Safex may also consider a Rs. 90 crore pre-IPO placement
Safex Chemicals (India) Ltd, a specialty chemicals player with a focus on agrochemicals, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds through an Initial Public Offering (IPO).
Proceeds from the fresh issue will primarily be used for repayment or prepayment of borrowings - Rs. 255.59 crore for Safex Chemicals and Rs. 110 crore for its subsidiary Shogun Organics. The remaining funds will be utilised for general corporate purposes. The company may also consider a pre-IPO placement of Rs. 90 crore, which could reduce the size of the fresh issue.
Private equity firm ChrysCapital, which holds 44.8% of the company, will pare its stake through the OFS. ChrysCapital invested in the company in two tranches — in March 2021 and September 2022.
Safex may also consider a Rs. 90 crore pre-IPO placement, in which case the fresh issue size will be adjusted accordingly.
Axis Capital, JM Financial and SBI Capital Markets are the lead managers to the issue, while KFin Technologies is the registrar.
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