Prasol Chemicals Stumbles On Listing Day, Stock Debuts At Nearly 10% Discount

Mumbai: Shares of speciality chemicals manufacturer Prasol Chemicals Ltd made a weak stock market debut on Wednesday, listing at a discount of nearly 10% to its IPO issue price of ₹676.

Prasol Chemicals shares opened at ₹611 on the BSE, down 9.61% from the issue price. On the NSE, the stock began trading at ₹610, representing a deeper discount of 9.76%.

Following the subdued listing, the company’s market capitalisation stood at ₹3,746.31 crore.

Weak Listing Despite IPO Subscription

The ₹500-crore Prasol Chemicals IPO was subscribed 3.30 times on the final day of bidding last Thursday. The public issue carried a price band of ₹643–₹676 per share.

The offer comprised a fresh issue worth ₹80 crore and an offer for sale valued at up to ₹420 crore. Before opening the IPO to the public, Prasol Chemicals raised nearly ₹150 crore from anchor investors.

Use Of Fresh Issue Proceeds

Prasol Chemicals plans to use the money raised through the fresh issue to repay debt and meet working capital requirements. A portion of the proceeds will also be allocated towards general corporate purposes.

The company was originally incorporated as Prachi Poly Products Private Limited in 1992. It adopted the name Prasol Chemicals in 2007 and was converted into a public company again in 2022.

Speciality Chemicals Portfolio

Prasol Chemicals is a forward-integrated manufacturer of acetone-based, phosphorus-based and other speciality chemicals involving differentiated and complex manufacturing processes.

Its acetone and phosphorus derivatives serve several important industries. These chemicals are used in pharmaceutical production and the synthesis of active ingredients and formulations for agrochemicals.

The company’s products also function as critical raw materials in home and personal care goods, including sunscreens, shampoos, disinfectants, flavours and fragrances. Its diversified applications provide exposure to multiple industrial and consumer-facing markets, despite the muted stock market debut across the country.