The price band has been fixed at ₹643-676 per equity share. Retail investors can apply for a minimum of one lot, comprising 22 shares, requiring an investment of ₹14,872 at the upper price band.
Prasol Chemicals IPO: GMP today
In the unlisted market, shares of Prasol Chemicals are commanding a grey market premium (GMP) of ₹55 today, indicating a potential listing gain of around 8% over the upper end of the IPO price band.
However, GMPs are only an indication of investor sentiment in the unlisted market and can change rapidly. They should not be considered a reliable indicator of the stock’s actual listing price.
Prasol Chemicals IPO: Anchor book
Ahead of the IPO opening, Prasol Chemicals mobilised nearly ₹150 crore from anchor investors on Monday.
The company allotted 22.19 lakh equity shares to anchor investors at ₹676 per share, according to a circular uploaded on the BSE website. The total value of the allocation stood at ₹149.99 crore.
The anchor investors included Aditya Birla Sun Life Insurance Company, Tata AIA Life Insurance Company, Turnaround Opportunities Fund, ITI Mutual Fund, Tata Mutual Fund, Edelweiss Mutual Fund and Kotak Mahindra Mutual Fund.
Of the total anchor allocation, more than 10 lakh shares, or 45.34%, were allotted to domestic mutual funds through eight schemes.
Prasol Chemicals IPO: Should you subscribe?
SBI Securities has recommended investors subscribe to the issue for the long term.
The brokerage said Prasol Chemicals is a highly diversified speciality chemicals player and the only manufacturer of isophorone in India. It noted that the company’s revenue, EBITDA and adjusted PAT recorded CAGRs of 18.6%, 51.7% and 97.8%, respectively, between FY24 and FY26.
The brokerage said the company plans to use ₹60 crore of the fresh issue proceeds to repay borrowings, which would further strengthen its balance sheet. SBI Securities expects the debt-to-equity ratio to decline to 0.1x post repayment from 0.2x in FY26.
It also highlighted the potential recovery in losses at the Mahad unit and the company’s expansion plans as positive factors.
At the upper price band of ₹676, the issue is valued at around 48.1 times FY26 earnings, based on post-issue capital. SBI Securities said the valuation appears reasonable compared with peers, alongside relatively better return ratios.
Anand Rathi has also assigned a Subscribe for Long Term rating to the issue.
The brokerage said Prasol Chemicals is a forward-integrated manufacturer of acetone and phosphorus-based speciality chemicals, with a diversified product portfolio serving multiple end-use industries.
It highlighted the company’s long-standing customer relationships and expanding global presence, which it said should improve revenue visibility. Customer diversification also reduces dependence on any single end-market.
According to Anand Rathi, the speciality chemicals business benefits from high entry barriers, including lengthy one-to-four-year customer approval cycles, complex chemistry, high product-development costs and stringent regulatory requirements. These factors can create customer stickiness and make it difficult for established suppliers to be displaced.
However, the brokerage flagged valuation concerns, noting that the company is seeking a P/E multiple of around 48 times FY26 earnings, making the issue appear fully priced.
It also cautioned that the business is dependent on manufacturing facilities, where unplanned shutdowns could disrupt operations.
Despite these risks, Anand Rathi said Prasol Chemicals’ product depth, R&D-led innovation and diversified global customer base position it well for long-term growth.
Prasol Chemicals IPO: Key details
The public offer comprises a fresh issue of equity shares worth up to ₹80 crore and an offer for sale (OFS) of shares worth up to ₹420 crore by existing selling shareholders.
The company plans to use proceeds from the fresh issue towards debt repayment, working capital requirements and general corporate purposes.
Prasol Chemicals was originally incorporated as Prachi Poly Products Pvt Ltd in 1992. It changed its name to Prasol Chemicals in 2007 and subsequently became a public company again in 2022.
The company is a forward-integrated manufacturer of acetone and phosphorus-based speciality chemicals, along with other speciality chemicals involving complex and differentiated chemistries.
Its products are used in pharmaceuticals, agrochemicals and several consumer applications. Acetone and phosphorus derivatives in its portfolio are also used as critical raw materials in products such as sunscreens, shampoos, flavours, fragrances and disinfectants.
The tentative listing date for the shares on the BSE and NSE is September 16, 2026.
