These days, specialty chemical stocks are in a lot of discussion, because such fundamentally strong stocks are growing well. Recently, veteran investor Ashish Kacholia has increased his stake in Yasho Industries by 0.2%. This specialty chemical stock has given multibagger returns in the last 2 years.
Now Mumbai-based company Prasol Chemicals Limited has taken an important step towards bringing its IPO. The company has submitted the Draft Red Herring Prospects (DRHP) with the market regulator SEBI. In such a situation, it is believed that soon its IPO will be launched.
Prasor Chemicals is one of the largest manufacturers of Acton Derivatives and Phosphorous Derivatives in India. The company wants to raise Rs 700-800 crore through this IPO. This IPO will have both fresh issue and offer for sale. The IPO will have a fresh issue of Rs 250 crore and offer for sale of 90 lakh shares. JM Financial and DAM Capital Advisors Limited are the book managers of the issue.
Under the offer for sale, the promoters and existing shareholders of the company will sell their stake. According to the news of Moneycontrol, in the offer for sale, Usha Rajinikanth Shah will sell 16.5 lakh shares, Nishith Rasiklal Dharia 8.7 lakh shares and Gaurang Natwarlal Parikh 6.30 lakh shares, Bhishma Kumar Gupta and Deepti Nalin Parikh 5 lakh shares.
What will the company do with this money?
The company has said that it will use Rs 160 crore of funds from the fresh issue for repayment and prepayment of some of its debt and Rs 30 crore will be used for general corporate activities. As of December 2021, the company has outstanding borrowings of Rs 279.29 crore.
Important information about the company
Prasol Chemicals has a distribution network in 45 countries in Asia, North America and the European Union. Here the company sells its Actone and Phosphorus derivatives and these are used to make pharma products and agrochemical active ingredients. Its products are used as raw material in homes and in personal care products such as sunscreens, shampoos, flavours, fragrances etc.