Prasol Chemicals LtdNSE: PRASOLCHEM · BSE: 544912
McapRs 4,918 CrCMPRs 831

Prasol Chemicals Ltd

NSE: PRASOLCHEM · BSE: 544912 · Main board · Listed 16 Sep 2026 · ISIN INE455U01024 · CIN L99999MH1992PLC065026 (changed from U99999MH1992PLC065026 on listing; intimated 5 Oct 2026) · Data as of 6 Oct 2026 close

Data provenance — read first. The RHP (2 Sep 2026, >10 MB), the 2025 and 2022 DRHPs, the Q1 FY27 earnings-call transcript (NSE filing of 5 Oct 2026) and the Q1 FY27 investor-presentation PDFs could not be machine-read. Many figures below therefore come from secondary write-ups quoting the RHP (multibagg RHP series, Chittorgarh, IPO Watch, Groww, InCred Money, Trade Brains, Paytm Money, SP Tulsian, Bajaj Broking, Samco and two Substack reviews). Tags used: [secondary] = RHP figure via a third party; [single-source] = one weak source; [unverified] = not tied to a primary filing. Still needs a manual RHP read: (1) related-party transaction amounts FY24–FY26; (2) the litigation summary table (the Abridged Prospectus gives 16 statutory/regulatory and 9 tax proceedings against the company, Rs 6.18 Cr where quantifiable, plus 6 criminal proceedings against promoters — the case-by-case Rs table is still missing); (3) cost of acquisition (WACA) for the top sellers Usha R. Shah, Bhisham K. Gupta and Nishith R. Dharia; (4) the "Group Companies" list; (5) whether the 8 family voting pacts survive listing. Also open: seller-wise share table, ESOP status, term-loan schedule, the non-fund-based limit anomaly, Basis-for-Offer-Price peer table date, Acuité surveillance after Nov 2024.

Market data

ItemValueNote / source
CMP (6 Oct 2026 close)Rs 831.00Screener; Investing.com tape (open 791.95, high 846.30, low 788.65)
Previous close (5 Oct)Rs 789.05 / Rs 822Conflict: Investing.com close 789.05 (matches Groww +Rs 42.45 move on 6 Oct) vs share.market/Univest Rs 822 (likely an open/LTP snapshot)
Post-issue shares5,91,83,4315.80 Cr pre-issue + 11,83,431 fresh
Market capRs 4,918 CrScreener Rs 4,917 Cr
Enterprise value (pro-forma)~Rs 4,927 CrNet debt ~Rs 8.8 Cr = RHP-basis Rs 85.2 Cr less net fresh proceeds Rs 76.4 Cr [Est.]
Issue price / bandRs 676 (643–676)Book built 8–10 Sep 2026; lot 22 shares
Listing open (16 Sep)NSE Rs 610 (−9.76%) · BSE Rs 611 (−9.62%)Closed at 10% upper circuit Rs 671 NSE / 672.05 BSE (−0.7% vs issue)
All-time high / lowRs 914.90 (30 Sep) / Rs 601.00 (16 Sep, NSE; BSE 600.50)CMP −9.2% from ATH, +38.3% from low
Return vs issue / vs listing+22.9% / +36.2%Derived
P/E FY26 · TTM · TTM ex one-off~59x · 41.1x · 49.0xFY26 58.0x on pre-issue EPS 14.33; 59.2x post-issue EPS 14.04
EV/EBITDA FY26 · TTM · FY27 guidance35.4x · 26.1x · 19.7–20.5xTTM ex one-off 30.2x
P/B9.3x post-issue NAV Rs 89.30 (10.7x Mar-26 NAV Rs 77.33)~8.4x on pro-forma book (Mar-26 NW + Q1 PAT + net IPO proceeds, pre-dividend) [Est.]
Dividend yield0.14%FY26 DPS Rs 1.20 (60% of FV Rs 2)
Index membershipNone identifiedListed <1 month; not sourced — BSE IPO/all-cap indices may include new listings [inference]
Free float / holders24.75% / 1,19,467Listing-date SHP

Company overview

FieldDetail
HeadquartersPrasol House, Plot A-17/2/3, TTC Industrial Area, Khairne MIDC, Navi Mumbai 400710
Founded24 Jan 1992 as Prachi Poly Products Pvt Ltd; later Prasol Chemicals Pvt Ltd; public company 23 Dec 2021
PlantsKhopoli/Honad, Raigad (1995; 78,784 MTPA) and Mahad MIDC, Raigad (2020; 19,860 MTPA); Dheku repack/storage site; total 98,644 MTPA
Employees724 (Mar-26, Annual Report) · 656 (FY25, CareEdge) · "600+" (website)
Promoters10 individuals across Shah, Parikh, Dharia, Gupta families; Chairman Nishith R. Shah; MD Gaurang N. Parikh; Jt MD Dhaval N. Parikh
SectorSpecialty chemicals — acetone- and yellow-phosphorus-based derivatives; 150 products; 1,618 customers; exports 27.29%
Auditor / ratingCNK & Associates LLP / Acuité A+ (Stable), A1+ — reaffirmed 8 Nov 2024 (no later action located)
BRLM / registrarDAM Capital Advisors (sole) / KFin Technologies
Plain-English description. Prasol imports acetone and yellow phosphorus — it is India's largest acetone importer and a top-5 user of yellow phosphorus — and converts them into about 150 intermediates: solvents and coalescents (diacetone alcohol, isophorone, hexylene glycol, mesityl oxide), lubricant additives (P₂S₅, ZDDP, dithiophosphates), agro and pharma intermediates (DETC, phosphorus chlorides, P₂O₅/PPA) and mining reagents. It is India's only isophorone maker. It earns a conversion spread over volatile imported feedstock, sells about 90% direct to end users and exports to 56 countries in FY26. It listed on 16 Sep 2026 through a Rs 500 Cr IPO that was 84% offer for sale.

Quick verdict scorecard

Business
Medium
Management
Weak
Financial
Medium
Valuation
Expensive
Overall
Neutral
FY26 Revenue (ops)
Rs 1,232.6 Cr
+21.7% YoY · total income 1,237.85
FY26 PAT
Rs 83.1 Cr
FY25 43.57 · FY24 18.13 (restated)
FY26 EBITDA margin
11.3%
Q1 FY27 20.8% reported · ~15.8% normalised
RoE / RoCE FY26
20.4% / 22.4%
RHP adjusted RoAE / RoCE
Q1 FY27 revenue
Rs 433.65 Cr
+35.7% YoY
Q1 FY27 PAT
Rs 61.02 Cr
+151% · ~Rs 41.6 Cr normalised
FY27 guidance
Rs 1,550–1,650 Cr
EBITDA Rs 240–250 Cr
OCF / PAT FY26
0.60x
FY25 0.51x · FCF Rs 10.9 Cr

Freshness: prices to 6 Oct 2026 close; financials to Q1 FY27 (Jun-26, results 28 Sep 2026); Q2 FY27 not yet reported (due by 14 Nov 2026). Labels: [Fact] sourced · [Est.] calculated · [Analyst View] Aamara judgement.

Analyst Notes

[Analyst View] Prasol came to market on 16 Sep 2026 with a Rs 500 Cr IPO, of which Rs 420 Cr was promoter-family selling. It opened 10% below issue. Twelve days later a Q1 FY27 print — revenue +36%, PAT +151% to Rs 61 Cr, EBITDA margin 20.8% — took it to Rs 914.90. At Rs 831 it sits 23% above issue. The market has moved from "fully priced IPO" to "growth compounder" in three weeks. My view is that the reality is between those two, and the price is closer to the optimistic end.

What is real. India's only isophorone maker (9,000 MTPA), the largest acetone importer (CY22–CY25), a top-5 yellow-phosphorus user. 1,618 customers and the largest is under 5% of revenue. EBITDA margin climbed 6.9% → 8.7% → 11.3% over FY24–FY26. Phosphorus revenue grew 35% in FY26 on the Mahad ramp (utilisation 12.7% → 44.1%), and Mahad turned EBITDA-positive in Q1 FY27. Gross debt was only Rs 110 Cr at Mar-26 (Rs 116 Cr fund-based at 15 Jul 2026), or about Rs 56 Cr on the July basis after the Rs 60 Cr IPO repayment. FY26 RoE was 20%. Management pre-emptively stripped about Rs 25.9 Cr of windfall out of Q1. That is a credibility positive.

What is priced. About 59x FY26 EPS, 41x TTM (49x excluding the one-off) and roughly 30–35x guided FY27 earnings. EV/EBITDA is about 20x on the guidance midpoint. That only works if the guide is delivered in full. Clean Q1 EBITDA was about Rs 64 Cr. The guide then needs about Rs 58–62 Cr a quarter for Q2–Q4. FY26 averaged Rs 35 Cr a quarter and Q4 FY26 was about Rs 32 Cr at a 9.6% margin. That is a 1.7–1.9x step-up, sustained for three quarters, with no new capacity before FY29. It is unproven.

Earnings quality is the weak link. FY26 PAT of Rs 83 Cr only regains the FY22 peak. Much of the FY26 margin came from a 27% fall in acetone cost. Much of Q1 came from a West-Asia price spike. Cash has not followed profit. OCF was 0.51x PAT in FY25 and 0.60x in FY26. Receivables rose 41% against 22% revenue growth, and FCF has been about zero for two years. The auditor has modified its internal-controls opinion for three straight years on inventory quantity, valuation and overhead allocation — the same line that produced Q1's gains — and the ERP fix has no date.

Safety and conduct. Four workers have died in three incidents since 2020. Both plants have been closed by the pollution board (Khopoli for 55 days in 2018; Mahad from Oct-2023 to May-2024). Show-cause notices ran through 2025. Sources count 4 or 5 criminal proceedings against MD Gaurang Parikh, and the Abridged Prospectus counts 6 against promoters as a group. The board's EHS director is an IT/CISA professional. Within eight days of listing, a CFO relative breached the trading window, and the VP R&D retired two weeks after a pitch built on "quadrupling" R&D.

Capital allocation signal. Promoters sold 84% of the issue at historical costs that start at Rs 0.09 a share; disclosed WACAs run Rs 2.47–62.50. The RHP said no committed capacity additions. Thirteen days after listing, management announced a Rs 500–600 Cr two-phase capex funded by accruals and debt. So the company used IPO money to repay debt and will now re-lever. A fresh issue sized for the capex would have been the cleaner structure.

Feedstock is turning. DGTR opened an anti-dumping probe on acetone from Singapore, Korea, Taiwan and Thailand on 19 Mar 2026; final findings are likely around Mar-2027. Haldia Petrochemicals' phenol-acetone complex (about 185–215 KTPA acetone) is due to commission on 14 Oct 2026, and Deepak plans another 185 KTA and already runs a 40 KTA MIBK plant. More domestic acetone may lower Prasol's freight and FX costs. It also hands leverage to integrated rivals who could move into Prasol's derivatives.

Flow. 50% of the anchor book (about 11.09 lakh shares, roughly Rs 92 Cr at CMP) unlocks on 10 Oct and is tradable from 12 Oct. The rest unlocks on 9 Dec. Anchors are 23% in profit, FII ownership is 0.18%, and the BRLM's quiet period runs to about 26 Oct.

Bottom line. A genuine but narrow niche franchise at a full price, with weak cash conversion and a poor safety record. I would not chase it at Rs 831. I would revisit after the Q2 FY27 print (needs about Rs 58–62 Cr of clean EBITDA) and the two anchor unlocks. At about 20–25x clean FY27E EPS of Rs 26–28, entry would be around Rs 520–700 [Est., illustrative — not a target price].

What the market is paying for vs what must happen

Pricing assumptionEvidence forEvidence againstTest date
Clean EBITDA steps up ~1.7x vs FY26Q1 clean ~Rs 64 Cr; Mahad profitable; mix shift to secondary/tertiary derivativesQ4 FY26 ~Rs 32 Cr (9.6%); FY26 quarterly range Rs 32–41 Cr; no new capacity until FY29Q2 FY27 (~mid-Nov 2026)
Margins are structuralGross margin averages 23% → 26% → 30% across FY11–26EBITDA margin 6.9% → 20.8% in ~2.5 yrs tracks acetone; Rs 25 Cr Q1 windfallQ2–Q3 FY27
Profits convert to cashFY22–FY26 cumulative OCF/PAT ~1.07xFY25 0.51x, FY26 0.60x; receivables +41%; IFC modified 3 yrsH1 FY27 cash flow
Safety record normalisedISO 45001, scrubbers, detectors, Responsible Care Feb-20264 deaths/3 incidents; notices Mar, Jul, Aug, Sep 2025; criminal cases pendingOngoing
Feedstock access stays cheapNew domestic supply (Haldia Oct-2026)Acetone anti-dumping probe; Deepak forward integrationDGTR ~Mar-2027

Business Deep-Dive

Model. Prasol is a forward-integrated converter of two mostly imported commodities, acetone and yellow phosphorus (YP). Its 150 products split into 21 acetone-based, 53 phosphorus-based and 76 "other" specialty products (surfactants, performance additives, ethers, esters, polymers, acids). Many of the "other" products are distributed or traded. [Fact — Abridged Prospectus] Primary/basic products are about 50% of revenue and secondary/tertiary about 30–35%; the rest is distribution (earnings call). Management claims a 60–70% share in "targeted acetone derivatives" [management estimate].

Company-stated value chain (Q1 FY27 deck, slide 13)

PlatformPrimarySecondaryTertiary
AcetoneIPH (isophorone), DAA (diacetone alcohol)HG (hexylene glycol), MO (mesityl oxide), TMC-nol, TMC-none, MX (likely 3,5-xylenol [inference])MPD, MPOL (not expanded in any source)
PhosphorusP₂S₅, P₂O₅, PPA (polyphosphoric acid)Thio acids, DETC, phosphates, phosphitesZDDP, mining chemicals

Product-by-product verification

ProductEnd useManufacturing evidenceStatus
Diacetone alcohol (DAA)Coatings/ink solvent; intermediate to MO, HG, MIBKEIA 2020: 9,000 TPA consented; Acuité 2020 "one of India's leading manufacturers of DAA and P₂S₅"Made (Khopoli)
Isophorone (IPH)High-boiling solvent (coatings, inks, agro); precursor to TMC, 3,5-xylenolRHP: sole Indian maker, 9,000 MTPA [secondary]; AR "only manufacturer in India"; EIA 3,600 TPA consentedMade (Khopoli)
Mesityl oxide (MO)Solvent; MIBK/MIBC intermediateEIA 750 TPA; REACH-numbered TDSMade
Hexylene glycol (HG)Coalescent; HPC; hydraulic fluidsEIA "HG, TMC-ol, TMC-one" 1,800 TPAMade
TMC-none / TMC-nolSolvents; fragrance/HPC intermediatesEIA; deck; websiteMade
3,5-Xylenol ("MX")Antiseptics, resins, agroNew product per Acuité 2020; EIA 3,000 TPA proposedLikely made [inference]
MIBKCoatings solvent; rubber antioxidant precursorTDS Jan-2026; EIA 2020: 5,000 TPA proposed, none existing; not in deck treeSold; in-house production not proven
MIBCMining frotherWebsite; EIA 3,000 TPA proposedProduction unverified
DIBK/DIBC, methyl pentadiene, benzylidene acetone, cumene hydroperoxide, dicumyl peroxide, resorcinol, Bisphenol-SVariousOnly proposed lines in EIA 2020; Bisphenol-S on website "core competencies"Unverified
Acetone, PM, PMA, DPMA, IPAc, DBE, sec-butyl acetateSolventsWebsite; consistent with Rs 175 Cr FY26 traded purchasesTraded [inference]
P₂S₅Thionation; feedstock for dithiophosphoric acids → ZDDP and OP insecticidesAR MD&A; EIA 6,000 TPA (Khopoli); Mahad EC 12,000 TPAMade (both plants)
DETCOrganophosphate-insecticide intermediateAR MD&A; Mahad EC DETC/DMTC 12,000 TPAMade (Mahad)
DMTC, DMPATOP agro intermediates (DMPAT → acephate)Mahad EC: DMPAT 1,000 TPAPermitted; status undisclosed
PCl₃ / POCl₃ / PCl₅ / PSCl₃Chlorinating agents (glyphosate, OP chains, cephalosporins); flame retardantsMahad EC chlorinated products 10,000 TPA; website pagesIn portfolio; made vs traded undisclosed
P₂O₅, PPA, phosphorous acid (food grade), dilute acidPharma/agro cyclisations; food/feedEIA consented: 500 / 600 / 624 TPAMade
Dithiophosphates (incl. sodium salts), thio acidsLube additives; mining flotation collectorsDeck; EIA; Mahad EC 6,000 TPAMade
ZDDPEngine-oil anti-wear/antioxidantDeck (recent new product); EIA 1,500 TPAMade
Phosphate esters, alkyl phosphites, amine phosphatesLube additives, flame retardants, surfactantsDeck; EIA proposedIn portfolio
Red phosphorusFlame retardants, matchesMahad EC 2,000 TPAPermitted; not confirmed
"Other specialty" (76 SKUs)Surfactants, lube packages, bitumen/construction emulsifiers, mining reagentsAbridged Prospectus; lubricants and mining web pagesMix of blends and traded
Antibacterial active (under NDA, for an MNC)Wound care / mouthwash-type antisepticCall: new 3–3.5-step route replacing a 10-step route; sample approved; mechanical completion ~Jan-2027; >100 t/month initialPipeline (PCMX fit is pure inference)

"Technical distribution" playbook and history

Trade a product for 5–7 years, build >50% of the Indian market, then manufacture. Distribution earns about 5–6% EBITDA vs about 15% for manufactured goods. "Others" is to shrink from 18% to about 10% within 5 years (about 30% seven to eight years ago). The model started from job work for Rallis India (~2000), which later gave a "Make in India Partnering Award".

Year1992199519962003200720102019202020222025
MilestoneIncorporatedKhopoli plantPhosphorusAcetone derivativesPharmaLube antioxidants / anti-wear5 MW co-genMahadConstruction chemicalsMining

Process technology

Unit processes: aldol condensation, hydrogenation (batch and fixed-bed), thio-acid synthesis, chlorination, esterification, oxidation, chelation, vapour-phase alkyl rearrangement. Khopoli runs 5 hydrogenation reactors and a 6th is being built for a cosmetics application. One lube-additive product runs on 9–10 dedicated streams holding ±0.05% against the customer's ±0.2% spec; an agitator redesign could add 50–70% capacity. Recent additions (AR): an imported continuous process plant with heat integration, an imported compressor, DCS/PLC automation, an "SS3 / 100 TPM" project. By-products: AMS, acetophenone, di-nonyl phenol. Utilities: 5 MW co-gen, zero liquid discharge, power and fuel Rs 59.6 Cr (4.8% of revenue). Legacy 2019 Honad consent rows ("Phenol 20,000; Acetone 12,000 TPA") are not evidence of backward integration.

Facilities

SiteLocationLandEst.Capacity FY26Utilisation FY24/25/26Made
Khopoli (Honad)Survey 08, 13–16, 25, 75, Takai-Adoshi Rd, Khalapur, Raigad~29.8 acres, 11.98 spare (deck); call "4 to ~32 acres"199578,784 MTPA71.73% / 68.60% / 80.29%Acetone chain; P₂S₅; ZDDP; P₂O₅/acids; co-gen; pilots
MahadPlot FS-30, Mahad Five Star MIDC, Amshet, Raigad~29.5 acres, 18.4 spare (deck); call "10+10+10", last 10 bought ~1 month ago202019,860 MTPA (15,000 → 17,000 → 19,860)12.72% / 25.18% / 44.09%; 60%+ Q1 FY27; target 70%+ FY27-endP₂S₅, DETC/DMTC, dithiophosphates, chlorides. Output 1,908 → 4,281 → 8,756 t
DhekuSurvey 74, 146, 150–154, Khalapur (30,110 sqm)n.d.n.d.Repack, storage, dispatchn.a.Can be re-purposed
R&D centrePrasol House, TTC MIDC, Navi Mumbain.d.n.d.DSIR-recognisedn.a.New pilot plants (~Rs 15 Cr); 4,000 sq ft application lab (Rs 15–20 Cr)
Sayakha, GujaratBharuch districtn.d.n.d.n.a.n.a.AR "started process to expand"; call "small distribution setup"; Master Capital cites expansion [unverified]
Consignment stocksHouston, Rotterdam, Shanghai——Warehousing—Partners: Skyhawk Chemicals, Rotterdam Chemicals Group

Conflicts: Mahad FY26 utilisation 44.09% (RHP via multibagg) vs ~27% and "~100%+" (two InCred readings). Arithmetic supports ~44%: 0.80×78,784 + 0.44×19,860 ≈ 71,770 t = 72.8% blended, matching the 70–73% company figure. Land: deck and call acreages do not reconcile; both are shown. Phase I base: deck 98,844 MTPA vs RHP 98,644 (200 MTPA unreconciled). All plant land is MIDC leasehold (95–99-year leases per AR); a lease-dispute hearing has been pending since Apr 2026 (Tijori). About 74% of import shipments clear at Nhava Sheva [secondary, Eximpedia snippet].

Certifications, IP, R&D, exports

ItemDetail
ISO 9001:2015 / 14001:2015 / 45001:2018Bureau Veritas multi-site (IND.25.365/IM/U) — Honad, Dheku, Mahad; valid to 26 Apr 2028
ICC Responsible CareFeb-2026 to Jan-2029
DGFT Export House3-Star, 16 Aug 2023 to 16 Aug 2028 (Acuité Nov-24 says 2-Star — certificate used)
EcoVadis / TfSRated / member (ScanX "93" omitted: unclear if score or percentile)
EU REACH6–7 products; first obtained by 2020
PatentsNone disclosed; IP is process know-how. Product-registration intangibles Rs 6.37 Cr gross (Mar-26)
R&D team37 (4 PhDs, 25 chemists) per deck/Kotak Neo vs 18 per CareEdge FY25
R&D pipeline40 → 31 → 9 at pilot; 13 products commercialised Apr-23 to Jun-26 (ZDDP, IPH, PPS); expected conversion 15–20%
R&D spendRs 3.28 Cr FY26 (~0.27% of revenue); Rs 1.92 Cr FY25; R&D expense disallowed for AY2018-19
ExportsFY26 Rs 336.4 Cr (27.29%); FY25 Rs 287.0 Cr (28.35%); FY24 25.32% (~Rs 222 Cr [Est.])
Countries56 sold to in FY26 (50 in FY24/25) · 63 network at 30 Jun 2026 · 69 distribution network · "65+" deck; 23 Indian states
Forex flows FY26Inflow Rs 303.1 Cr vs outflow Rs 583.9 Cr — net importer

Segment Analysis

Prasol reports a single operating segment under Ind AS 108, so there is no segment EBITDA. Product-family revenue is from the Abridged Prospectus. FY26 is standalone; FY24–FY25 are restated consolidated (immaterial subsidiary). Q1 FY27 family split is "nearly 40/40/20" per management; no family figures were given.
Rs CrFY24FY25FY26YoY FY25YoY FY262-yr CAGRFY26 mix
Acetone-based411.7483.3526.9+17.4%+9.0%13.1%42.75%
Phosphorus-based278.9349.0472.0+25.1%+35.3%30.1%38.30%
Other specialty182.6174.5225.9−4.4%+29.4%11.2%18.33%
Other operating revenue3.45.77.8n.m.n.m.n.m.0.63%
Total876.61,012.51,232.6+15.5%+21.7%18.6%100%
FY24 · 876.6FY25 · 1,012.5FY26 · 1,232.6412279186483349180527472234AcetonePhosphorusOther
Revenue by product family, Rs Cr (other includes other operating revenue). Source: Abridged Prospectus.

Company-level margins (RHP restated EBITDA excludes other income)

Rs CrFY24FY25FY26Q1 FY26Q1 FY27
Gross margin228.7 (26.1%)288.1 (28.5%)378.7 (30.7%)95.8 (30.0%)164.5 (37.9%)
EBITDA60.5 (6.9%)87.8 (8.7%)139.3 (11.3%)40.6 (12.7%)90.3 (20.8%)
PAT18.143.683.124.361.0
EBITDA ex Mahad losses75.594.9143.3n.d.Mahad EBITDA- and PBT-positive

Annual-report EBITDA (Rs 70.9 / 90.0 / 144.6 Cr) includes other income; RHP figures are used. Long-run gross margins averaged 23% (FY11–15), 26% (FY16–19) and 30% (FY20–26). Guidance: normalised gross margin 30–32%; FY27 EBITDA margin 15–16%.

Mahad plant economics

MahadFY24FY25FY26Q1 FY27
Capacity (MT)15,00017,00019,86019,860
Production (MT)1,9084,2818,756Record
Utilisation12.7%25.2%44.1%60%+
Loss before tax (RHP, Rs Cr)(22.8)(15.8)(12.2)Positive
EBITDA loss (deck, Rs Cr)(14.9)n/a(3.9) — InCred ~(4)Positive
Khopoli utilisation (context)71.7%68.6%80.3%"optimum"

Fastest grower — phosphorus (+35.3%): Mahad ramp, ZDDP, DETC and mining collectors; YP price +8.79% to Rs 353.81/kg [secondary, Samco]. Under pressure — acetone (+9.0%): the acetone price fell 26.89% (Rs 81.81 → 59.81/kg), so volume grew well above 9% while realisations tracked feedstock down [inference]. Share of revenue fell 47.7% → 42.75%. Pressure from Chinese dumping (Acuité 2024) and Deepak's integrated MIBK. Management focus: raise secondary/tertiary phosphorus derivatives from ~35% to ~50%; shrink "Others" to ~10%.

End-industry split FY26 (management estimate, top 200 customers)

IndustrySharePrasol products
Performance chemicals (lubricants, mining)20–25%ZDDP, dithiophosphates, frothers/collectors
PICA (paints, inks, construction, adhesives)20–25%DAA, IPH, HG, MO, TMC; emulsifiers
Pharmaceuticals (API intermediates)20–25%Phosphorus chlorides, PPA, P₂O₅, solvents
Agrochemicals15–20%P₂S₅, DETC/DMTC, PCl₃ chain
HPC (fragrances)10–15%TMC derivatives, HG

Financials: P&L

Basis. Revenue = revenue from operations (FY26 Rs 1,232.59 Cr), not total income (Rs 1,237.85 Cr), which several aggregators label "revenue". FY26 restated is standalone; FY24–FY25 restated consolidated (subsidiary appears immaterial — identity unconfirmed; verify in RHP). FY21–FY23 are Screener standalone, not restated.

Restated P&L FY24–FY26 (Rs Cr)

LineFY24FY25FY26CAGR FY24–26
Revenue from operations876.571,012.491,232.5918.6%
Total income887.561,015.541,237.8518.1%
Gross profit (margin)228.7 (26.1%)288.1 (28.5%)378.7 (30.7%)
Operating EBITDA (ex other income)60.5387.77139.3251.7%
EBITDA margin6.91%8.67%11.30%
Depreciation (Screener)~21~23~25
Finance cost10.89~87.98
EBIT (PBT + finance cost)44.40~67.3119.88
EBIT margin5.07%~6.6%9.73%
Exceptional item(5.76)––
PBT33.5159.29111.9082.7%
PBT margin3.82%5.86%9.08%
Tax (rate)15.38 (45.9%)15.72 (26.5%)28.78 (25.7%)
PAT18.1343.5783.12114.1%
PAT margin2.07%4.30%6.74%
EPS (Rs, 5.80 Cr shares)3.137.5114.33

Sources: Trade Brains; Paytm Money (Rs mn: 8,765.65/10,124.94/12,325.93 revenue; 605.28/877.66/1,393.20 EBITDA; 181.31/435.69/831.24 PAT); scanx (PBT); InCred (finance cost, exceptional, FY26 other income 5.25); Screener (D&A). Tie-outs: FY26 EBIT 119.88 + D&A ~25 − OI 5.25 ≈ 139.6 vs 139.32; FY24 44.40 + 21 − 11.00 + 5.76 ≈ 60.2 vs 60.53. Conflicts: FY24 PAT Rs 23.75 Cr (deathgamersolo, likely pre-restatement) vs restated Rs 18.13 Cr (Acuité 18.14) — 18.13 used. FY25 PAT Rs 39.38 Cr (InCred) vs restated Rs 43.57 Cr — 43.57 used. SBI Securities cites PAT CAGR 97.8%; restated arithmetic gives 114.1%.

Longer history (Screener standalone, not restated)

Rs CrFY21FY22FY23FY24FY25FY26
Sales5928969308771,0121,233
Operating profit49133876288140
OPM8%15%9%7%9%11%
Other income972434
Interest1212121188
Depreciation131719212325
PBT34111583459112
Tax %26%26%17%46%27%26%
PAT258349184483
EPS (Rs)86.52* (~4.33 adj.)14.248.383.137.5114.33
Dividend payout2%0%0%10%4%8%

*Pre Dec-2021 5:1 split and Jan-2022 3:1 bonus. Cross-checks: Acuité FY23 operating income Rs 931.40 Cr, PAT Rs 48.59 Cr; 2022 DRHP FY20 revenue Rs 531.24 Cr / PAT Rs 37.77 Cr, FY21 Rs 595.54 / 25.08 Cr, 9M FY22 Rs 626.93 / 50.10 Cr.

5928969308771,0121,233FY21FY22FY23FY24FY25FY26
Revenue, Rs Cr. FY21–23 Screener standalone; FY24–26 restated.
15%8.314.89.46.98.711.320.815.8 norm.FY21FY22FY23FY24FY25FY26Q1FY27
EBITDA margin (black) and PAT margin (gold), %. Red circle: Q1 FY27 normalised EBITDA margin.

Quarterly results — 8-quarter history: Not Available — listed Sep 2026

The RHP contains no quarterly or stub periods. The quarters below are those disclosed (Q1 FY27 results with comparatives; Screener). Q2 FY27 is not yet released (due by 14 Nov 2026).

QuarterRevenueYoYQoQEBITDAEBITDA %PATPAT YoYPAT QoQEPS
Q1 FY27 (Jun-26)433.65+35.7%+29.4%90.320.8%61.02+150.7%+212%10.52
Q4 FY26 (Mar-26)~335 (sales 334.05)NANA~32~9.6%19.56NANA3.37 (Screener 3.42)
Q2+Q3 FY26 (derived)~578.0NANA~66.7~11.5%~39.22NANA–
Q1 FY26 (Jun-25)319.6 (sales 318.81)NANA40.6 (scanx 40.7)12.7%24.34NANA4.20
Q4 FY25 and earlierNot Available — listed Sep 2026

EBITDA YoY Q1 FY27 +122%. Q1 detail: total income 435.36; other operating income 1.56; other income 1.71; total expenses 351.80; PBT 83.56 (+155% vs 32.78); tax 22.54 (current 22.16, deferred 0.38); OCI (0.15); TCI 60.87; PAT margin 14.1%; gross profit 164.5 vs 95.8 (37.9% vs 30.0%). scanx margin 20.85% vs 12.74%. Q2+Q3 FY26 is derived (FY26 − Q1 − Q4), not reported. Limited review unmodified; Rs 3.186 Cr IPO expenses to be adjusted against securities premium. Stock +9.7–9.8% on 29 Sep (upper circuit Rs 840.15 NSE; cited as Rs 838–839 by Trade Brains/cruxal).

Q1 FY27 normalisation (Rs 25 Cr geopolitical price gain + Rs 0.92 Cr FX gain)

Rs CrReportedOne-offsNormalisedYoY normalised
Revenue433.65−25 (if gain sits in price)~408.65+27.9%
EBITDA90.3−25.92~64.4+59%
EBITDA margin20.8%—~15.8% on 408.65 · ~14.8% on 433.65vs 12.7%
PAT61.02−25.92 × (1−25.2%)~41.6+71%
Gross margin37.9%—30–32% guidedvs 30.0%

[Est.] Whether the full Rs 25 Cr flowed to EBITDA is unconfirmed. Whalesbook/scanx call it "inventory gains"; company language is "sharp increase in average selling price due to geopolitical-led supply chain issues".

FY27 guidance: implied Q2–Q4 run-rate vs FY26 run-rate

BasisRevenue / qtrEBITDA / qtrEBITDA %Step-up vs FY26 avg EBITDA
FY26 average quarter308.134.811.3%1.0x
Q2+Q3 FY26 average~289~33.4~11.5%—
Q4 FY26~335~32~9.6%—
Q1 FY27 normalised~408.65~64.4~15.8%1.85x
Required Q2–Q4 — Reading A (guide excludes one-offs; subtract clean Q1 64.4)372–40558.5–61.9~15–16%1.68–1.78x (1.83–1.93x vs Q4 FY26)
Required Q2–Q4 — Reading B (subtract reported Q1 90.3)372–40549.9–53.2~13%1.43–1.53x
Revenue step-up vs FY26 average1.21–1.32xFY27 revenue guide +26–34% on FY26; Phase I capacity not online until ~FY29

[Analyst View] Reading A is consistent with management's 15–16% margin guide, so the guide is internally coherent. It still requires a sustained 1.7–1.9x step-up over every FY26 quarter, with Khopoli already at 80% utilisation. Revenue growth must come from price, mix, the Mahad ramp and Khopoli debottlenecking.

Earnings quality and drivers

Balance Sheet, Cash Flow & Ratios

Rs Cr (Mar)FY21FY22FY23FY24FY25FY26
Net fixed assets267293291326326314
CWIP202560222147 (AR 47.1)
GoodwillNot separately disclosed; no acquisitions
InventoryNANA~132 (derived)99.8151.7153.2
Trade receivablesNANA~167.7 (derived)160.34197.27278.69
Trade payablesNANANA~72.2 (derived)~97.8 (derived)109.11 / 208.2 ⚠
Cash & equivalentsNANANA~10.0~16.6~24.8 (implied)
Total borrowings16216218682.07101.05110.06
— LT / ST43.37 LT (Acuité)43.6 / 57.5 (Tofler)NA
Net debt (RHP basis)~71.7~84.5~85.2
Net worth180263310325.84367.46448.51
Reserves177251298314.24355.87436.91
Total assets550677688626.36723.09839.28
NAV/share (Rs)77.33

⚠ Payables conflict: Rs 109.11 Cr (deathgamersolo) vs Rs 208.2 Cr (Annual Report, management cites supplier credit; payables vs inventory Rs 153.2 Cr). FY24/FY25 inventory and cash rest on search summaries of RHP data, corroborated by Acuité (FY24 cash Rs 10.04 Cr) and cash-flow movements. Net-debt tie-out: 0.22×325.84 = 71.7 → cash ~10.4; 0.23×367.46 = 84.5 → 16.5; 0.19×448.51 = 85.2 → 24.8. Tijori shows lower net debt (Rs 61.72 Cr Mar-26; 67.64 Mar-25), likely netting FDs — not used. Receivables jumped 41% YoY vs 22% revenue growth; company WC days 37 → 50.

Cash flow and PAT-to-OCF conversion

Rs CrFY21FY22FY23FY24FY25FY26
PAT25834918.1343.5783.12
Cash before WC changes59.66101.33148.31
WC change: receivables / inventory / payables−7.41 / −32.25 / +8.83+37.41 / +51.87 / +25.61+81.68 / +1.34 / +11.33
Cash generated from ops120.2937.5679.55
Income tax paid4.6815.2930.08
OCF208129115.6122.2649.47
Capex (implied)~47~48~52~19~22.638.61
FCF−2733−23~97−0.3210.86
Investing CF−41−42−54−12−26−42
Financing CF14−1211−115100
OCF / PAT0.8x0.98x0.59x6.4x0.51x0.60x
OCF / EBITDA191%25%36%
FCF yield at Rs 4,918 Cr0.22%
FY21FY22FY23FY24FY25FY26115.683.149.543.622.3PATOCF
PAT vs operating cash flow, Rs Cr. FY24 OCF was a one-off working-capital release during the Mahad shutdown.
Flag — PAT does not convert to cash in the two latest years. FY26: pre-WC cash Rs 148.3 Cr, Rs 68.8 Cr absorbed by working capital (receivables +81.7), tax Rs 30.1 Cr → OCF Rs 49.5 Cr (0.60x PAT, 36% of EBITDA). FY25: WC absorbed Rs 63.8 Cr → OCF 0.51x. FY24's 6.4x was a one-time release used to repay ~Rs 104 Cr of debt. Cumulative OCF/PAT: FY25–26 0.57x; FY24–26 1.29x; FY22–26 ~1.07x. FCF averaged ~Rs 23.5 Cr/yr FY22–26 (~0.48% yield). The upswing has been funded by receivables, and the auditor has modified its IFC opinion on inventory for three years.

Working-capital days

DaysFY21FY22FY23FY24FY25FY26
Debtor days (Screener)907166677183
Debtor days (closing / rev ops)66.871.182.5
Receivable days (RHP/Groww, avg basis)686470
Inventory days (Screener)688574587967
Inventory days (Acuité)5745
Payable days (Screener)143133919910291
Payable days (Acuité)9095
CCC (Screener)152249254858
CCC own calc on RM cost, payables 109.11~106 (DIO 81, DPO 58, DSO 83)
CCC own calc, payables 208.2 (AR)~53 (DPO ~110) [Est.]
CCC deathgamersolo100 (supplier days 45)
WC days (Screener)−25−75142842
WC days (company)413750
GCA days (Acuité)131114

Under every method the cycle lengthened from FY24/FY25 to FY26. Management describes a typical 60–70-day cycle; inventory historically 40–45 days.

Return and leverage ratios

RatioFY24FY25FY26
RoAE (RHP adjusted)5.71%12.57%20.37%
RoNW (closing NW)~5.6%~11.9%18.53%
RoCE (RHP adjusted)12.61%14.95%22.43%
Gross D/E0.25x0.28x0.25x (Groww 0.23x)
Net D/E (RHP)0.22x0.23x0.19x
TOL/TNW (Acuité)0.93x (FY23 1.25x)
EBITDA / interest5.6x (Acuité 6.04x; FY23 7.44x)~11x17.5x
EBIT / interest4.1x~8.4x15.0x
DSCR (Acuité)1.32x (FY23 2.16x)
Debt / EBITDA1.36x1.15x0.79x
Current ratio1.19xNANA
Asset turnover1.40x1.40x1.47x
Fixed-asset turnover2.7x3.1x3.9x
Bank-limit utilisation (6m to Sep-24)FB 28.3%; NFB 51.7%

Debt structure (RHP "Financial Indebtedness", 15 Jul 2026)

FacilitySanctionedOutstandingTerms
Fund-based WC (CC/WCDL)274.5052.007.05–7.65%, 12m, on demand
Non-fund-based (LC/BG)120.00227.245*—
Term loans256.4064.4216.27–7.75%, 5–7 yr amortising
Total650.90343.666Fund-based only = Rs 116.4 Cr (= SP Tulsian "gross debt Rs 116 Cr")

*NFB outstanding exceeds sanction as printed — likely interchangeable limits or a transcription error; verify. IPO Watch "Rs 242.57 Cr at 31 Dec 2025" is likely total indebtedness incl. NFB. Security: charge on current, movable and immovable assets. No defaults/covenant breaches disclosed. Acuité estimated repayments ~Rs 14–15 Cr/yr FY25–26; FY24 maturities Rs 27.30 Cr vs accruals Rs 39.50 Cr. A transcript extract says "post-IPO… paid off all debt" [unverified — contradicts Rs 116 Cr fund-based debt less Rs 60 Cr repayment].

Lender (Acuité-rated Rs 429.29 Cr, Nov-24)CCWCDLTerm loanLC
Citi36.5020.00
Kotak24.0036.009.75
DBS5.0052.50
IDBI0.5030.00
ICICI70.00
HDFC8.16 + 10.80 + 15.8440.00
Proposed70.24

MCA charges (Tofler): Axis Trustee Rs 454.1 Cr; HDFC 144.6 (4 charges); ICICI 100.0; Kotak 74.2; DBS 57.5; Citibank 56.5; IDBI 50.5 — charge amounts, not outstanding debt.

Credit rating

Acuité Ratings: LT ACUITE A+/Stable (Rs 359.29 Cr) and ST ACUITE A1+ (Rs 70 Cr), reaffirmed 8 Nov 2024; A+/Stable reaffirmed 11 Aug 2023; Positive outlook 19 May 2022; rated since at least Feb 2020. Downgrade trigger: elongation of the working-capital cycle — which has since happened (37 → 50 days). Conflict / gap: the Nov-2025 surveillance was not found; an aggregator claims a Sep-2026 reaffirmation [unverified]; Screener links only a June 2015 CRISIL document, so the company may now be unrated or the rating withdrawn. No CRISIL, ICRA, CARE or India Ratings rating found.

Use of IPO proceeds and forward capex

ObjectRs Cr
Repayment/prepayment of borrowings60.00
General corporate purposes16.39
Net proceeds76.39
Company share of issue expenses (80 − 76.39)~3.61
Total offer expenses (mostly borne by sellers)21.95

Chittorgarh's "total 98.34" wrongly adds expenses to net proceeds. ScanX's "Rs 60 Cr fresh issue" confuses the debt object. deathgamersolo's "100% to working capital" contradicts the RHP — disregarded. Pro-forma: fund-based debt ~Rs 116 → ~56 Cr; RHP-basis net debt ~Rs 9 Cr. Deployment in FY27.

Capex (announced 29 Sep 2026)Rs CrScopeTiming
Phase I250–300 (incl. 50–60 land/infra; Rs 25 Cr floating-roof acetone storage)Debottleneck Khopoli/Mahad; 10–14 product projects; +60,000 MTPA → 1,58,844 MTPA; peak revenue Rs 500–550 Cr~2 yrs; FY29 capacity
Phase II250–300 (+50–60 infra per cruxal)New R&D-pipeline products; ECs pending (9–12 months)From H2 FY28
Total500–600Funded by internal accruals + debt
Capital commitments Mar-2699.11 (IPO Watch/scanx) vs 16.4 (Annual Report) ⚠Conflict unresolved; verify in RHP

Cruxal's "Phase I Rs 300–360 Cr" superseded by deck. Capex intensity ~Rs 4,600/tonne. Annual spend would be 2–3x the historical Rs 21.8–41.4 Cr. [Analyst View] Gross debt will rise again from FY27–FY28.

Equity and share-count history

DateEventShares after
Feb 1993Initial subscription 150,000 shares (FV Rs 10)1.5 lakh
2002–2004; Jul 2017Four buy-backs (~561,743 shares, incl. 1 Mar 2004) + Jul-2017 buy-back of 200,000 shares—
Dec 2021Split Rs 10 → Rs 2 (1:5)14.50 mn
Jan 20223:1 bonus (+43.5 mn); paid-up Rs 11.60 Cr; authorised Rs 38 Cr58.0 mn
Sep 2026IPO fresh issue 11,83,431 shares (dilution 2.0%)5,91,83,431
OtherNo QIP, preferential, warrants, pre-IPO placement or ESOP found (verify ESOP in RHP). No buyback since listing.—
Capital-record gap: the RHP says certain historical records cannot be traced — the 21 Feb 1995 allotment, the 1 Mar 2004 and 12 Jul 2017 buy-backs, some transfers and promoter acquisitions — reconstructed from registers and a PCS certificate dated Sep–Oct 2026.

Contingencies

ItemRs CrSource / note
Contingent liabilities + commitments FY24 / FY25 / FY2667.60 / 46.81 / 109.12Groww: 20.75% / 12.74% / 24.33% of NW
FY26 split version A10.02 contingent + 99.11 commitmentsIPO Watch review; scanx
FY26 split version B~83 of 109.12 = open LCsIPO Watch recommendation / RHP search summary ⚠ conflicts with A
Disputed tax & customs~18.42deathgamersolo [single-source]
DRI MEIS show-cause14.85 vs 0.68Substack vs Annual Report contingent liability ⚠
Abridged Prospectus count6.18 quantifiable16 regulatory + 9 tax proceedings vs company

Management, Promoters & Governance

Governance grade: Weak [Analyst View]. Board composition is compliant and leverage is low. Against that: 4 deaths in 3 incidents with criminal exposure for the MD; three years of modified IFC opinions; family voting pacts; an 84% OFS at very low cost; and a trading-window breach within 8 days of listing.

Promoters (10 individuals; no corporate promoter)

PromoterRoleBackgroundOther interests
Nishith Rajnikant Shah (~67)Founder; Chairman & WTD since 1992; Rs 3.126 Cr p.a.BSc Cal State Northridge; MS Engg Cal Poly; returned 1985 to family businessesHeatreaters & Engineers, Heat Fabs (RPT counterparties); Friends Fab Form (director since 1 Sep 2021); past Pratech association; Prasol Aromatics (struck off)
Gaurang Natwarlal Parikh (~53)MD; director since 9 Aug 2001; Rs 2.210 Cr p.a.BE Chem Pune; MS ChemE Toledo; Owens Brockway, Rostone, Budd Co.Accused as "occupier" in Factories Act criminal complaints (count conflict below); Pratech (past); Prasol Aromatics
Dhaval Nalin Parikh (~45)Joint MD; joined 31 May 2007; Rs 1.672 Cr p.a.BTech Polymer ICT; MS UMass Lowell; GE PlasticsGroww labels him "MD/CEO" (inconsistent); Prasol Aromatics from 24 Jan 2025
Pankil Nishith DhariaWTD Strategy & BD since 11 Nov 2010BS EE + LAS UIUC; Medtronic—
Sachin Jatin ParikhPromoter, not on board—Director, Pratech Brands Pvt Ltd (VC-backed D2C; ~$9.3 mn raised)
Suketu Navinchandra ParikhPromoter, not on board—Partner Heatreaters & Engineers and Heat Fabs; WTD Friends Fab Form
Kunal Tushar DhariaPromoter, not on board—Partner Maxima FRP Product (RPT counterparty)
Nishith Rasiklal DhariaPromoter, not on board—Electrical switchgear distribution; entity name not confirmed — "Nishith Electric" link is an inference (a web directory instead ties a Nishith Dharia to Sentinel Electric Co.) [inference]
Rakesh GuptaPromoter, not on board (≠ WTD Rakesh S. Jadhav)—[gap]
Usha Rajnikant ShahPromoter; largest OFS sellerJoint holder with N.R. Shah, Sandhya Shah—

Track record: organic growth from 1992 to Rs 1,233 Cr revenue; no acquisitions; no promoter defaults, insolvency or SEBI action found. Acuité describes promoters as "metallurgical engineers". Jatin Parikh (promoter group) reportedly died on 24 Aug 2026; his shares are not yet transmitted [unverified — uncited in one input]. Top-3 fixed pay ~Rs 7 Cr ≈ 8.4% of FY26 PAT [unverified vs RHP, IPO360]; CFO Rs 0.98 Cr FY26.

Family voting pacts (8 agreements, 2017, amended 2022)

Voting headMembers represented
Dhaval N. ParikhDipti, Nihir, Suhagi, Jhanvi Parikh
Sachin J. ParikhJatin, Shamak, Shruti Parikh
Suketu N. ParikhSundeep, Lina, Sheetal, Pushpa, Heta, Namita Parikh
Kunal T. DhariaTushar, Ami, Mansi, Bhairavi Dharia; Tushar Dharia HUF
Rakesh GuptaBhisham Kumar, Raksha, Veenu Gupta
Gaurang N. Parikh"Tanyj" Parikh (as transcribed); Gaurang N. Parikh HUF
Nishith R. ShahSandhya, Anvi, Ashna, Usha Shah
Pankil N. Dharia & Nishith R. DhariaSonal, Kinjal, Riddhi Dharia

Executed 20–26 Sep 2017, amended 30 Mar 2022 (another of 18 Nov 2017 amended 9 Apr 2022). Voting arrangements, ROFO, non-compete, deed of adherence; ROFO waived for IPO transfers. Company not a party. Status at listing: [gap — manual RHP read required].

Key management and board (10 directors: 5 executive, 5 independent; executive chair)

Name (DIN)RoleSinceBackground / notes
Nishith R. Shah (00381267)Chairman & WTD, promoter1992Founder
Gaurang N. Parikh (00190701)MD, promoter9 Aug 2001Criminal complaints as occupier
Dhaval N. Parikh (01636199)Joint MD, promoter2007Ex-GE Plastics
Pankil N. Dharia (03309485)WTD, promoter11 Nov 2010Ex-Medtronic
Rakesh Shivaji Jadhav (07508734)WTD — EHS, Governance & Business Process; professional~2025BCA; IIM Indore exec cert; CISA; ~22 yrs IT (Nitya Computers, MRC Logistics, LP Logiscience, Elde Info). No stated process-safety background.
G. Ramakrishnan (00264760)Independent1 Mar 2022FCA, FCMA; Galaxy Surfactants director since 1986 — check Prasol–Galaxy trade [gap]
Prof. Lakshmi Kantam Mannepalli (07831607)Independent1 Mar 2022PhD Chem; ex-CSIR-IICT; ICT professor; FINSA, FRSC; also ID at Vinati Organics, Godavari Biorefineries, NACL
Srinivasan Subramanian (09439443)Independent1 Mar 2022CA, CS; ex-Indian Bank, Indian Bank MF, WCL, Indal, IOB, Lloyd Finance
Ajay Motilal Jain (02815416)Independent1 Mar 2022 (Tofler implies ~2 yrs)BTech Chem IIT-B; Waaree Instruments, Vasavadatta Cement, Neuland Labs, Hindustan Shipyard
Narayanan Pulukhool Nair (11124568)Independent18 Jun 2025 (website: Sep 2025)~28 yrs supply chain: ADAMA, Gharda, Makhteshim-Agan, SD Fine Chem, Ranbaxy
Rahul Ashit ShroffCFO (not on board; website "Finance Director")1 Jun 2023MBA NYU Stern; MS USC; PepsiCo, EssilorLuxottica, General Mills; no prior listed-CFO or chemicals role
Hitesh ShethFormer CFOFrom 1 Sep 2021Reason for 2023 change [gap]
Kiran Rajendra AgrawalCS & Compliance Officer1 Feb 2022ACS A13188
Dr Chitra VaidyaVP R&D—Retired 30 Sep 2026

Four of five IDs inducted 1 Mar 2022, ~6 weeks before the first DRHP; first terms may end ~Feb-2027. One woman ID. No nominee director. Committee composition [gap]. Past directors: Arun Keshav Dudhane (to 31 Mar 2020); Jatin Narendra Parikh (WTD to 1 Apr 2013; director to 12 Aug 2021).

Shareholding

DatePromoterFIIDIIPublicHolders
Pre-IPO (RHP)89.20% (51,735,560 sh)——10.80%—
17 Sep 2026 listing SHP75.25%0.18%6.69% (MFs 2.93%, 17,33,089 sh)17.88%1,19,467
30 Sep 2026 (Q2)Not yet filed/retrieved (due ~21 Oct). 4-quarter trend Not Available — listed Sep 2026.
Post-IPO promoter % — conflictValueSource
Exchange SHP (primary)75.25%Screener / exchange filing; Chittorgarh
RHP arithmetic (45,522,554 / 59,183,431)76.92%IPO Watch
Pre-pricing estimate77.51% (also 78%)Ipoji / A2Z / deathgamersolo
Pre-IPO alternative86.89% (vs 89.20%)Chittorgarh (likely promoters ex-group)
Pre-IPOPromoter 89.20%Post (SHP)Promoter 75.25%DII 6.69Public 17.88 · FII 0.18
Shareholding pre- and post-IPO.

IPO360 pre-IPO stakes: Usha R. Shah 11.86%, Gaurang N. Parikh 8.97%, Nishith R. Dharia 8.59%, Sachin J. Parikh 3.45% [unverified]. Holder count ≈ retail lots allotted, so this SHP is likely the allotment-date filing. Pledge 0% [single-source]; OFS shares certified free of encumbrance. A pre-IPO transfer at Rs 360 within the last year is cited without a source in one input [unverified — not traced to the Abridged Prospectus]. A "Rs 27.44 Cr pre-IPO placement at Rs 343" is contamination from another IPO — rejected. Non-promoter 10.8% pre-IPO holders [gap].

Offer for sale — Rs 420 Cr, 62,13,006 shares, all promoter/promoter group (19 holders)

SellerSharesRs Cr @676WACA (Rs/sh)
Usha Rajnikant Shah (jt N.R. Shah, Sandhya Shah)17,75,147120.00[gap]
Tushar Natverlal Dharia (HUF)7,62,11551.524.68
Bhisham Kumar Gupta (jt Raksha Gupta)~5,77,370–5,77,400 (derived)39.03[gap]
Nishith Rasiklal Dharia (jt Sonal Dharia) ⚠~5,42,750 (derived) vs 4,73,37236.69 vs 32.00[gap]
Sonal Nishith Dharia (jt N.R. Dharia)5,20,71035.20—
Gaurang Natwarlal Parikh (HUF)2,74,24518.5415.23
Pushpa Navinchandra Parikh[gap][gap]2.78
Shruti Sachin Parikh (jt Sachin Parikh)[gap][gap]62.50
Sundeep N. Parikh (jt Sheetal Parikh)[gap][gap]2.47
Tushar N. Dharia (jt Ami Dharia)[gap][gap]3.13
Others (incl. Sachin J. Parikh, Gaurang N. Parikh, Suketu N. Parikh)balance ~17.6 lakh~119.0 (Substack: "others" 158.91)—
Total62,13,006420.00

Seller WACA range in the RHP: Rs 0.09, 0.88, 2.23, 2.47, 2.54, 2.78, 3.13, 3.28, 4.68, 4.81, 5.64, 6.16, 9.77, 15.23, 15.85, 18.97, 21.25, 62.50 (IPO Watch) → 10.8x to ~7,500x at Rs 676. Per-seller attribution only partially available (above). IPO360 shows "others selling Rs 24 Cr" [unverified]. All sellers certified ≥1-year holding.

Anchor investors — Rs 149.99 Cr, 22,18,930 shares, 14 domestic anchors (7 Sep 2026)

AnchorTypeShares% anchorRs Cr% equity
Aditya Birla Sun Life InsuranceInsurer2,95,87813.33%20.000.50%
Tata AIA Life – Small Cap Discovery (ULIF)Insurer2,95,87813.33%20.000.50%
ITI Small Cap FundMF2,21,91410.00%15.000.37%
Turnaround Opportunities FundAIF2,21,89210.00%15.000.37%
Clarus Capital I – LVF 1AIF1,77,3527.99%11.990.30%
Tata India Pharma & HealthcareMF1,47,9506.67%10.000.25%
Tata India InnovationMF1,47,9286.67%10.000.25%
Edelweiss Aggressive HybridMF1,47,9506.67%10.000.25%
Nuvama Multi Asset Strategy ReturnAIF1,47,9506.67%10.000.25%
Kotak Special OpportunitiesMF1,17,8985.31%7.970.20%
Kotak HealthcareMF1,17,8765.31%7.970.20%
360 ONE Equity Opportunity – S4AIF73,9863.33%5.000.13%
Kotak Rural OpportunitiesMF60,1042.71%4.060.10%
Edelweiss Recently Listed IPO FundMF44,3742.00%3.000.07%
Total22,18,930100%149.993.75%

MFs (4 AMCs, 8 schemes) 45.34% / Rs 68.0 Cr; insurers 26.67% / Rs 40.0 Cr; AIFs ~28%. No FPIs (Paterson's "FPIs" mention not supported by the filing). MF ownership (17.33 lakh) exceeds MF anchor (10.06 lakh) — MFs also took non-anchor QIB stock.

Lock-in calendar

TrancheExpiryBasis
Anchor 50% (~11.09 lakh sh; ~Rs 92 Cr at 831; ~1.9% equity)10 Oct 2026 (Sat; tradable 12 Oct) — IPO Watch 11 Oct; Paterson 12 Oct30 days from 11 Sep allotment (Chittorgarh)
Anchor balance 50%9 Dec 2026 — IPO Watch 10 Dec; Paterson 11 Dec90 days
Pre-IPO non-promoter; promoter excess over minimum~11 Mar 2027 (computed)SEBI ICDR 6 months
Promoter minimum contribution (20%, ~1.18 Cr sh)~11 Mar 2028 (computed)ICDR 18 months

Insider / SAST

24 Sep 2026: PIT-code violation — a relative of CFO Rahul Shroff bought 300 shares (~Rs 1.91 lakh, ~Rs 637/sh) during the trading-window closure; warning issued, called inadvertent [secondary — Groww/Sahi summaries; exchange filing not opened]. Trading window closed again from 1 Oct until 48 hours after Q2 results. No promoter buy/sell, SAST Reg 29 or Reg 31 disclosures post-listing.

Related-party transactions — amounts [gap: manual RHP read]

CounterpartyRelationshipNatureAmount
Heat FabsSuketu Parikh partner; N.R. Shah family firmStores & consumables"Up to Rs 18.35 Cr" — likely Rs mn unit error [unverified]
Heatreaters & EngineersAs aboveStores & consumables"Smaller amounts" [unverified]
Maxima FRP ProductKunal Dharia partnerSales ~0.08–0.32/period; purchases ~0.60 (Rs Cr or mn)Small [unverified]
Pratech Brands Pvt Ltd (2021)Directors Sachin Parikh, Anvi Shah, Neehar Modi; once at Prasol House addressUnknown — check rent, ICDs, guarantees[gap]
Friends Fab Form Pvt Ltd (1989)Directors N.R. Shah, Sandhya Shah, Suketu Parikh, Dipti ParikhNot seen as RPT—
KMP / directorsRemuneration; sitting fees—Top-3 ~Rs 7 Cr fixed

Auditor

ItemDetail
Statutory auditorCNK & Associates LLP, Mumbai (est. 1936); joint with S.V. Shanbhag & Co. at the 2022 DRHP, now sole; exit reason and first appointment date [gap]
IFC opinionModified FY24, FY25, FY26 — item-wise inventory quantity/value, stage of completion, manual overhead allocation; "system design and limitation"; ERP fix with no date, vendor or budget. Restated financials unqualified.
Emphasis of matter FY26Rs 2.922 Cr IPO expenses held in other current assets
Q1 FY27 reviewUnmodified
NFRAInspection report on CNK dated 27 Mar 2026 (inspection Oct–Nov 2025): firm-wide gaps (independence documentation, file assembly, post-signing changes); no penalty; not Prasol-specific
Certifying CA (IPO)Shah Mulewa & Associates (FRN shown "0143170W" — malformed)

Criminal proceedings against MD Gaurang Parikh (as occupier)

Count conflict: 4 pending complaints from Mahad incidents (multibagg RHP digest; also used by market commentary) · 5 including the separate SCC/1004/2025 Factories Act case (multibagg case list) · 6 criminal proceedings against promoters (Abridged Prospectus §12 / IPO Watch). All three shown; RHP litigation table needed.
CaseFiledLawIncidentStatus
RCC/15/20234 Feb 2023MFR 1963 r.73N(1)(f),(h)14 Nov 2022 (1 death)Pending; summons 15 Dec 2023
SCC/1157/202327 Oct 2023Factories Act 19489 Aug 2023 chlorine leakPending; bail 31 Jan 2025
RCC/177/202320 Nov 2023MFR r.73H(1)5 Oct 2023 H₂S leakPending; bail 31 Jan 2025
SCC/1208/202321 Nov 2023FA s.7A(2)(a)5 Oct 2023Pending; bail application 24 Jan 2025
SCC/1004/202514 Oct 2025FA s.7A(2)(a) r/w s.92Likely Aug-2025 show-causePending; listed 14 Aug 2026; summons not received

Plant incidents and regulator actions

DatePlantEvent
27 Feb 2018KhopoliMPCB closure ~55 days (to 23 Apr 2018) — chemicals above limits in sewage-pipe samples
21 Sep 2020Khopoli2 contract workers died dismantling an acetone-recovery reboiler
17 Feb 2021KhopoliFire during dismantling; Rs 25,000 fine (DISH)
14 Nov 2022Mahad1 death, 1–2 others affected; described as caustic-lye tanker transfer or H₂S event; MPCB notice 16 Nov 2022; odour-control directive 16 Feb 2023
9 Aug 2023MahadChlorine leak (failed rupture disc) — 4 exposed; no fatality
5 Oct 2023MahadH₂S/SO₂ leak in DETP — 1 death, 4 hospitalised (ThePrint)
27 Oct 2023 – 3 May 2024MahadMPCB closure; restart on scrubbers, detectors, bank guarantee
Oct 2024MahadShow-cause: untreated effluent into Savitri River, coal-ash dumping [single-source]
27 Mar 2025MahadShow-cause: hazardous waste, coal ash, BG, aeration tank
19/25 Jul 2025MahadFire (no injury); show-cause on ETP sludge, spent HCl; reply 2 Aug
22 Aug 2025MahadDISH show-cause s.7A(2)(a); reply 10 Sep 2025
22 Sep 2025MahadSafety-audit directive (audit 4 Oct, report 4 Nov 2025); P255 drum-flaker notice fixed 4 Nov
Totals—4 deaths in 3 incidents (Khopoli Sep-2020: 2; Mahad Nov-2022: 1; Mahad Oct-2023: 1); 2 closures; ~5 MPCB notices at Mahad

Other: Labour Court Thane IDA/0000052/2026 (8 May 2026) pending. No SEBI/MCA/RBI actions found. RHP reportedly states no material group-company litigation.

Subsidiaries & group

EntityStatusNotes
Prasol Aromatics Pvt Ltd (U20114GJ2023PTC145925, Vatva)Subsidiary, inc. 1 Nov 2023, Rs 15 lakh; struck off 22 Jul 2025Co-directors Mamania and Dalwani families; nil contribution
Sahyog Aromatics Pvt Ltd (2021)Promoter-family linkedDirectors S.H. Dalwani, Anvi Shah — adjacent business; check non-compete
Pratech Brands; Friends Fab Form; Heat Fabs; Heatreaters; Maxima FRP; Nishith Electric (owner unconfirmed [inference])Promoter entitiesNon-competing businesses
Current statusStandalone; no operating subsidiaries/associates; no acquisitionsRHP Group Companies list [gap]

IPO history: 2022 vs 2026

Item2022 DRHP2025 DRHP / 2026 RHP
Filed13–22 Apr 202214–15 Oct 2025; RHP 2 Sep 2026; RoC 3 Sep
SEBI observation23 Aug 2022 (lapsed ~Aug 2023, never launched; no stated reason)~27 Mar 2026 (reported)
Size~Rs 700–800 CrRs 500 Cr
Fresh / OFSRs 250 Cr / 90 lakh sh (pre-IPO placement up to Rs 50 Cr)Rs 80 Cr / 62.13 lakh sh (Rs 420 Cr, 84%)
Debt objectRs 160 Cr (+Rs 30 Cr WC)Rs 60 Cr
BRLMsJM Financial + DAMDAM only (some outlets list JM/Axis/DAM for 2025 DRHP [unverified])
ValuationNot disclosedRs 4,001 Cr at Rs 676 (Chittorgarh Rs 3,971 Cr does not reconcile; "Rs 6,001 Cr" wire error)
ContextExports 21.24%; top-10 17.78%Lapse coincided with 2022–23 IPO slump, FY24 trough, Mahad incidents — causation not established

Governance red-flag register

#FlagSeverity
14 deaths/3 incidents; 2 closures; notices into 2025High
2Criminal complaints vs MD (4/5; 6 vs promoters per AP)High
3IFC modified 3 yrs on inventory; manual processesMed-High
4DRI MEIS ~Rs 14.85 Cr; contingents Rs 109 Cr (24% NW)Medium
584% OFS at very low WACA; listed −10%Medium
6Family voting pacts; 4 promoter-family EDs; executive chairMedium
7OCF/PAT ~0.6x; receivables +41%Medium
8CFO change 2023; CFO lacks listed/chemicals experience; VP R&D exitLow-Med
9PIT breach by CFO relativeLow
10Struck-off subsidiary; NFRA findings on auditor firm; 2022 IPO lapse unexplainedLow

Mitigants: Acuité A+/A1+ (2024); D/E 0.19–0.25x; no pledge; no SEBI/MCA action; established auditor; experienced IDs; 30+ yr record; ~75% promoter ownership.

Supply Chain

↑ Upstream — what Prasol depends on

InputUseSource / dependencePrice
AcetoneWhole acetone chainLargest Indian importer CY22–25 [secondary]; domestic supply: Deepak Phenolics Dahej (~200–220 kta), HOCL; new east-coast source emergingFY26 Rs 59.81/kg (−26.9%); India Rs 55.7 (Jan-26) → 103.3 (Mar) → 123–126 (Jun); CIF US$928/t Jul, $1,068 Aug. Deepak Dahej shutdown from 3 Apr 2026; customs duty nil 2 Apr–30 Jun 2026
Yellow phosphorusP₂S₅, P₂O₅, PCl₃ chainsTop-5 Indian user; Prasol imports from Vietnam (Volza); India sources Vietnam, Kazakhstan, China, USRs 353.81/kg FY26 (+8.79%); China YP +15.5% in Q2-2026 to ~US$4,909/t
Chlorine, sulphurChlorides, P₂S₅, PSCl₃Not disclosed (likely local chlor-alkali / refinery)n.d.
Alcohols (ethanol, methanol, isobutanol, octanol, IPA)Dithiophosphates, DETC/DMTC, estersSuppliers not disclosedn.d.
HydrogenHydrogenationCaptive (EIA proposed 5,000 Nm³/day)—
EnergyBoilers, co-gen (coal ash implies coal-fired utilities)Power & fuel Rs 59.6 Cr—
Traded goodsDistributionRs 175.1 Cr FY26 (Rs 134.3 Cr FY25), ~14% of revenue—
Import / supplier metricValueSource
Imports % of RM procurement FY2665.96% (~71% FY19)Kotak Neo, Bajaj [secondary]; Acuité 2020
Implied imported RM~Rs 432 Cr of Rs 655.1 Cr purchases [Est.] · ~Rs 550 Cr (SP Tulsian)Different bases
Import shipments by countryChina ~37%, Thailand ~10%, Vietnam 4%, Saudi 4%, Singapore 4% (counts)Eximpedia snippet [secondary]
Top-3 suppliers39.75% of material; no long-term contractsSamco [secondary]
Named suppliersNot found—
Payables by currency Mar-26CNY Rs 4.2 Cr (Mar-25 10.2); USD ~Rs 108.5 CrAR
RM at port / LCs outstandingRs 26.2 Cr / Rs 82.7 CrAR
Net forex short~Rs 200 Cr (imports ~550 vs exports ~350); hedging policy undisclosedSP Tulsian

Pass-through: spread-based with a lag → inventory gains in rising markets (Q1 FY27 ~Rs 25 Cr), compression in falling/dumping markets (FY24 6.9% margin). Formula clauses not disclosed. Management "does not speculate in raw material". Mitigants: floating-roof storage (Rs 25 Cr), multi-geography sourcing, imports stocked from January, supplier credit in both chains. Single-source risks: YP oligopoly (Vietnam, Kazakhstan, China); one large domestic acetone producer whose 2026 outage moved prices.

↓ Downstream — who depends on Prasol

ConcentrationFY24FY25FY26
Customers1,5601,586 (CareEdge 1,584; one article 1,107)1,618
Top-1n.d.n.d.4.88% [secondary]; mgmt: largest ~Rs 55–60 Cr of FY27E ~Rs 1,550 Cr (3.5–3.9%)
Top-510.32% (Rs 90.4 Cr)14.18% (Rs 143.6 Cr)15.41% (Rs 190.0 Cr) — blog 15.69%
Top-1018.46%21.96%23.68% (9M FY22: 17.78%; Q1 FY27 deck ~25%)
Repeat-customer revenue93.28% [secondary, Samco]; ~90% sold direct to end users
Named customerSourceConfidence
Coromandel International, PI Industries, Lubrizol India, BPCLAcuité 2024High
Lubrizol, UPL, Clean Science & Technology, Yasho Industries, Supriya LifescienceCompany websiteMedium
Rallis IndiaHistorical job work; awardHigh
Bayer CropScience, Dr. Reddy's (and PI)Planify unlisted-share portalLow — not in RHP

End-products: engine oils (ZDDP), packaging inks and coatings (DAA/IPH/HG), shampoos and surfactants, fragrances (a "lemon" note), antiseptics (pipeline), OP insecticides, API chlorination steps, mineral flotation, bitumen emulsions and concrete admixtures, flame retardants. Stickiness: approval cycles 1–4 years (a lube MNC took 2–2.5 years); eight customers of 10–16 years grown from 1 to 4–9 products; dedicated streams; US-lab approval for a mining reagent; "nobody has left us". Contract tenor: not disclosed; dedicated streams only after 3–4 years of demand visibility; short-term POs (ICICI Direct risk note).

Value-chain map

Crude/naphtha → benzene + propylene → cumene → PHENOL + ACETONE
  (Deepak Phenolics, HOCL; Asian/ME producers: China, Thailand, Korea)      [price-setter]
Phosphate rock + coke + power → YELLOW PHOSPHORUS (Vietnam, Kazakhstan, China) [oligopoly]
Chlor-alkali → Cl2 ; refineries → S ; alcohols, ZnO ; captive H2
                │  ~66% of RM imported, mostly via JNPT
                ▼
PRASOL (Khopoli 78.8 kt + Mahad 19.9 kt; ~73% utilised) — conversion spread, GM 26→31% FY24–26
  Acetone: DAA → MO → (MIBK/MIBC); DAA → HG; acetone → IPH → TMC-one/-ol → 3,5-xylenol
  P: P4 → P2S5 → thio acids → ZDDP / Na-DTP; P4 → PCl3/POCl3/PCl5/PSCl3 → DETC/DMTC; P4 → P2O5 → PPA
  + technical distribution (~14% of revenue traded)
                ▼
Formulators/MNCs: Lubrizol; UPL, PI, Coromandel, Rallis; Supriya; paints/inks; HPC; miners; BPCL
                ▼
End users: engine oils, crop protection, APIs/antiseptics, coatings, personal care, mining, construction
Where pricing power sits. (1) Upstream global acetone/YP producers set price — Prasol is a price-taker exposed to INR/USD. (2) Prasol has moderate niche power: sole Indian isophorone maker, 60–70% claimed share in targeted acetone derivatives, leading P₂S₅/DETC supplier → import-parity pricing plus approval switching costs. (3) Large MNC buyers have procurement leverage, offset by top-1 <5%. (4) Threats: Chinese overcapacity; Deepak's 40 kta MIBK; new domestic acetone (cheaper feed but integrated rivals). Revenue/tonne −10% FY26 indicates pass-through, not pricing power.

Competitive Position

Peer relevance screen

CompanyRelevanceVerdict
Excel IndustriesWorld No.1 DETC; top-5 phosphonates; makes P₂S₅, PCl₃, PCl₅, TPC; named by CareEdgeClosest listed direct competitor
Deepak Nitrite (Deepak Phenolics)Largest phenol/acetone maker (200 KTA); supplier; first Indian MIBK (40 KTA, 2025); anti-dumping petitionerSupplier and partial competitor
Aarti IndustriesBenzene chain; no acetone/P overlapRHP valuation peer
Atul1,300 products; end-market overlapRHP valuation peer
Laxmi OrganicAcetyls, fluoro; solvent overlapRHP valuation peer
Vinati OrganicsNiche monomers; high-margin templateRHP valuation peer
Privi SpecialityPinene aroma chemicals; HPC/F&F overlapRHP valuation peer
Yasho IndustriesLube additives, antioxidantsPartial end-market peer
Navin Fluorine; Camlin Fine; BhagiradhaNo feedstock/product overlap (Bhagiradha a potential customer class)Not peers
Global/unlistedAcetone: Evonik, Arkema, Solvay, Altivia, Monument, TASCO. P: Italmatch, Perimeter, Hubei Xingfa, Liaoning Ruixing. India P₂O₅ leader Sandhya OrganicProduct-level competitors

Peer comparison (Screener consolidated, peers at 5 Oct 2026; Prasol restated to CMP Rs 831)

CompanyMcapFY26 RevGrowthEBITDA%PAT%RoERoCEP/E TTMEV/EBITDAMoat
Prasol4,9181,232.6+21.7%11.3%6.7%20.4% (Scr 20.6%)22.4% (Scr 23.5%)41.1x26.1x (30.2x ex one-off)Sole isophorone maker; 150+ products; permits
Aarti Inds17,6498,286+14.0%14.1%5.1%7.1%6.9%33.8x16.8xBenzene scale; MNC contracts
Atul17,6376,274+12.4%16.5%11.0%11.5%14.9%22.2x12.8x (15.0x gross)1,300 products; integration
Laxmi Organic5,2282,847−4.6%6.0%2.8%4.1%4.7%41.6x22.5xAcetyls scale
Vinati Organics12,2642,227−0.9%29.4%19.9%14.9%19.8%27.3x18.2xNiche leadership; debt-free
Privi Speciality13,6662,564+22.0%25.4%12.4%26.0%22.3%39.1x22.0x>20% global share in 10 products
Excel Industries1,1561,095+12.0%10.4%6.9%4.6%6.2%16.2xn.m. (~10.2x gross)World No.1 DETC
Deepak Nitrite21,3297,887−4.8%12.5%7.0%9.8%11.4%26.9x17.1x~50% phenol/acetone share
Yasho Industries5,013830+22.8%17.2%3.0%5.9%9.0%87.0x30.3xLube additive niches

EV = mcap + Mar-26 borrowings − investments. Prasol EV uses pro-forma net debt ~Rs 8.8 Cr (pre-repayment net debt Rs 85 Cr would give ~26.5x TTM).

IPO-date valuation set ("Basis for Offer Price", FY26)

CompanyEPSP/ERoNWNAVAlt. set 3 Sep P/E
Prasol @67614.3347.17x (48.13x diluted)18.53%77.33—
Aarti11.5646.75x7.04%164.2734.8x
Atul230.2528.04x10.95%2,136.4624.0x
Laxmi2.8759.74x4.00%71.6638.8x
Vinati42.8030.95x14.03%304.9927.3x
Privi81.0842.67x21.99%368.7937.7x
Yasho20.95206.68x5.69%368.1893.2x
Excel60.1917.12x4.44%1,354.7418.2x

Premium at IPO — conflict by method: ~16% vs the 5-peer RHP average 41.6x; ~10% vs the 7-peer median 42.7x (mean 61.7x incl. Yasho, 37.5x ex); ~36% vs the 3-Sep set median 34.8x. INDmoney's "peer average 61.74x" does not reconcile — rejected. Which set is the RHP's is unverified.

Market position and share

Claim / marketValueBasis
Only Indian isophorone maker9,000 MTPARHP/CareEdge; MPCB EC
Largest Indian acetone importerCY22–CY24 (CareEdge) / CY22–CY25 (RHP)Volume for processing
Top-5 YP importer/userCY22–CY24 / CY22–CY25CareEdge / RHP
Share of Indian "other" acetone derivatives (Rs 13.5 bn CY24)~26–36% [Est.]FY25 acetone revenue Rs 4,833 mn; ~26% ex exports
Share of total Indian acetone derivatives (Rs 68.1 bn 2024)~7% (deck basis ~6% of Rs 84 bn)Diluted by BPA/MMA/IPA
Phosphorus shareNot computable (~0.4% of Rs 1,221 bn, 87% fertiliser)—
Global isophoroneEvonik integrated leader (Marl/Herne, Mobile, Shanghai 50 kt/yr)Prasol 9 kt niche
Global P₂S₅US$607 mn 2024 → 732 mn 2032; Perimeter ~44%, top-5 ~75%Low-grade aggregator
CareEdge FY25PrasolAtulAartiLaxmiPriviVinatiExcelYasho
Customers1,5844,000+1,100+750+n/a40+700+2,000+
Products150+1,300100+50+75+3830+148+
Export %28%44%52%36%70%55%16%65%
Employees6563,3596,000+1,000+1,0001,279503820+
R&D team18 (Kotak Neo 37)242n/a100116n/a3230

Industry size (CareEdge Oct-2025; CAGRs recomputed)

MarketHistoricalForecastCAGR
Global specialty chemicalsUS$721 bn (CY19) → 1,190 bn (CY24)US$1,748 bn CY29P10.5% / 8.0%
Indian specialty chemicalsRs 2,240 bn (FY19) → 5,046 bn (FY25)Rs 7,474 bn FY29P (RHP: 5,563 FY26 → 7,541 FY29)14.5% / 10.3%
Global acetone derivativesUS$20.7 bn → 22.7 bn (2024)US$28.5 bn 2029P1.9% / 4.6%
Indian acetone derivativesRs 35.6 bn → 68.1 bn (2024)Rs 102.6 bn 2029P; RHP Rs 83.9 bn FY2613.8% / 8.5%
…"other" (DAA, IPH, HG, MIBK)Rs 12.1 bn → 13.5 bnRs 18.2 bn6.2%
Global phosphorus derivativesUS$80.1 bn → 126.4 bnUS$175.0 bn (deck US$144 bn)6.7%
Indian phosphorus derivatives (87% fert.)Rs 514 bn → 998 bnRs 1,597.5 bn (deck Rs 1,221 bn)9.9% (CareEdge 11.1%)
Indian P₂O₅Rs 34.7 bn → 38.3 bnRs 47.5 bn4.4%
Global P₂S₅US$0.48 bnUS$0.60 bn4.6%
Indian performance chemicalsRs 141.1 bn → 297.7 bnRs 448.4 bn10.8%
Indian pesticides~US$6 bn FY24US$13–15 bn FY288–10%
Indian API intermediatesRs 564 bn FY25Rs 952 bn14.0%
Indian HPC chemicalsRs 67.2 bn → 151.4 bnRs 224.2 bn10.3%

Acetone supply shift

ProducerCapacityTimingImplication
Deepak Phenolics200 KTA acetoneExistingSupplier; petitioner
Haldia Petrochemicals (Adplus)~185–215 KTPA acetone (phenol upgraded to 345 KTPA); Rs 6,000 CrCommissioning 14 Oct 2026Domestic option; leverage shift if duty imposed
Deepak Chem Tech+300 KTA phenol, 185 KTA acetone, 100 KTA IPA (Rs 3,500 Cr)No timelineForward-integration risk
Deepak MIBK40 KTA (~52 KTA captive acetone)2025Direct competition in MIBK-type products

Policy and regulation

PolicyStatusDirection
Acetone anti-dumping probe (Singapore, Korea, Taiwan, Thailand); petitioners Deepak, HOCL; POI CY2025Initiated 19 Mar 2026; final findings likely ~Mar-2027; prior sunset-review historyNegative — raises landed cost
Acetone QCO (IS 170) eff. 13 Mar 2024Not on Jul/Nov-2025 withdrawal lists; status unconfirmedNegative-neutral
Anti-dumping on derivatives (IPH, DAA, MIBK, P₂S₅)None; DGTR P₂O₅ (China) case status unverifiedNo output protection
PLI chemicalsProposed, not notifiedNone
RoDTEP/MEISDRI MEIS show-cause (~Rs 14.85 Cr)Negative
MSIHC → CAEPPR; Factories Act; MFR 73H/73NOngoingHigher compliance; basis of prosecutions
Pesticides Management Bill 2020; proposal to ban 27 pesticidesPendingOP intermediate demand risk
US tariffs50% (2025) → 18% (deal 2 Feb 2026); Americas ~5% of revenueLow direct risk

Porter's five forces

ForceIntensityRationale
Supplier powerHighTwo commodity feeds; RM ~61% of opex; 66% imported; domestic producers seek duty
Buyer powerModerateFragmented but rising concentration; MNCs dual-source; realisation/t −10%
New entrantsModeratePermits and approvals deter; integrated producers and China can enter; capex only ~Rs 4,600/t
SubstitutesLow-ModSolvent substitution; EVs erode ZDDP long-run; VOC rules
RivalryHigh exports / moderate domesticEvonik, Arkema, Solvay, Italmatch, Perimeter, China; domestic Excel, Sandhya

Barriers: 1–4 yr qualification; hazardous-chemistry permits; process know-how (aldol, hydrogenation, oxidation, pyrolysis, halogenation, high pressure); feedstock logistics scale. Moat: narrow, moderately durable (~3–5 years) [Analyst View]. China+1 (Dual Control, wage gap US$9.4 vs 2.13/day, US tariffs; India ~11% vs China ~5% growth 2025–29) is offset by Chinese overcapacity/dumping (2023–24 glut). Agro destocking after the 2023 El Niño (exports Rs 432 → 347 → 361 bn FY23–25) is "broadly complete"; ICRA saw subdued FY26 agro margins.

Strengths and weaknesses vs each peer

PeerPrasol strongerPrasol weaker
ExcelGrowth +21.7% vs +12%; RoE 20% vs 4.6%; 150+ vs 30+ productsExcel debt-free with Rs 1,126 Cr investments; DETC leader; 16x P/E
Deepak NitriteDownstream mix; RoE 20% vs 9.8%Controls feedstock; ~6x size; petitioner; integrating forward
Aarti~3x RoE/RoCE; net D/E 0.19 vs ~0.66.7x revenue; MNC contracts; 14% margin
AtulRoE 20% vs 11.5%; growth16.5% margin; 1,300 products; 22x P/E
LaxmiGrowth, margin, RoEScale
VinatiGrowth, RoE29% margin; debt-free; 27x
PriviLower leverage (Privi borrowings Rs 1,021 Cr)25% margin; 26% RoE; similar P/E
YashoRoE, PAT margin, leverage17% EBITDA; 65% exports

Common weaknesses: worst disclosed safety record in the set (peer data not quantified); leased MIDC land; two plants in one state; Mahad under-utilised.

Risks & Red Flags

#RiskCategorySeverityExplanationMitigant
1Process safety and fatalitiesESG/ExecutionHigh4 deaths in 3 incidents (Khopoli Sep-2020: 2; Mahad Nov-2022: 1; Mahad Oct-2023: 1); fires Feb-2021, Jul-2025; chlorine leak Aug-2023Scrubbers, detectors, DCS, ISO 45001, EHS WTD
2Regulatory plant closureRegulatoryHighKhopoli 55 days 2018; Mahad Oct-2023 to May-2024; notices Oct-24, Mar-25, Jul-25, Aug-25, Sep-25; Khopoli ~80% of capacityRestart conditions met; two sites; Dheku
3Criminal proceedings vs MDGovernanceHigh4/5 cases vs MD; 6 vs promoters (AP) — conflict; Factories Act and MFR 73H/73NPenalties typically fines; no SEBI action
4Feedstock spread volatilityBusiness/MacroHighEBITDA margin 6.9%–20.8% in ~2.5 yrs; FY26 aided by −27% acetone; Q1 Rs 25 Cr windfall150+ products; pass-through; 15–16% guide
5Acetone anti-dumping dutyRegulatoryHighFindings ~Mar-2027; raises landed cost; petitioners are potential rivalsDomestic supply; Advance Authorisation; China not named
6Domestic forward integrationBusinessMedDeepak MIBK + 185 KTA; HPL from Oct-202621 acetone derivatives; approvals
7Import / China dependenceMacroMed66% imported; Hormuz-type disruption; Chinese P policyMulti-country sourcing; LC lines
8CurrencyFinancialMedNet USD short ~Rs 200 Cr; hedging undisclosed27% exports
9Cash conversion / WCFinancialMed-HighOCF 115.6 / 22.3 / 49.5; receivables +Rs 81.7 Cr; 2-yr FCF ~Rs 10.5 Cr; Acuité WC triggerIPO debt repayment; ~Rs 307 Cr unused lines
10Re-leveraging for capexFinancial/ExecutionMedRs 500–600 Cr vs NW Rs 448.5 Cr; NFB Rs 227 Cr; lender consent on change of controlNet D/E 0.19; A+ rating
11Mahad under-utilisationExecutionMed44% FY26; PBT losses 22.8/15.8/12.2Q1 FY27 turnaround claimed
12Capex execution (+60 KTPA by FY29)ExecutionMed2–3x historical spend; ECs in closure-history stateSpare land; know-how
13IFC modification on inventoryGovernanceMedFY24–26; ERP undatedAudit committee
14Rising contingentsFinancialMedRs 109.1 Cr (24.33% NW) vs 46.8 FY25; composition conflictMostly commitments/LCs
15Tax/DRI MEISRegulatoryMedRs 14.85 Cr (Substack) vs Rs 0.68 Cr (AR); 9 tax + 16 regulatory proceedings, Rs 6.18 Cr quantifiableUnder appeal
16Promoter exit; lock-in overhangGovernance/MarketMed84% OFS; WACA Rs 0.09–62.50; Rs 360 pre-IPO transfer [unverified, uncited]; anchor unlocks 10 Oct / 9 Dec; ~Mar-2027 6-month unlockNo pledge; 75% retained
17Family control / successionGovernanceLow-Med8 voting pacts; 10 promoters; Jatin Parikh reportedly died 24 Aug 2026, shares untransmitted [unverified]Company not party; 5 IDs
18Customer concentration creepBusinessLow-MedTop-10 18.46 → 23.68%; only 58 net adds in 2 yrsTop-1 <5%
19Agro/lube end-market cycles; EVs vs ZDDPBusiness/MacroMedFY24 trough with destockingFive end-markets
20Leasehold MIDC landRegulatoryLow-MedLease-dispute hearing pending since Apr 202695–99 yr leases
21Key-person / R&D depthExecutionLow-MedVP R&D retired 30 Sep 2026; team 18–3713 launches in 3 yrs
22Q2–Q4 step-down vs valuationMarketMedNeeds Rs 58–62 Cr clean EBITDA/qtr vs Q1 Rs 90 Cr reported+26–34% revenue guide
23ESG — effluent, coal ash, GHGESGMedSavitri River allegation; no BRSR yetISO 14001; ETP upgrades
24Labour disputeRegulatoryLowIDA/52/2026 ThaneIsolated
25Compliance cultureGovernanceLowCFO-relative PIT breach 24 Sep 2026Warning issued

RHP top-10 internal risk factors mapped

RFThemeRegister
(a)Dependence on facilities; past MPCB shutdowns; under-utilisation#2, #11
(b)Hazardous materials; accidents may cause loss of life#1
(c)Outstanding litigation (company, promoters, directors)#3, #15
(d)Volatile OCF; risk of negative OCF#9
(e)DISH Raigad show-cause vs G.N. Parikh#3
(f)Emphasis of matter FY24–26; IFC modified#13
(g)Contingent liabilities Rs 109.1 Cr (24.33% NW)#14
(h)Demand depends on customers' end-products#18, #19
(i)Approvals, licences, permits#2
(j)Capacity/utilisation data are estimates#11, #12

Red-flag checklist

Red flagStatusEvidence
Rising debtWatch82.1 → 101.1 → 110.1 Cr; capex to re-lever
Margin deteriorationWatch20.8% → 15–16% guided
Auditor concernsYesIFC modified 3 yrs
Related-party abuseNot evidencedAmounts unread
Promoter sellingYesRs 420 Cr OFS
DilutionLow2% fresh
Customer lossNot evidencedConcentration rising
Litigation/taxYesCriminal, DRI, contingents
Commodity/FX/ratesYesSpreads; USD short; on-demand WC loans
Technology obsolescenceLow-MedEVs; VOC rules
Key-personMedPromoter-run; VP R&D exit
Safety/ESGCriticalItems 1–3, 23

Concall Highlights & Guidance

Coverage limits. One earnings call exists: the maiden Q1 FY27 call on 29 Sep 2026, 11:00 IST, hosted by DAM Capital (the BRLM; analyst Nitin Agarwal, contact Karan Talwar). Speakers: Nishith Shah (Chairman), Dhaval Parikh (Jt MD), Rahul Shroff (CFO). The transcript was filed on 5 Oct 2026 but timed out on NSE (five attempts) and returned as undecodable binary from the company site. Analyst Q&A was NOT retrieved, and call quotes below come from secondary write-ups (cruxal, multibagg, whalesbook, scanx, Trade Brains). Q1–Q4 FY26: no calls (unlisted). A 4–6-quarter guidance-vs-actual record does not exist.
Where we lookedResult
NSE announcementsTranscript filed 5 Oct 2026; fetch timed out
Company IR pageTranscript, deck, board outcome, call intimation, trading-window notices (16 and 30 Sep), AGM notices 30th–34th; PDFs undecodable
TrendlyneIndex page; YouTube recording link
ScreenerOnly Q1 FY27 (transcript, PPT, recording)
BSEResults cover letter 28 Sep (HTTP 403)
earningspulse.aiCall announcement (403)

Q1 FY27 — results 28 Sep, call 29 Sep 2026

Rs CrQ1 FY27Q1 FY26YoYQ4 FY26
Revenue from ops433.65319.6+35.7%~335
Gross profit (margin)164.5 (37.9%)95.8 (30.0%)+71.7%n/a
EBITDA (margin)90.3 (20.8%)40.6 (12.7%)+122%~32 (~9.6%)
PBT83.5632.78+155%n/a
PAT (margin)61.02 (14.1%)24.34 (7.6%)+151%19.56
EPS (Rs)10.524.203.37–3.42
ThemeWhat management said (as reported)Source
Growth"Healthy year-on-year revenue growth, driven by better realisations, higher volumes and an improving product mix"; "highest ever on many key parameters"cruxal (Chairman's message)
Mix"Product mix improved as secondary and tertiary derivatives grew in both value chains"; Q1 mix ~40/40/20; acetone ~40–43%, P ~38–40%, others ~19–20%; domestic 73/exports 27; top-10 ~25%multibagg
Mahad"Record levels of production"; utilisation ~13% FY24 → 44% FY26; "has now turned sustainably profitable"; Khopoli at "optimum utilisation" ~78,800 TPATrade Brains; transcript extract via scanx
Margin caution"The unusually high margin seen during the quarter might not be entirely sustainable"; ~Rs 25 Cr from "sharp increase in average selling price due to geopolitical-led supply chain issues" + Rs 0.92 Cr FX; normalised GM 30–32%; EBITDA 15–16% for rest of FY27Trade Brains; whalesbook; scanx
ExportsGrew YoY but "shipments were held back by geopolitical tensions related to the West Asia conflict"; Africa/Dubai hit, Europe offset; still exporting to US and China; Houston/Rotterdam/Shanghai pointsscanx; call
GuidanceFY27 revenue Rs 1,550–1,650 Cr; EBITDA Rs 240–250 Cr "excluding price fluctuations due to geopolitical-led supply chain issues and forex gains/losses"; 5-yr Rs 2,800–3,000 Crmultibagg; whalesbook
Capex (new)Phase I Rs 250–300 Cr + 50–60 infra; Phase II Rs 250–300 Cr from H2 FY28; funding accruals + debt; "antibacterial drug facility" mechanical completion Jan-2027; mining chemicals, lube additivesmultibagg; scanx
R&D37-member team; 40-product pipeline, 9 past pilot; 13 commercialised Apr-23 to Jun-26multibagg
Balance sheet"Post-IPO… paid off all debt" [unverified — contradicts disclosed borrowings]Transcript extract
Working capital50 days FY26 vs 37 FY25; receivables Rs 278.7 Cr; inventory Rs 153.2 Crmultibagg
OmissionsNo QoQ (Q4 FY26) comparison; no numeric domestic/export split for the quarter; no order-book visibilitycruxal
Management changeVP R&D Dr Chitra Vaidya retired 30 Sep 2026 (noted at 28 Sep board)multibagg; scanx

Open questions for the transcript Q&A: (a) why Q4 FY26 was weak; (b) how much of the Rs 25 Cr reverses in Q2; (c) debt quantum for capex; (d) Mahad MPCB status; (e) VP R&D exit; (f) the CFO-relative trade; plus management views on acetone anti-dumping and China competition.

IPO roadshow and media commentary

DateVenueSpeakerWhat was said
3 Sep 2026Price-band release—No management quotes; no PTI press-conference quotes found
7 Sep 2026Business Today TV "What's Hot"Nishith Shah, Rahul Shroff33-year legacy; 69 export markets; proceeds to debt reduction and "expanding the acetone and phosphorus value chains"; RoCE maintained (paraphrase only)
~8 Sep 2026CNBC-TV18 YouTubeUnnamedTitle only: "Margin Expansion, New Products & Capex Plans"
17 Sep 2026Trade BrainsManagement (unnamed)~Rs 1,900 Cr revenue from existing assets; ~Rs 3,200 Cr long-term potential; secondary/tertiary P derivatives ~35% → ~50%; capex 50–60% existing / ~40% new molecules; R&D to be "quadrupled" in 6 months; top-10 <24%; ~90% direct
—Equitypandit (404; snippet)Shah"expects margins to expand alongside rising utilisation"
—ET Now / Moneycontrol—No interview found

Guidance-target migration (credibility tracker)

WhenTarget / claim
19 Nov 2025Debottlenecking (DAA, 3,5-xylenol, P₂S₅, intermediates); no tonnage or capex; 64,000+ sq m unused land
RHP Sep 2026Spare land (Khopoli 11.98 acres, Mahad 18.4 acres, Dheku 30,110 sqm, Mahad parcels 34,423 and 40,000 sqm); "no committed capacity additions announced"
17 Sep 2026Rs 1,900 Cr from existing assets (~1.5x FY26 with utilisation already ~72%); Rs 3,200 Cr long-term
28–29 Sep 2026FY27 Rs 1,550–1,650 Cr / EBITDA Rs 240–250 Cr; 5-yr Rs 2,800–3,000 Cr; capex Rs 500–600 Cr (13 days after listing)

[Analyst View] Tone: confident (roadshow) → confident-but-hedged (Q1 call); not defensive. Pre-emptive disclosure of the one-off is a positive. Contradictions: "debt-free" vs disclosed borrowings; roadshow "expansion" vs RHP objects with no capex; R&D "quadrupling" vs VP R&D retirement; Rs 3,200 Cr vs Rs 2,800–3,000 Cr targets unreconciled. Recurring themes: Mahad ramp, spread volatility, derivative mix shift, debottlenecking before greenfield, pipeline conversion.

Media, influencers and forums

VoiceStanceThesis
S.P. TulsianBearish-cautiousSafety notices; inventory controls; USD short; sub-peer margins; "fully priced for average fundamentals"; 39x FY27E EPS Rs 17
IPO Analysis SubstackNeutral-cautiousBull: PAT ~4.6x FY24–26, EBITDA/t ~2x, China+1. Bear: two shutdowns; Mahad losses; customers +1.9%/yr; receivable days 64 → 70; leased land
deathgamersolo SubstackCriticalBear/base/bull values Rs 440 / 580 / 720; acetone "unearned gift"
Chanakya NipothiSelective Apply (4/5)Quality but 47x and 84% OFS
Business StandardBalanced"Growth, margins impress but experts split"
FPJ / Upstox / IIFLNegative on listing"Stumbles"; "lost Rs 1,452 per lot"
5paisaPositive turnUpper circuit recovery
Whalesbook / ScanX / Multibagg / CruxalResults-led positive"Profit surges 151%"; cruxal has errors ("NIFTY +10.6%", "Khad")
ValuePickr / Reddit—No thread / not accessible
X; YouTubeInformationalGMP alerts (Mint, ET Now, Jainam, IPOwiz, Capital Insight); 7 review/listing videos; company channel

Sentiment timeline

WindowSentimentMarker
To 4 SepEuphoric (grey market)GMP Rs 165 (+24%)
5–10 SepDeflatingGMP → 0; retail 1.79x, bNII 1.22x
11–16 SepNegativeGMP −13/−15; −9.8% open
16–28 SepRecoveringUpper circuit day 1; Rs 764 by 28 Sep
29–30 SepEuphoric (results)UC; ATH 914.90 on 3.82M/2.13M volume
1–6 OctConsolidatingRs 789–831; ~0.3M/day; unlock ahead

Growth, Outlook & Valuation

Order book: not applicable. Prasol sells against purchase orders; no order book, book-to-bill or % contracted is disclosed. Visibility proxies: 1,618 customers (+58 net in 2 years), 93.28% repeat revenue, 1–4 yr approvals, top-10 23.68%. No export deals, supply agreements, acquisitions or JVs found in 36 months.

Catalyst calendar

DateEventWhy it matters
10 Oct 2026 (Sat; tradable 12 Oct)Anchor 50% unlock (~11.09 lakh sh, ~Rs 92 Cr, ~1.9% equity; ~2.3 sessions of median NSE volume)Anchors +23% in money
~10 OctSep MF portfolio disclosuresDid anchors hold?
14 Oct 2026Haldia phenol-acetone complex commissioningDomestic acetone supply
~21 OctQ2 SHPPromoter reclassification check
~26 OctBRLM research quiet period ends (indicative)DAM likely first initiator — haircut for banker link
~mid-Nov (≤14 Nov)Q2 FY27 resultsClean EBITDA ~Rs 58–62 Cr in line; >65 beat; ~50 miss
9 Dec 2026Anchor balance unlockSecond supply wave
Jan 2027Antibacterial facility mechanical completionFirst capex milestone
~Feb 2027ID first terms end (if 5-year)Re-appointment
~11 Mar 20276-month lock-in endsLarger float
~Mar 2027DGTR acetone final findingsLanded cost
H2 FY28 / FY29Phase II start / 1,58,844 MTPAGrowth delivery

Long-term drivers (3–5y): derivative mix shift; Mahad to 70%+; Phase I peak revenue Rs 500–550 Cr; R&D pipeline (15–20% conversion); China+1; pharma, HPC, mining growth. Tailwinds: Indian specialty chemicals 10.3% CAGR to FY29; API intermediates 14%; acetone derivatives 8.5%. No PLI benefit. Analyst consensus FY27/FY28: Not Available — no post-listing initiations or target prices as of 6 Oct 2026.

Valuation at CMP Rs 831 (Mcap Rs 4,918.1 Cr; EV ~Rs 4,927 Cr)

MultipleAt Rs 676At Rs 831Basis
P/E FY26 (pre-issue EPS 14.33)47.2x58.0xRHP basis
P/E FY26 (post-issue EPS 14.04)48.1x59.2x83.12 / 5.918 Cr
P/E TTM (PAT 119.8; EPS 20.24)33.4x41.1xScreener 40.8x
P/E TTM ex one-off (PAT ~100.4)39.9x49.0x[Est.]
P/E FY27 guidance — bridge method (PAT ~155–165; EPS 26.2–27.9)24–26x29.8–31.7x[Est.] FY26 EBITDA→PBT bridge ~Rs 27 Cr, tax 25.7%
P/E FY27 guidance — alternative (PAT ~140–150)27–29x32.8–35.1x[Est.]
P/E FY27E SP Tulsian EPS Rs 1739.8x48.9xThird-party
EV/EBITDA FY26 (139.32)28.8x35.4xPro-forma EV
EV/EBITDA TTM (189.0)21.2x26.1x
EV/EBITDA TTM ex one-off (~163)24.6x30.2x
EV/EBITDA FY27 guidance (240–250)16.0–16.7x19.7–20.5xGuidance, not estimate
P/B Mar-26 NAV 77.33 / post-issue 89.30 / pro-forma post-IPO incl. Q1 PAT ~99 (pre-dividend)8.7x / 7.6x / 6.8x10.7x / 9.3x / ~8.4x
EV/Sales TTM (1,346.6)3.0x3.7x
Dividend yield (DPS 1.20) / FCF yield0.18% / 0.27%0.14% / 0.22%

Guidance-basis PAT excludes the Q1 one-off and assumes the FY26 bridge holds while capex lifts depreciation and interest. 3-year average multiples: not meaningful (listed 3 weeks). Dividends: FY24 and FY25 Rs 0.30/sh (payout 9.6%, 4.0%); FY26 Rs 1.20 (Rs 6.96 Cr, 8.4%); none paid since listing. Five pre-listing buy-backs; none listed. Third-party value range: Rs 440 / 580 / 720 (deathgamersolo bear/base/bull).

Price performance since listing (NSE closes)

Issue 676open 610ATH 914.90 (30 Sep)16 Sep23 Sep29 Sep6 Oct831
Daily close (Investing.com). Day-1 close 671 (upper circuit); 29 Sep 840.15 upper circuit on Q1.
DateOpenHighLowCloseChg %Volume
16 Sep610.00671.00601.00671.00–2.21M
17 Sep653.95691.50621.00678.80+1.162.21M
18 Sep679.00734.90675.30703.40+3.621.15M
21 Sep697.05708.90671.80681.40−3.130.44M
22 Sep685.05710.40676.00704.75+3.430.41M
23 Sep710.00747.50707.25740.90+5.130.71M
24 Sep737.00750.90713.10720.70−2.730.25M
25 Sep721.00769.00718.05756.00+4.900.48M
28 Sep758.70773.90731.00763.80+1.030.48M
29 Sep799.90840.15692.80†840.15+10.003.82M
30 Sep868.25914.90812.30839.10−0.122.13M
1 Oct825.00829.00792.60814.05−2.990.56M
5 Oct822.70827.25782.15789.05−3.070.29M
6 Oct791.95846.30788.65831.00+5.320.30M

†Anomalous low, unverified. BSE listing: open 611, low 600.50, close 672.05. Listing mcap ~Rs 3,610–3,616 Cr (FPJ Rs 3,746 Cr does not reconcile). 22 Sep combined NSE+BSE 3.69 lakh sh; ~709 intraday +4.8%, no trigger. Liquidity: ~15.4M NSE shares in 14 sessions vs ~14.65M free float (1.05x turnover); median ~0.48M/day (~Rs 35–38 Cr); October ~0.3M (~Rs 24–25 Cr). No bulk/block deals (Trendlyne). Backdrop: Nifty −14.25% / Sensex −15.6% YTD; 69 IPOs raised Rs 90,500 Cr in Q3 2026.

IPO structure, subscription and grey market

ItemDetail
IssueRs 500 Cr = 73,96,437 sh; fresh Rs 80 Cr (11,83,431); OFS Rs 420 Cr (62,13,006)
ReservationQIB 50% (36,98,218 incl. anchor), NII 15% (11,09,466), retail 35% (25,88,753); no employee quota
DatesAnchor 7 Sep; bid 8–10 Sep; allotment 11 Sep; listing 16 Sep
Valuation at issueRs 4,001 Cr; P/E 47.2x; P/B 8.74x
CategoryShares bidExchange basis (54,43,229)Ex-anchor quota (51,77,508)
QIB1,12,28,1407.22x7.59x
NII20,94,994–20,95,3021.80x1.89x (bNII 1.22x / sNII 3.23x)
Retail46,39,2061.70x1.79x
Total1,79,62,6483.29–3.30x3.47x
Applications1,82,737 (Chittorgarh) / ~1,81,603 (IPOji); bids ~Rs 1,214 Cr ex-anchor (Paterson); Kotak Neo QIB 5.58x variant
Day 1 / 2 / 3 (ex-anchor)0.44x / 0.76x / 3.47x — QIB 0.00 / 0.06 / 7.59; retail 0.73 / 1.19 / 1.79. Exchange basis 0.41–0.42 / 0.72 / 3.29. Multibagg "final 0.76x" is Day 2.
GMP date3 Sep4 Sep5 Sep6 Sep7 Sep8 Sep9 Sep10 Sep11–1314–16Actual
Rs141651251155530150−15−13−66 (610)

Broker views

HouseRatingReason
SBI SecuritiesSubscribe (LT)"Reasonably valued alongside relatively better return ratios"; D/E ~0.1x post repayment; Mahad recovery
Anand RathiSubscribe (LT)Entry barriers; R&D; "48x… fully priced"; flags shutdowns
Master CapitalSubscribe (LT)Largest acetone importer; Saykha expansion [unverified]
VenturaSubscribe150+ products
Mangal Keshav, Kantilal Chhaganlal, Sushil FinanceApplyAggregator [unverified]
Capital Market; IPO WatchMay ApplyFlags Rs 109.1 Cr contingents
Swastika; SMC GlobalNeutral"limited room for error"
GEPL CapitalAvoid ⚠Conflicts with Chittorgarh tally of 0 Avoid — unconfirmed
ICICI DirectNo ratingFact sheet: 40-product pipeline; short-term POs
Chittorgarh tally6 Subscribe / 1 May Apply / 1 Neutral / 0 Avoid. Post-listing initiations, targets, upgrades/downgrades: none.

Final Verdict

Business Quality
Medium

Real niche; spread-driven

Management
Weak

Safety, criminal cases, IFC

Financial
Medium

Low debt; poor OCF

Valuation
Expensive

59x FY26 · 41x TTM

Overall
Neutral

Do not chase at Rs 831

Bull case

  1. Scarce assets: sole Indian isophorone, largest acetone converter, 1,618 customers with top-1 under 5%, 1–4-year approvals.
  2. Guide delivered: Mahad at 70%+, phosphorus +35%, mix shift; FY27 EBITDA Rs 240–250 Cr → ~20x EV/EBITDA, compounding into Phase I (Rs 500–550 Cr peak revenue) and the Rs 2,800–3,000 Cr aspiration.
  3. Clean balance sheet (net debt ~0 post-IPO), 20%+ RoE, and a domestic acetone glut from Haldia/Deepak cuts feed cost.

Bear case

  1. Margins revert: Q1 was a Rs 25 Cr windfall on top of an FY26 helped by acetone −27%; anti-dumping duty and integrated rivals squeeze spreads; Q2–Q4 fall short of the 1.7–1.9x step-up.
  2. Another EHS incident or closure (4 deaths, 2 closures, live notices, MD criminal cases) hits revenue and working capital, as in FY24.
  3. Cash does not follow profit (OCF 0.5–0.6x), capex re-levers the balance sheet, and anchor/6-month unlocks meet a stock at 41x TTM with no FII bid.

Base case (12–18 months)

[Analyst View] Clean EBITDA lands at or slightly below the bottom of the guide (~Rs 225–245 Cr) as spreads normalise and Q4 seasonality repeats. Reported numbers stay noisy from feedstock swings. OCF improves only modestly. Capex lifts debt from FY28. The multiple compresses toward the peer median (high-20s to low-30s on FY27–28E) as unlocks clear. The stock is range-bound around current levels, with downside skew into the Q2 print and the December unlock.

5 things to remember

  1. FY26 PAT Rs 83 Cr only equals FY22; margins are spread-driven (6.9% → 20.8%).
  2. Clean Q1 EBITDA ~Rs 64 Cr (~15.8%); the guide needs ~Rs 58–62 Cr a quarter vs an FY26 average of Rs 35 Cr.
  3. OCF/PAT 0.51x and 0.60x; receivables +41%; IFC modified three years.
  4. 4 deaths / 3 incidents; 4–5 criminal cases against the MD (6 against promoters per the Abridged Prospectus).
  5. 84% OFS, then Rs 500–600 Cr capex 13 days later; anchor unlocks 10 Oct and 9 Dec.

5 questions before investing

  1. What exactly reversed in Q2 — and does clean EBITDA clear Rs 58 Cr?
  2. What are the RPT amounts, the litigation table and the top sellers' WACA (RHP)?
  3. When will the ERP fix inventory controls, and why has OCF lagged PAT?
  4. How much debt will Phase I/II need, and why was the fresh issue not sized for it?
  5. What is the plan if DGTR imposes acetone duty — and who now owns process safety at board level?
What would change my viewDirection
Q2 FY27 clean EBITDA >Rs 65 Cr with OCF ≥0.8x PATUpgrade toward Positive
Stock at 20–25x clean FY27E (~Rs 520–700) [Est., illustrative]Valuation to Fair
IFC modification removed in FY27 auditManagement upgrade
Any new fatality, closure or convictionDowngrade to Negative
Acetone anti-dumping duty imposed without pass-throughDowngrade
Clean Q2 EBITDA ~Rs 50 CrDowngrade
Final opinion: Prasol is a genuine but narrow, spread-driven niche franchise. Its Q1 beat is real but flattered by a windfall. At Rs 831 (≈59x FY26, 41x TTM, ~30–35x guided FY27) the price already assumes an unproven guidance step-up and looks past weak cash conversion, a poor safety record and heavy promoter selling. Neutral — avoid chasing; reassess after the Q2 FY27 print and the anchor unlocks.

Sources

Data provenance. All URLs accessed 6 Oct 2026. RHP, DRHPs, transcript and deck PDFs could not be machine-read; RHP figures are via secondary sources and tagged. Manual RHP read still required for: related-party transaction amounts; the litigation table (Abridged Prospectus gives counts: 16 regulatory + 9 tax proceedings, Rs 6.18 Cr quantifiable, 6 criminal vs promoters); cost of acquisition for the top sellers (Usha Shah, Bhisham Gupta, N.R. Dharia); the group-companies list; and voting-pact status at listing. Also: seller-wise shares, ESOP status, term-loan schedule, NFB-limit anomaly, peer-table date, capital-commitments figure (99.11 vs 16.4), payables (109.11 vs 208.2), DRI amount (14.85 vs 0.68), Acuité surveillance status, transcript Q&A, PIT filing.

Conflict register

ItemValues (source)Used
Post-IPO promoter %75.25 (exchange SHP) / 76.92 (IPO Watch) / 77.51 (Ipoji, A2Z)75.25
Criminal cases vs MD4 (multibagg digest) / 5 (incl. SCC/1004/2025) / 6 (Abridged Prospectus)All shown
Revenue1,232.59 ops / 1,237.85 total incomeOps
FY24 / FY25 PAT18.13 vs 23.75 / 43.57 vs 39.38Restated
5 Oct close789.05 (Investing.com) / 822 (share.market)Both
Listing openNSE 610 / BSE 611 / Chittorgarh 671–672 (close)610 NSE
Anchor unlock10/11/12 Oct; 9/10/11 Dec10 Oct, 9 Dec
Subscription3.47x / 3.29–3.30x / 0.76x (Day 2)Both bases
Capital commitments99.11 / 16.4Both
Payables FY26109.11 / 208.2Both
DRI MEIS14.85 / 0.68Both
Mahad utilisation FY2644.09 / ~27 / ~100%+44.09
Top-5 customers15.41 / 15.6915.41
Countries56 / 63 / 65+ / 69All
R&D team / employees37 vs 18 / 724 vs 656 vs 600+All
Peer premium at IPO~16% (avg) / ~10% (median) / ~36% (3-Sep set); 61.74x rejectedAll
Normalised Q1 margin15.8% / 14.8% (denominator)Both
RatingAcuité A+ (Nov-24) / possibly unrated-withdrawnBoth

Company, filings and regulators

SourceURL
Offer documentsprasolchem.com/offer-documents/
RHP 2 Sep 2026https://www.prasolchem.com/wp-content/uploads/2026/09/RHP-With-RFS-BP.pdf
Abridged Prospectus (SEBI)https://www.sebi.gov.in/sebi_data/commondocs/sep-2026/Prasol%20Chemicals%20Limited%20-%20AP_p.pdf
SEBI RHP filing pagehttps://www.sebi.gov.in/filings/public-issues/sep-2026/prasol-chemicals-limited-rhp_104222.html
DRHP Oct 2025 (SEBI)https://www.sebi.gov.in/sebi_data/attachdocs/oct-2025/1761550204673_1023.pdf
DRHP Oct 2025 (NSE)https://nsearchives.nseindia.com/corporate/trampariya_16102025172325_PrasolChemicalsDRHP.pdf
DRHP Apr 2022 (BSE)https://www.bseindia.com/corporates/download/322750/Prasol%20Chemicals%20Limited%20DRHP_20220422161426.pdf
NSE board outcome 28 Sep 2026https://nsearchives.nseindia.com/corporate/8591996826_28092026213438_BMOUTCOME28092026.pdf
NSE Q1 FY27 transcript (5 Oct)https://nsearchives.nseindia.com/corporate/8591996826_05102026173651_TranscriptAnalystsMeetQ1FY27results.pdf
Company transcripthttps://www.prasolchem.com/wp-content/uploads/2026/10/Prasol-Q1FY27-Earnings-Call-Transcript-Final.pdf
Q1 FY27 investor presentationhttps://www.prasolchem.com/wp-content/uploads/2026/09/Prasol-Q1FY27-IP-Final.pdf
Annual Report FY26https://www.prasolchem.com/wp-content/uploads/2026/09/Annual-Report-25-26.pdf
Call intimationhttps://www.prasolchem.com/wp-content/uploads/2026/09/Intimation-of-Earnings-Call-29-09-2026.pdf
Trading-window closurehttps://www.prasolchem.com/wp-content/uploads/2026/09/Trading-Window-Closure_30.09.2026.pdf
Investor relationshttps://www.prasolchem.com/investor-relations/
Investor contactshttps://www.prasolchem.com/wp-content/uploads/2025/11/Investor-Contacts.pdf
Leadershiphttps://www.prasolchem.com/leadership-team/
Website / product pagesprasolchem.com; solvents; POCl₃; P₂S₅; lubricants; mining
TDS MIBK / MOMIBK; MO
CareEdge industry report 7 Oct 2025https://www.prasolchem.com/wp-content/uploads/2025/10/PRASOL_07.10.25_Industry-Report-Chemical-Industry_Prasol_Final_v3.pdf
BSE Q1 cover letter (403)https://www.bseindia.com/xml-data/corpfiling/AttachLive/bd23db2f-c791-4b2f-836d-22b69022675b.pdf
Anchor allocation letter 7 Sephttps://www.chittorgarh.net/reports/anchor-investor/prasol-chemicals-anchor-book.pdf
MPCB EIA Honad 2020https://www.mpcb.gov.in/sites/default/files/public_hearing/exe_summary/2020-03/Prasol-Honad-Executive-Summary_05032020.pdf
Mahad EC brief 2017https://environmentclearance.nic.in/writereaddata/Online/TOR/28_Feb_2017_12514021775R5S3D6PrasolBriefSummary.pdf
DGTR P₂O₅ casehttps://www.dgtr.gov.in/anti-dumping-cases/phosphorus-pentoxide-or-p2o5-originating-or-exported-china-pr
Company YouTubehttps://www.youtube.com/@PrasolChemicalsLtd/videos

Ratings

Financial databases and registries

SourceURL
Screener Prasolhttps://www.screener.in/company/PRASOLCHEM/
Screener peersAarti; Atul; Laxmi; Vinati; Privi; Excel; Deepak; Yasho
Tijorioverview; financials
Tofler Prasol / PratechPrasol; Pratech
Falcon Ebiz (Prasol Aromatics)falconebiz.com
ClearTax (Friends Fab Form)cleartax.in
Groww stock / IPOstock; IPO
IndMoneyhttps://www.indmoney.com/stocks/prasol-chemicals-ltd-share-price
Value Research (403)valueresearchonline.com
share.markethttps://www.share.market/stocks/prasol-chemicals-ltd-share
Investing.com historyhttps://in.investing.com/equities/prasol-chemicals-historical-data
Trendlyne deals / calldeals; call post
Indira Trade boardindiratrade.com
mind2marketsmind2markets.com
IPO360ipo360.in
Eximpedia (402; snippet)eximpedia.app
Volza YP imports1; 2
OEC phosphorusoec.world
earningspulse (403)earningspulse.ai

IPO aggregators, brokers and RHP extracts

SourceURL
Chittorgarh IPO / recommendationsIPO; recommendation
IPO WatchIPO; review; recommendation
Ipoji / A2Z / investorgain / ipoindexIpoji; A2Z; investorgain; ipoindex
Kotak Neo / Bajaj / ICICI Direct / Paytm MoneyKotak Neo; Bajaj; ICICI Direct; Paytm Money
InCred / Samco / SP TulsianInCred; Samco; SP Tulsian
Trade BrainsIPO; 17 Sep; 29 Sep
Chanakya Nipothi / INDmoney / Planify / Equitypandit (404)Chanakya; INDmoney; Planify; Equitypandit
Paterson Capitalanchors; subscription
multibagg RHP seriesisophorone; Mahad shutdown; promoter cases; voting pacts; inventory controls; OFS; issue/listing; borrowings; OCF; capital records; Mahad losses; Q1 results; Q1 deck/call; 22 Sep move; IPO page
Substacks / independentdeathgamersolo; ipoanalysis; abhinavmishra; inxits

News and media

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