IPO will list on 16 Sep'26
Prasol Chemicals Limited
Minimum Investment
₹ 14,872 / 22 shares
Our Verdict:
Neutral
- Prasol Chemicals is a specialty chemicals manufacturer with 150+ products serving paints, inks, construction, adhesives, pharmaceuticals, agrochemicals and personal care industries; revenue grew from ₹876.57 crore (FY24) to ₹1,232.59 crore (FY26), and PAT nearly doubled in FY26 alone, from ₹43.57 crore to ₹83.12 crore.
- EBITDA margin expanded from 6.91% (FY24) to 11.30% (FY26), and the balance sheet remains lightly leveraged with Debt-to-Equity around 0.19x–0.25x, though total borrowings have risen steadily from ₹82.07 crore to ₹110.06 crore over the same period.
- Operating cash flow fell sharply from ₹115.61 crore (FY24) to ₹22.26 crore (FY25) before partially recovering to ₹49.47 crore (FY26), while trade receivables grew from 18.07% to 22.51% of total income — a gap between reported profit growth and cash actually collected.
- Acetone-based and phosphorous-based specialty chemicals together made up 81.05% of FY26 revenue, meaning results remain closely tied to the pricing and demand for these two chemical families specifically.
- Consistent, accelerating revenue and profit growth, improving margins and a diversified customer/export base (1,600+ customers, 69 countries) support the fundamentals, but rising receivables, volatile operating cash flow and dependence on two chemical families are all worth weighing carefully before assuming the FY26 pace continues.
About the company
Founded in
24 Jan'92
Managing director
Gaurang Natwarlal Parikh
- Prasol Chemicals is a specialty chemicals manufacturer with a diversified portfolio of more than 150 products, serving performance chemicals, paints, inks, construction, adhesives, pharmaceuticals, agrochemicals and personal-care industries.
- The Company's revenue is significantly dependent on acetone-based and phosphorous-based specialty chemicals, which together contributed 81.05% of FY26 revenue from operations.
- Manufacturing is concentrated across two plants in Maharashtra; the Company serves more than 1,600 customers across 69 countries, with over three decades of industry experience.
- Promoters: Nishith Rajnikant Shah (Founder Chairman & Whole-time Director), Gaurang Natwarlal Parikh (Managing Director), Dhaval Nalin Parikh, Pankil Nishith Dharia, Sachin Jatin Parikh, Rakesh Gupta, Nishith Rasiklal Dharia, Kunal Tushar Dharia, Suketu Navinchandra Parikh and Usha Rajnikant Shah.
STRENGTHS
- Diversified Specialty Chemicals Portfolio: Manufactures more than 150 specialty chemical products serving paints, coatings, inks, construction, adhesives, pharmaceuticals, agrochemicals and personal care industries.
- Revenue and Profit Growth: Revenue from operations grew from ₹876.57 crore (FY24) to ₹1,232.59 crore (FY26); PAT grew from ₹18.13 crore to ₹83.12 crore over the same period.
- Broad Customer and Export Base: Serves more than 1,600 customers across 69 countries, reducing dependence on any single market or customer relationship.
- Improving Margins and Low Leverage: EBITDA margin expanded from 6.91% (FY24) to 11.30% (FY26), with a comfortable Debt-to-Equity ratio of around 0.19x–0.25x.
- Established Manufacturing Base: Operates two manufacturing plants in Maharashtra with more than three decades of industry experience.
RISK FACTORS
- Overwhelmingly OFS-Driven Structure: Of the ₹500 crore issue, only ₹80 crore is Fresh Issue; the remaining ₹420 crore (84%) is Offer for Sale, meaning most proceeds go to existing shareholders rather than the business.
- Product Concentration: Acetone-based and phosphorous-based specialty chemicals together contributed 81.05% of FY26 revenue from operations.
- § Rising Trade Receivables: Trade receivables grew from 18.07% (FY24) to 22.51% (FY26) of total income, alongside a sharp decline in operating cash flow in FY25.
- Raw Material and Import Dependency: The Company relies on imported raw materials, exposing it to supply-chain disruption and foreign-exchange risk.
- Environmental and Regulatory Compliance: Manufacturing is concentrated across two plants in Maharashtra, subject to environmental, pollution-control and chemical-industry regulatory risk.
Financials
All Values are in Cr.
Issue details
Issue type
Mainboard
Issue size
₹ ₹500 crore
Fresh Issue
₹ ₹80 crore
OFS
₹ ₹420 crore
Price range
₹ 643 - 676
Lot size
22 shares
Issue Objective
- Net Proceeds from the Fresh Issue (₹80 crore) are proposed to be used for: (i) repayment/prepayment of certain outstanding borrowings; and (ii) general corporate purposes (balance amount, capped at 25% of Gross Proceeds).
Dates
Bidding open
8 Sep'26
Bidding close
10 Sep'26
Allotment date
11 Sep'26
Refund date
15 Sep'26
Listing
16 Sep'26
IPO Reservations
Qualified institutional buyers
<50%
Non-institutional investors
>15%
Retail individual investors
>35%
Read the Offer Document (PDF)
© 2026 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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