Dorf Ketal Chemicals Files for ₹5,000 Crore IPO with SEBI

Dorf-Ketal Chemicals India, a leading specialty chemicals manufacturer, is preparing to enter the capital markets with an initial public offering (IPO) aimed at raising ₹5,000 crore. The company has submitted its preliminary documents to the Securities and Exchange Board of India (SEBI).

The IPO will include a fresh equity issuance worth ₹1,500 crore and an offer-for-sale (OFS) of shares valued at ₹3,500 crore by the promoter, Menon Family Holdings Trust. Additionally, the company may explore a pre-IPO fundraising round of ₹300 crore. If successful, the fresh issue size will be reduced accordingly.

Dorf-Ketal Chemicals plans to allocate ₹1,162 crore from the fresh issue proceeds to repay debt, including liabilities of its subsidiary, Dorf Ketal Chemicals FZE. The remaining funds will be used for general corporate purposes. As of October 2024, the company’s total outstanding debt stood at ₹3,540.8 crore on a consolidated basis.

Founded in 1992, the company operates 16 manufacturing facilities across four countries, including eight in India. It offers products in two key segments: specialty chemicals for hydrocarbons and industrial specialty chemicals, contributing 81% and 19% of its total revenue, respectively, in the last fiscal year and the first half of FY25.

Dorf-Ketal Chemicals supplies its products to prominent players in the hydrocarbons and industrial sectors, such as Reliance Industries, Petronas, Indian Oil Corporation, PPG Industries, Clariant, Liberty Energy, Italiana Petroli, and Vedanta. By September 2024, its customer base had grown to 1,322.

The Mumbai-based company has demonstrated strong financial growth, with a 33.4% increase in profit to ₹602 crore and a 41.7% rise in revenue to ₹5,479.5 crore in FY24 compared to the previous year. In the first half of FY25, it reported a profit of ₹231.6 crore on revenue of ₹2,961.4 crore.

To manage the IPO, Dorf-Ketal Chemicals has appointed six merchant bankers: JM Financial, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JP Morgan India, Morgan Stanley India Company, and Motilal Oswal Investment Advisors.