NEW DELHI, Jan 25: Speciality chemicals firm Dorf-Ketal Chemicals India Ltd has submitted preliminary documents to the markets regulator Sebi, seeking approval to raise Rs 5,000 crore via an initial public offering (IPO).
The IPO will include a fresh issue of equity shares worth up to Rs 1,500 crore, alongside an offer for sale of shares valued at Rs 3,500 crore by the promoter Menon Family Holdings Trust, as detailed in the draft red herring prospectus (DRHP) submitted on Friday.
Funds from the fresh issue amounting to Rs 82.90 crore will be allocated for repaying company debt, while Rs 33.30 crore will be invested in the subsidiary Dorf Ketal Chemicals FZE to settle or prepay its outstanding loans. The remainder will be utilized for general corporate purposes.
Established in 1992, Dorf-Ketal Chemicals specializes in R&D and innovation as a global manufacturer and supplier of specialty chemicals serving various sectors, including hydrocarbons, oil and gas, refining, and petrochemicals.
As of October 31, 2024, the company’s clientele featured notable names like Reliance Industries, Petronas, Indian Oil Corporation, PPG Industries, Clariant, Liberty Energy, Italiana Petroli, and Vedanta, with a total of 1,322 customers during the six months ending September 2024.
The firm operates 16 manufacturing facilities across four countries, including eight in India, two in Brazil, three in the United States, and three in Canada as of October 2024.
With 542 patent registrations outside India, including 99 in the US, along with 29 registrations in India, the company stands out as one of the few Indian chemical firms with a strong global brand presence.
Dorf-Ketal has successfully acquired and integrated multiple businesses to broaden its offerings and market reach. Recent acquisitions include Texas-based Impact Fluid Solutions LP in June 2024, Fluid Energy Group’s global modified and synthetic acid business in January 2023, Clariant’s North American land oil business in March 2023, and Khyati Chemicals Private Limited in April 2022.
From FY22 to FY24, the company’s profit after tax increased at a compound annual growth rate (CAGR) of 50.18% to Rs 60.20 crore, while revenue from operations expanded at a CAGR of 45.47% to Rs 548 crore.
The book-running lead managers for the issue include JM Financial Ltd, Citigroup Global Markets India Private Ltd, HSBC Securities and Capital Markets (India) Private Ltd, J.P. Morgan India, Morgan Stanley India Company, and Motilal Oswal Investment Advisors Ltd. (PTI)
