals had a portfolio of greater than 140 merchandise and a pipeline of 32 merchandise underneath improvement. In the final three monetary years and 9 months interval, it has launched 38 merchandise. It is planning to increase manufacturing capacities, diversify product choices, improve deal with R&D and likewise deal with import substitution in addition to growing exports.
Source: www.financialexpress.com”