Prasol Chemicals IPO Day 2: GMP, subscription status. Should you subscribe?

The Prasol Chemicals IPO has entered Day 2 of bidding, with investors able to place their bids until September 10. While the issue has seen some investor interest, the grey market premium remains muted. The IPO is currently commanding a modest 4% premium, suggesting limited listing gains if the trend holds.

On the first day of bidding, the issue was subscribed 41% overall against the 54.43 lakh shares on offer. The IPO is a Rs 500 crore book-built issue, comprising a fresh issue of 11.83 lakh shares worth Rs 80 crore and an offer for sale (OFS) of 62.13 lakh shares worth Rs 420 crore.

The price band has been fixed at Rs 643–Rs 676 per share, with a lot size of 22 shares. At the upper price band, retail investors will need a minimum investment of Rs 14,872.


The IPO will close on September 10, with allotment expected to be finalised on September 11. Shares are proposed to list on both the NSE and BSE, with the tentative listing date set for September 16, 2026.

DAM Capital Advisors Ltd. is the book-running lead manager, while KFin Technologies Ltd. is the registrar to the issue.

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Prasol Chemicals IPO Subscription Status

The Prasol Chemicals IPO witnessed a measured response from investors on Day 1, with the issue subscribed 41% overall against the 54.43 lakh shares on offer.

Retail Individual Investors (RIIs): The retail portion was subscribed 69%, with bids received for the 27.21 lakh shares reserved for the category.

Non-Institutional Investors (NIIs): The NII portion saw 31% subscription against 11.66 lakh shares on offer.

Qualified Institutional Buyers (QIBs): Institutional investors remained on the sidelines on Day 1, with no bids received against the 15.55 lakh shares reserved for QIBs.

Prasol Chemicals IPO GMP Today

In the grey market, the Prasol Chemicals IPO is currently commanding a GMP of Rs 30 per share, translating into a premium of around 4% over the upper price band of Rs 676. Based on the prevailing GMP, the IPO's estimated listing price stands at around Rs 706 per share.

However, the modest premium indicates that expectations for listing gains remain relatively subdued for now. Investors will be closely tracking the GMP and subscription momentum over the remaining bidding days.

GMP Note: The Grey Market Premium (GMP) is an unofficial market indicator and is neither regulated nor guaranteed. The actual listing price and gains may vary significantly depending on market conditions, demand and investor sentiment.

IPO Objects of the Issue

The company plans to use the IPO proceeds primarily towards repayment/pre-payment of certain borrowings, either fully or partially, amounting to approximately Rs 60 crore. Any remaining proceeds will be utilised for general corporate purposes, with the total issue proceeds estimated at Rs 60 crore.

Financial Performance

Prasol Chemicals Ltd. reported a 22% increase in total income, rising from Rs 1,015.54 crore in FY25 to Rs 1,237.85 crore in FY26. Profit after tax (PAT) grew strongly by 91%, from Rs 43.57 crore in FY25 to Rs 83.12 crore in FY26, reflecting a significant improvement in profitability.

About Prasol Chemicals Ltd.

Prasol Chemicals Ltd., incorporated in 1992, is a speciality chemicals manufacturer with a portfolio of 150+ products, including acetone-based, phosphorus-based, and other speciality chemicals. Its products cater to key industries such as performance chemicals, paints & inks, construction & adhesives, pharmaceuticals, agrochemicals, and home & personal care.

The company operates manufacturing facilities at Khopoli and Mahad, with a combined annual capacity of 98,644 MT. As of July 31, 2026, Prasol served 1,600 customers and exported to 69 countries. Its key customers include Alembic Pharmaceuticals, Lubrizol India, Rossari Biotech, Clean Science, Gharda Chemicals, Croda India, Supriya Lifescience, and Yasho Industries.

Prasol is a 3-Star Export House recognised by the Government of India and has a strong global distribution network across APAC, North and South America, and Europe.

Should You Subscribe?

According to an Anand Rathi research report, Prasol Chemicals is seeking a valuation of around 48x FY26 earnings, with a post-issue market capitalisation of approximately Rs 40,008 million. This suggests that the IPO is fully priced at the current valuation.

The company’s operations are dependent on manufacturing facilities, where unplanned shutdowns can disrupt production and overall business activities. However, its strong product portfolio, R&D-driven innovation, and diversified global customer base provide a solid foundation for long-term growth in the speciality chemicals sector.

Given these factors, Anand Rathi has assigned a “Subscribe for Long Term” rating to the issue.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times.)