The Securities and Exchange Board of India SEBI has approved Mumbai-based Prasol Chemicals Limited's Initial Public Offering (IPO). The company is one of India's top forward-integrated producers of acetone derivatives and phosphorous derivatives.

A fresh issue of equity shares with a face value of up to Rs250 crore and an offer-for-sale (OFS) of up to 9,000,000 equity shares by existing shareholders make up the initial share sale, which has a face value of Rs2 per equity share. The offer is being made through the book building process, in which not less than 15% of the offer must be made available to non-institutional bidders, not less than 35% of the offer must be made available to retail individual bidders, and not more than 50% of the offer must be allocated to qualified institutional buyers.

The company may opt about issuing additional equity shares for up to Rs 50 crore after consulting with the issue's lead bankers. If such a placement is successful, the size of the new issue will be decreased.

Approximately Rs 160 crore of the proceeds from the new issue would be used for repayment or prepayment, in full or in part, of certain company borrowings. Additionally, Rs 30 crore will be used to meet working capital needs and for other corporate purposes.

Prasol Chemicals’ portfolio contains a number of acetones and phosphorus derivatives that are employed in the production of agrochemical active ingredients (technicals) and formulations, in addition to serving as a vital raw material in the production of sunscreens, shampoos, flavors, and disinfectants. The company had over 140 goods in its portfolio as of December 31, 2021, and 32 more were in the pipeline for development. In the recent three fiscals and nine months period, it has launched 38 goods.

The book-running lead managers of the offer are JM Financial Limited and DAM Capital Advisors Limited, while Kfin Technologies is the registrar.