Gujarat Polysol Chemicals Limited (GPCL) has filed its draft red herring prospectus (DRHP) with capital markets regulator SEBI to launch its IPO
Gujarat Polysol Chemicals Limited (GPCL) has filed its draft red herring prospectus (DRHP) with capital markets regulator SEBI to launch its IPO. The company plans to raise Rs 414 crore through initial public offering. The issue comprises fresh issue of equity shares aggregating up to Rs 87 crore and offer for sale (OFS) of equity shares aggregating up to Rs 327 crore by the selling shareholders. The company has proposed to utilise the net proceeds towards funding repayment or pre-payment, in full or in part, of all or certain borrowings availed by the company and general corporate purpose.
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The book running lead manager to the issue is INGA Ventures Pvt Ltd, and Link Intime Private Ltd is the registrar to the Gujarat Polysol Chemicals issue. The equity shares are proposed to be listed on BSE and NSE. Upon successful listing, the company will join the likes of Himadri Speciality Chemicals, and BASF India. The average industry P/E stood at 26.53. For the six month period ended 30 September 2021, the company reported a PAT of Rs 15.52 crore and a revenue of Rs 181.85 crore.
The Gujarat-based firm is among the leading suppliers of dispersing agents in infra-tech, dye and pigments and textile and leather industries. For the financial year ended March 2021, the company reported a profit after tax of Rs 40 crore, while the total income stood at Rs 440 crore. Its restated profit for the FY 2019-21 grew at a CAGR of 76.42 per cent.
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Gujarat Polysol Chemicals, in its DRHP, said that the revival in consumption, meanwhile, will be driven by discretionary as well as non-discretionary spending. The non-discretionary spending refers to groceries and other essential items. Expectedly, this category remained largely unscathed during the lockdown. The recovery in 2021 is expected to be in double digit following a better start to the year as compared to 2020. Near-term prospects are favourable but the second covid wave is a risk to recovery. Rapid industrialisation in India and China is expected to drive demand for specialty chemicals.
