
Dorf-Ketal Chemicals India Limited, a leading player in the specialty chemicals sector, has announced its plans for an Initial Public Offering (IPO) with a Draft Red Herring Prospectus (DRHP) filed on January 23, 2025.
The IPO, a 100 per cent book-built offer, aims to raise up to ₹50,000 million ($550 million), with a combination of a fresh issue and an offer for sale. The fresh issue will amount to up to ₹15,000 million ($165 million) through the issuance of new equity shares, while the offer for sale will include shares aggregating up to ₹35,000 million ($385 million) from the company’s promoters, including the Menon Family Holdings Trust. The equity shares have a face value of ₹5 ($0.055) per share and are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
The IPO is being conducted in accordance with Regulation 6(1) of the Securities and Exchange Board of India (SEBI) Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018. The proceeds from the fresh issue will be utilised to fund corporate expansion initiatives, including working capital requirements, capital expenditure, debt repayment, and other general corporate purposes, Dorf-Ketal Chemicals said in a release.
The IPO will fund corporate expansion and debt repayment, with shares listed on BSE and NSE.
The offer is managed by leading financial institutions, with more details to follow.
The company has also indicated that up to ₹3,000 million ($33 million) may be raised through a Pre-IPO Placement before the formal IPO filing. Over the years, Dorf-Ketal has expanded its operations globally with subsidiaries and joint ventures across multiple countries. The DRHP highlights potential risks, including market fluctuations, regulatory changes, and industry-specific challenges.
The IPO pricing, including floor price, cap price, and final offer price, will be determined through the book-building process based on market demand. The IPO will be managed by leading financial institutions, including JM Financial Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, JP Morgan India Private Limited, Morgan Stanley India Company Private Limited, and Motilal Oswal Investment Advisors Limited.
MUFG Intime India Private Limited will act as the registrar for the IPO. The bid and offer period for the IPO will be announced soon. More details, including the price band and lot size, will be disclosed in the final Red Herring Prospectus.
Fibre2Fashion News Desk (AJ+HU)