Prasol Chemicals IPO Day 3: Check GMP, subscription status and other details

The Prasol Chemicals IPO has entered its third and final day of bidding amid subdued investor interest. In the grey market, the IPO is currently trading without any GMP (Grey Market Premium), signalling expectations of a flat listing.

On the second day of bidding, the issue was subscribed 72% overall against the 54.43 lakh shares on offer. Retail investors showed relatively stronger interest, subscribing 1.14 times their reserved portion of 27.21 lakh shares.

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 finalized 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.

Prasol Chemicals IPO Subscription Status

On Day 2, the Prasol Chemicals IPO was subscribed 72% overall, against the 54.43 lakh shares available for subscription.

• Retail Individual Investors (RIIs): The retail portion was subscribed 1.14 times, with bids received for the 27.21 lakh shares reserved for retail investors.
• Non-Institutional Investors (NIIs): The NII portion was subscribed 66%, against the 11.66 lakh shares on offer.
• Qualified Institutional Buyers (QIBs): The QIB portion saw 5% subscription, against the 15.55 lakh shares reserved for this category.

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 utilized 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 specialty chemicals manufacturer with a portfolio of 150+ products, including acetone-based, phosphorous-based, and other specialty 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 recognized 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 capitalization 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 specialty 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)