Prasol Chemicals Shares Debut Nearly 10% Lower

Shares of speciality chemicals manufacturer Prasol Chemicals Ltd on Wednesday listed with a discount of nearly 10% against the issue price of ₹676.

The stock made its market debut at ₹611, down 9.61% from the issue price on the BSE.

At the NSE, it listed at ₹610, a discount of 9.76% from the issue price.

The company's market valuation stood at ₹3,746.31 crore.

Prasol Chemicals' ₹500-crore initial public offering was subscribed 3.30 times on the final day of bidding on Thursday last week.

The company's IPO had a price band of ₹643-676 per share, comprising a fresh issue of ₹80 crore and an OFS of up to ₹420 crore.

Prasol Chemicals Ltd had mobilised nearly ₹150 crore from anchor investors.

Proceeds from the fresh issue will be used for repayment of debt, meeting working capital requirements and general corporate purposes.

The company, originally incorporated as Prachi Poly Products Pvt Ltd in 1992, changed its name to Prasol Chemicals in 2007 and subsequently became a public company again in 2022.

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

Several acetone and phosphorus derivatives in its portfolio are used in pharmaceuticals, synthesis of agrochemical active ingredients and formulations, besides applications as critical raw materials in home and personal care products such as sunscreens, shampoos, flavours, fragrances and disinfectants.