Chemicals maker Gujarat Polysol Chemicals has received approval from market regulator Sebi for an initial public offering (IPO). The company is planning an increase €414 crore from public spending. It will offer shares with a par value of €10 each. However, details of the price range, total shareholdings for the offering and timing of the offering are yet to be announced. The company submitted its draft prospectus for the IPO in March.
Sebi submitted its observation letter to Gujarat Polysol Chemicals on July 18th. Sebi’s observation shows his approval of launching an IPO.
Out of a total of €414 crore, the company will have a reissue of shares worth €87 crore and the rest €327 crore is the Offer to Sell (OFS). As part of the OFS, promoters such as Shaileshkumar Balvantrai Desai will sell shares worth €183 crore while Umang Shailesh Desai sells shares worth €38 crore to divest Polysol Financial Services LLP €102 billion shares and Apurva International for sale €4 crore shares.
Of the total issue, 50% is reserved for qualified institutional buyers (QIB), 15% for non-institutional investors and the remaining 35% for retail investors.
INGA Ventures is the book-running lead manager for the IPO.
The Company plans to use the net proceeds to repay certain loans and for general corporate purposes.
Gujarat Polysol Chemicals is one of the leading chemical manufacturers for the infra-tech (construction), agro, dyestuffs and leather industries in India. The company is also the leading supplier of dispersants in the infra-tech, dye & pigment, textile & leather industries and a leading supplier of powdered surfactants in India.
The Company has three manufacturing bases located in Vapi and Sarigam in the State of Gujarat and one unit in the Union Territory of Dadra & Nagar Haveli and Daman and Diu. These three plants have a combined production capacity of 130,400 tons per year.
The Indian chemical market is valued at US$169 billion in 2020 (~4% share of global chemical industry), with basic chemicals accounting for almost 50%. It is expected to reach $300 billion over the next 5 years with expected ~12% CAGR growth.
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