Prasol Chemicals IPO Review: 84% OFS, 48x FY26

Key takeaways

• The book is ₹500 crore: ₹80 crore fresh (₹60 crore to repay debt), ₹420 crore OFS — 84% of the issue.
• Revenue from operations rose ₹876.56 crore → ₹1,012.49 crore → ₹1,232.59 crore; PAT ₹18.13 → ₹43.57 → ₹83.12 crore. EBITDA margin 6.91% → 11.30%.
• Operating cash was ₹115.61 crore in FY24 and only ₹49.47 crore in FY26 — profit grew faster than cash.
• At ₹676, post-issue mcap is about ₹4,001 crore, or 48.1x FY26 and 91.9x FY25.
• Named peers on 3 Sep 2026: Excel Industries 18.2x, Vinati Organics 27.3x, Aarti Industries 34.8x. An unofficial GMP of ₹55 (~8%) has been quoted — unofficial, unregulated, often wrong.

The deal in one paragraph

Prasol is a 1992 speciality-chemicals manufacturer with 150-plus acetone and phosphorus products and an export book. Coverage calls it India’s only isophorone maker. The three-year margin expansion is in the abridged prospectus, not in a broker’s adjective. The offer still asks 48 times that year, after a year when cash from operations was less than half of FY24, and 84% of the ₹500 crore is a sale by existing holders. Niche is not a multiple. The checklist is below.

Data

Issue structure

Item	Figure	Units
Total issue	500	₹ cr
Fresh issue	80	₹ cr
OFS	420	₹ cr
Price band	643–676	₹ / share
Lot	22	shares (₹14,872 at the cap)
Pre / post shares	5.80 / 5.92	cr
Debt repayment from fresh	60	₹ cr
Listing (tentative)	16 Sep 2026	NSE + BSE

Source: Paytm Money; CNBC-TV18. Tickers named above are listed peers used for comparison, not recommendations.

Financials (restated, ₹ cr)

	FY24	FY25	FY26
Revenue from operations	876.56	1,012.49	1,232.59
Operating EBITDA	60.53	87.77	139.32
EBITDA margin	6.91%	8.67%	11.30%
PAT	18.13	43.57	83.12
PAT margin	2.07%	4.30%	6.74%
Operating cash flow	115.61	22.26	49.47
Borrowings	82.07	101.05	110.06
EPS (₹)	3.13	7.51	14.33
NAV (₹)	56.18	63.35	77.33

Units: ₹ crore except per-share figures and margins. Source: SEBI abridged prospectus. IPO Watch flags commitments of ₹99.11 crore and contingent liability ₹10.02 crore as of 31 Mar 2026.

Valuation at the upper band

Metric	At ₹676
Post-issue mcap (derived)	~₹4,001 cr
P/E FY26	48.1x
P/E FY25	91.9x
P/B on NAV ₹77.33	8.74x
Aarti Industries P/E (3 Sep)	34.8x
Vinati Organics P/E	27.3x
Atul P/E	24.0x
Excel Industries P/E	18.2x

Units: rupees crore and times. Source: IPO Watch peer table dated 3 Sep 2026; mcap derived from Paytm Money post-issue share count × ₹676.

Subscription and unofficial GMP

CNBC-TV18 quoted an unofficial GMP of ₹55 versus ₹676 on 8 Sep (~8%). Early Day-1 subscription prints were around 0.14x. Grey-market premiums are informal and often wrong; I do not treat them as a listing forecast.

Risks

• 84% OFS. ₹80 crore in, ₹420 crore out.
• 48x on the year margins doubled; 92x on the year before.
• Cash lagged profit. FY26 OCF is below FY24.
• Plant-shutdown risk on a manufacturing book (broker notes via CNBC-TV18).
• Acetone / phosphorus input cycle.
• Commitments near ₹99 crore against an ₹80 crore fresh issue.

What to watch

Five checks. At ₹676 this issue clears 1 of 5 (business). Numbers are partial. Price and OFS do not clear.

What would change my mind: two quarters holding EBITDA margin at or above 11% with operating cash at least matching PAT — or a live print nearer Vinati / Aarti on FY26. Allotment 11 Sep; listing tentatively 16 Sep 2026.

A companion video is planned; numbers will come only from this article and docs/ipo_analysis/prasol_chemicals.md.

Sources

1. SEBI abridged prospectus — restated P&L, cash flow, KPIs — accessed 8 Sep 2026.
2. Paytm Money — issue size, lot, objects — accessed 8 Sep 2026.
3. IPO Watch — 48.11x / 91.85x and peer P/Es on 3 Sep 2026 — accessed 8 Sep 2026.
4. CNBC-TV18 — unofficial GMP and ₹60 crore debt repayment — accessed 8 Sep 2026.

Disclaimer

AlphaResearch is not a SEBI-registered investment adviser or research analyst. This article is educational analysis based on publicly available information and is not investment advice or a recommendation to buy, sell, hold, subscribe to or avoid any security. Figures are taken from the sources listed above and may contain errors; verify them in the original filings. Investing in securities involves risk, including loss of principal. Consult a SEBI-registered adviser before making investment decisions.

Position disclosure: none. AARTIIND, ATUL and VINATIORGA appear only as listed-peer comparables.