Chemspec Chemicals obtains go-ahead from Securities and Exchange Board of India (Sebi) for the initial public offering (IPO). The Rs 700-crore IPO of Chemspec Chemicals is entirely an offer for sale by promoters, according to the draft red herring prospectus (DRHP).

The company is looking to raise Rs 700 crore through a complete offer for sale (OFS) by existing promoters Bhaichand Amoluk Consultancy Services (Rs 233 crore), Mitul Vora (Rs 233 crore) and Rushabh Vora (Rs 233 crore).

Chemspec Chemicals is one of the leading manufacturers of critical additives for FMCG ingredients used in skin and hair care products and intermediates for pharmaceutical APIs used in anti-hypertension drugs.

As part of its FMCG product portfolio, it manufactures active ingredients used in sunscreen lotions and creams, antibacterial soaps, anti-dandruff shampoos, and preservatives.

The company is also the largest manufacturer of ‘piroctone olamine’ in India, and the largest producer of ‘chemilide’ (an antibacterial ingredient) in the world with an approximate market share of 70% market share.

The speciality chemical maker's global distribution network in the last three financial years was spread across 43 countries in North America, Europe, the APAC region (including Japan), the Middle East and Africa.

JM Financial and Axis Capital are the lead managers to the public issue.