Prasol Chemicals IPO Review: Price Band, Dates, Lot Size, Financials and RisksPrasol Chemicals IPO Review: Price Band, Dates, Lot Size, Financials and Risks

The Prasol Chemicals IPO opens on September 8 and closes on September 10, 2026. Prasol Chemicals is a Maharashtra-based specialty chemicals manufacturer raising ₹500 crore through a fresh issue of ₹80 crore and an offer for sale of ₹420 crore by existing shareholders. This Prasol Chemicals IPO review covers the price band, lot size, financials, business model, IPO objectives, strengths, risks, and how to apply.

IPO Snapshot

Event	Date
IPO Opens	September 8, 2026
IPO Closes	September 10, 2026
Allotment Date	September 11, 2026
Refund / Fund Unblock	September 15, 2026
Shares Credited to Demat	September 15, 2026
Listing Date (BSE, NSE)	September 16, 2026

Price Band and Lot Size

Detail	Value
Price Band	₹643 to ₹676 per share
Face Value	₹2 per share
Lot Size	22 shares
Minimum Investment	₹14,146 to ₹14,872
Retail Maximum	13 lots, or 286 shares
Maximum Retail Investment	₹1,84,840 at the upper price band
Fresh Issue	₹80 crore
Offer for Sale	₹420 crore
Total Issue Size	₹500 crore
Listing	BSE and NSE

The fresh issue will bring money into Prasol Chemicals. The company plans to use up to ₹60 crore to repay or prepay certain borrowings, with the remaining amount earmarked for general corporate purposes. The ₹420 crore offer for sale will go to the selling shareholders, and Prasol Chemicals will not receive any proceeds from that portion.

What Does Prasol Chemicals Actually Do

Prasol Chemicals manufactures specialty chemicals based on acetone, phosphorus and other complex chemistries. Specialty chemicals are not produced as standard bulk commodities; they are usually made for specific applications, customer requirements and performance characteristics.

The company supplies more than 150 products to industries including pharmaceuticals, agrochemicals, paints, inks, construction adhesives, lubricants, mining, home and personal care, polymers, electronics, rubber, leather and textiles. Its portfolio includes 21 acetone-based specialty chemicals, 53 phosphorus-based specialty chemicals and 76 other specialty products.

Prasol operates two manufacturing facilities in Maharashtra:

• Khopoli, which began operations in 1995.
• Mahad, which began operations in 2020.

Together, these facilities have an installed capacity of 98,644 metric tonnes per annum. Khopoli operated at 80.29% capacity utilisation in FY26, while Mahad operated at 44.09%. Mahad’s utilisation has improved from 25.18% in FY25 and 12.72% in FY24, although the facility was non-operational from October 27, 2023, to May 3, 2024, following a gas-leakage incident and subsequent regulatory closure directions.

The company has a global customer base and sells its products in dozens of countries. Export revenue contributed 27.29% of FY26 revenue, while domestic sales contributed 72.71%. As of the RHP disclosures, Prasol had over 1,600 customers, including companies across pharmaceutical, agrochemical, lubricant, paints and home-care industries.

The Money Numbers

Metric	FY24	FY25	FY26
Revenue from Operations (₹ Crore)	876.57	1,012.49	1,232.59
Profit After Tax (₹ Crore)	18.13	43.57	83.12
Net Worth (₹ Crore)	325.84	367.47	448.51

Revenue rose from ₹876.57 crore in FY24 to ₹1,232.59 crore in FY26. Profit grew even faster, from ₹18.13 crore to ₹83.12 crore over the same period. Operating EBITDA margin improved from 6.91% in FY24 to 11.30% in FY26, while PAT margin increased from 2.07% to 6.74%.

This improvement was partly supported by better capacity utilisation at Mahad and higher sales volumes. However, the financial presentation needs to be read carefully because FY26 figures are standalone, while FY25 and FY24 figures are consolidated in the RHP’s restated financial information.

The company had total borrowings of ₹1,100.64 crore as of March 31, 2026, comprising ₹470.03 crore of non-current borrowings and ₹630.61 crore of current borrowings. After adjusting for cash and bank balances, net debt-to-equity was 0.19 times in FY26, compared with 0.23 times in FY25 and 0.22 times in FY24.

At the upper price band of ₹676 and FY26 basic EPS of ₹14.33, the IPO is valued at approximately 47.2 times earnings. At the lower price band of ₹643, the implied P/E is approximately 44.9 times. The RHP lists peer P/E ratios ranging from 17.12 times for Excel Industries to 206.68 times for Yasho Industries, with an average of 61.74 times. Prasol’s IPO valuation is below that disclosed peer average, but it is still not inexpensive in absolute terms.

Objects of the Issue

Purpose	Amount (₹ Crore)
Repayment or prepayment of certain borrowings	Up to ₹60 crore
General corporate purposes	Balance amount

The RHP states that the company may use the proceeds to repay or prepay selected term loans. The final selection can change based on factors such as interest rates, outstanding balances, prepayment conditions, lender consents and other commercial considerations.

The offer is therefore not primarily a capacity-expansion IPO. Unlike an issue where most of the money is allocated to a new plant or machinery, Prasol plans to use the majority of the fresh-issue proceeds for deleveraging.

Strengths

• More than three decades of experience in specialty chemicals, with over 150 products across multiple end-use industries.
• Diversified customer and product base reduces dependence on a single application sector.
• Export presence across multiple geographies, with exports contributing 27.29% of FY26 revenue.
• Improving profitability, with EBITDA margin rising from 6.91% in FY24 to 11.30% in FY26.
• Better utilisation at the Mahad facility after operations resumed, creating scope for operating leverage if utilisation continues to improve.
• In-house research and development capabilities, including a 37-member R&D team and a pipeline of 40 products at different development stages.
• Long customer-approval cycles in specialty chemicals can make approved suppliers harder to replace.

Risks

• The company operates in a hazardous and highly regulated industry. Environmental, safety and pollution-related issues can result in penalties, additional costs or shutdowns.
• The Mahad facility was shut down between October 2023 and May 2024 following a gas-leakage incident and regulatory directions. The RHP also refers to other environmental and labour-related regulatory matters.
• The business is dependent on acetone, yellow phosphorus and other raw materials whose prices and availability can be volatile.
• Around 65.96% of the raw-material procurement cost in FY26 came from imports, exposing the company to foreign-exchange, logistics, tariff and supply-chain risks.
• The business is working-capital intensive. Trade receivable days stood at 70 in FY26, while working-capital requirements increased from ₹83.98 crore in FY24 to ₹229.56 crore in FY26.
• The company has significant debt, and ₹60 crore of the fresh issue is proposed to be used for repayment or prepayment of borrowings rather than expansion.
• FY26 financial results are standalone, while FY25 and FY24 results are consolidated, which limits direct year-on-year comparability.
• A substantial portion of revenue is linked to customers in pharmaceuticals, agrochemicals, home and personal care, paints and other end-use markets. Weakness in these customer industries could affect demand.
• Certain historical corporate records relating to share capital changes, buybacks, transfers and director appointments are not traceable, according to the RHP.

How to Apply, through Alice Blue IPO

You can apply through Alice Blue by selecting your investor category, choosing the number of lots and submitting your bid between September 8 and September 10.

If you do not want to track subscription numbers throughout the bidding window, Alice Blue’s IPO feature can apply on your behalf. Choose your category and lot size, confirm your UPI ID, and set a subscription trigger, such as below 1x, between 1x and 5x, or above 5x. The system tracks Prasol Chemicals’ live subscription numbers and submits the application once the selected condition is met. You then receive a UPI payment request to approve. Funds are not deducted until shares are allotted.

Frequently Asked Questions