Safecure Services Ltd. IPO

With reference to the intimation submitted by the Company dated September 02, 2026. (‘earlier intimation’) regarding the Notice of the Fourteenth Annual General Meeting (‘AGM’) of the company, Safecure Services has informed that due to an inadvertent clerical error, the date of the AGM was incorrectly mentioned as Friday, September 29, 2026, in the said communication. The correct date of the Fourteenth Annual General Meeting of the Company is Friday, September 25, 2026, at 11:00 AM (IST) at the registered office of the Company situated at Office No. 5, Fifth Floor, Bldg No. 6, Old S. No. 9, 12, 14 (PT), New S. No. 62, 66, 69, Opp. Pleasant Park, Mira Bhayander Road, Behind Jhankar-6, Mira Road (E), Mira Road, Thane, Vasai, Maharashtra, India -401107. The aforesaid error was purely inadvertent and clerical in nature. The Company is therefore submitting this intimation to bring the correct date of the AGM to the notice of the Stock Exchange and to place the same on record. The company has informed that the Notice of the AGM as attached with the earlier intimation and which was uploaded on the Company’s website as well contains the correct particulars with respect to the date, time and place of the ensuing AGM of the Company. The same is attached for further reference. The Annual Report of the Company for the Financial Year 2025-26 is available on the website of the Company at https://safecure.in/investors.html.

The above information is a part of company’s filings submitted to BSE.

Nifty September 2026 futures closed at 23866.10 (LTP) on Monday, at a premium of 86.95 points over spot closing of 23779.15, while Nifty October 2026 futures ended at 23971.00 (LTP), at a premium of 191.85 points over spot closing. Nifty September futures saw an addition of 12,715 units, taking the total open interest (Contracts) to 2,71,399 units. The near month derivatives contract will expire on September 29, 2026. (Provisional)

From the most active contracts, HDFC Bank September 2026 futures traded at a premium of 2.75 points at 713.25 (LTP) compared with spot closing of 710.50. The numbers of contracts traded were 17,035. (Provisional)

Infosys September 2026 futures traded at a premium of 6.30 points at 1093.80 (LTP) compared with spot closing of 1087.50. The numbers of contracts traded were 16,261. (Provisional)

Reliance Industries September 2026 futures traded at a premium of 4.20 points at 1313.70 (LTP) compared with spot closing of 1309.50. The numbers of contracts traded were 15,758. (Provisional)

Swiggy September 2026 futures traded at a premium of 1.95 points at 278.40 (LTP) compared with spot closing of 276.45. The numbers of contracts traded were 12,422. (Provisional)

BSE September 2026 futures traded at a premium of 12.80 points at 3459.00 (LTP) compared with spot closing of 3446.20. The numbers of contracts traded were 10,911. (Provisional)

LCC Projects

• LCC Projects is coming out with a 100% book building; initial public offering (IPO) of 3,01,46,151 shares of face value Rs 5 each in a price band Rs 139-146 per equity share. 
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 09, 2026 and will close on September 11, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 5 and is priced 27.80 times of its face value on the lower side and 29.20 times on the higher side.
• Book running lead manager to the issue is Motilal Oswal Investment Advisors.
• Compliance officer for the issue is Gayatri Desai. 

Profile of the company

LCC Projects is a multidisciplinary engineering, procurement and construction (EPC) company in the irrigation and water supply projects segment from Gujarat. The company is a multidisciplinary large corporate EPC company from Gujarat, poised to undertake infrastructure projects across 12 states in India. Over a period of two decades (including projects undertaken through the partnership firm prior to conversion to the company), it has executed a wide range of projects in the irrigation and water supply segment such as construction of dams, barrages, weirs, hydraulic structures, canals, pipe distribution networks, lift irrigation works, water supply schemes, and other EPC projects. Additionally, it has executed a project related to the construction of metro rail project including construction of station along with its approaches and viaducts and are in the process of executing a mining development and operations (MDO) project.

Further, it has established a manufacturing unit, strategically located in Jaspur, Gujarat, for the production of precast concrete solutions for the infrastructure and construction industries. This unit has been set up to manufacture precast concrete elements, which are cast and cured in a controlled factory environment before being transported to construction sites for installation.

The company has experience of executing projects across diverse geographic locations in India. For instance, it has diversified its geographical presence in the construction and development and execution of projects in various states of India, such as Madhya Pradesh, Gujarat, Odisha, Maharashtra, Chhattisgarh, Jharkhand, Uttar Pradesh, Haryana, Himachal Pradesh, Rajasthan, Andhra Pradesh, and Karnataka. It has undertaken projects with different levels of complexities in relation to project execution such as managing water flow dynamics, ensuring structural stability, mitigating geographical challenges like uneven terrain and soil conditions, construction in hilly terrain slope protection and rock fall protection due to high rainfall.

Proceed is being used for: 

• Purchasing equipment
• Prepayment and/or repayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company
• General corporate purposes

Industry overview

Agriculture and allied activities form an integral part of the Indian economy and currently, around 18% of India’s Gross Value Added (GVA) is contributed by this sector. India, possessing around 4% of the world’s water resources supports a population of 1.4 billion. Limited water resources for agricultural activities, coupled with erratic monsoons and change in weather patterns, intensifies the need for efficient irrigation practices so as to ensure reduction of water stress in the country. Furthermore, this has resulted in irrigation systems becoming critical in maximizing agricultural output and ensuring food security for the nation. The disparity between availability of water and the actual demand for it necessitates innovation and sustainable management practices in the agricultural sector.

The agricultural sector of India employs an estimated around 45% of India’s workforce and comprises an estimated around 15% of India’s GVA, making itself pivotal to the economy. However, traditional farming methods often yield less efficiency and productivity. This led the Government of India (GoI) to bring about the fourth agricultural revolution known as Agriculture 4.0. This initiative aims to improve yield quality and precision, while minimizing environmental damage, leading to more efficient and sustainable farming methods. Despite recent global headwinds, the sector has shown resilience and has even been a driving force to boost the economy forward. During the First Five Year Plan, India had 74 major and 143 medium irrigation projects. This number increased significantly with the government taking up 406 major, 1135 medium and 259 ERM schemes during FY1951 to FY2012 (end of XI Plan). 231 major, 880 medium and 122 ERM projects have been recorded as completed by end of XI Plan.

The irrigation sector forms the backbone of India’s agricultural landscape, playing a crucial role in ensuring food security, improving climate resilience, and stabilising farm incomes. Strengthening this sector through the development of robust infrastructure, modernisation of irrigation systems, and the promotion of sustainable water management is essential to enhance productivity. To achieve this, the Government of India has introduced several targeted programmes and schemes that encourage the adoption of water-efficient irrigation practices. The flagship scheme, Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), has been central to this effort by improving irrigation coverage, promoting innovative techniques, and providing financial support for sustainable practices. Within this framework, the Per Drop More Crop (PDMC) initiative, which has been implemented under the Rashtriya Krishi Vikas Yojana (RKVY) since 2022–23, focuses on strengthening and incentivising micro-irrigation projects. Together, these initiatives aim to expand cultivable areas with reliable water access, enhance water use efficiency, and modernise irrigation methods, ultimately making farming more sustainable and resilient. 

Pros and strengths 

Multidisciplinary EPC company in India for irrigation and water supply projects: The company is a multidisciplinary EPC company in India. It focuses on complex projects and has a strong track record in successful project management, execution and timely completion of irrigation and water supply projects across India, with a majority of its projects being executed ahead of or on schedule.  As of March 31, 2026, the company has a track record of completing 80 projects for various Government departments and other customers. Its track record showcases its ability to capitalize on its design and engineering capabilities, execution expertise, and effective internal systems. Its skilled workforce, supported by an execution-driven culture, is as an integral factor of its success. Further, its ability to leverage its experience in executing projects across India provides it with a significant advantage in project execution and timely delivery. By consistently demonstrating its ability to handle large-scale projects and leveraging its project management and execution capabilities, it is well-positioned to pursue new opportunities across geographies.

Strong order book and diversified project portfolio: In the industry in which it operates, an Order Book holds significant importance as it represents the estimated contract value of the unexecuted portion of a company’s existing projects and provides visibility on possible future revenues. Its order book has grown from Rs 62,689.68 million as of March 31, 2024, and to Rs 78,821.71 million as of March 31, 2025 to Rs 79,531.81 million as of March 31, 2026. Its order book is diversified across business verticals. Albeit irrigation and water supply projects form the largest part of its Order Book, it has different components which ensure that its Order Book continues to remain diversified. In an industry which requires significant working capital management, managing large equipment and materials along with manpower resources, it is vital for it to be selective and careful while expanding its business. The consistent growth in its Order Book is a result of its extensive experience, its commitment to maintaining quality standards and its project execution skills. The growth in its Order Book has also contributed to its strong financial performance. Further, its financial strength also enables it to access additional bank financing, which in turn, will enable it to bid for additional projects which will help it builds a strong order book.

In-house project designing capabilities with robust technical knowledge: It has qualified in-house teams who are responsible for different aspects of its projects starting from identifying prospective projects to the operation and maintenance of the projects. It is able to undertake a significant number of activities related to the projects in-house, thereby ensuring timely completion of its projects, reducing its reliance on third parties and decreasing its costs. Its integrated structure also allows it to control its budget and maximize returns for the project, including the operation and maintenance margins. The company has an in-house design and engineering team comprising 698 qualified engineers and technical personnel as on July 31, 2026. The average work experience of its design team members is over five years. The company is also focused on ensuring that each project is executed in conformity with the work description provided in the contracts and adheres to the quality and standard of construction associated with the company.

Strong risk management, project selection and dispute resolution processes: It recognizes the inherent risks prevalent in the infrastructure sector and have set up a risk management system that assists in identifying, measuring and monitoring the various risks that may arise in its operations. Its project selection process focusses on finding and winning projects in which it expects to have steady cash flows through periodic payments, which it expects will allow it to stay cash flow positive throughout the project lifecycle. It has a team of experienced Senior Management within the company that is responsible for analysing and evaluating all proposed new bids and investments. Their assessment includes a review of various aspects, including credit risk, market risk, and operational risk associated with such bids or capital expenditures. its risk management processes span the entire project lifecycle. At the pre-tendering stage, the risks that it evaluates include customers risk, project risk and joint venture risk. The teams involved in analysing these risks include business development executives, the tendering team and the strategy team. At the tendering stage, detailed analysis is done towards scope of work, construction method, estimates of construction materials and equipment. age, detailed analysis is done towards scope of work, construction method, estimates of construction materials and equipment. This analysis is prepared by the techno commercial team along with the risk management team and shared with the business unit head along with a risk pricing plan and a risk mitigation plan.

Risks and concerns

Significant dependence on top ten customers, primarily state and central government departments: The company derives a significant portion of its revenue from operations from its top ten customers which are primarily state and central government departments and thus it is majorly dependent on these state and central government departments. Revenue from its top ten customers comprise a significant portion of its revenue from operations i.e. 72.30% for Fiscal 2026, 84.10% for the Fiscal 2025, and 82.76% for the Fiscal 2024. Any failure to maintain its relationship with these customers, any adverse changes affecting their financial condition or the loss of any of its customers will have an adverse effect on its business, results of operations, financial condition and cash flows.

Geographical concentration in Gujarat and Madhya Pradesh: Its operations are geographically concentrated in the states of Gujarat and Madhya Pradesh. Its revenue from operations from Gujarat accounted for 39.64%, 35.52% and 10.97% in Fiscals 2026, 2025 and 2024, respectively. Its revenue from operations from Madhya Pradesh accounted for 36.58%, 45.41% and 66.03% in Fiscals 2026, 2025 and 2024, respectively. This concentration of its projects in the states of Gujarat and Madhya Pradesh heightens its exposure to adverse developments related to regulatory, political, as well as economic, demographic and other changes in the respective states of as well as the occurrence of natural and man-made disasters, which may adversely affect business, results of operations and financial condition in the respective states.

High dependence on Jal Jeevan Mission for order book: A significant portion of its order book is derived from Jal Jeevan Mission projects. For Fiscal 2026, projects under the Jal Jeevan Mission constituted 19.54% of its total Order Book, amounting to Rs 15,550.07 million. Further, for Fiscals 2025, and 2024, projects awarded under the Jal Jeevan Mission constituted Rs 20,411.49 million, and Rs 28,053.98 million of its total order book, amounting to 25.90%, and 44.75% respectively. Any adverse changes in policy, funding, or implementation of this mission could lead to delays, cancellations, or reduced opportunities, which may negatively impact its business, results of operations, and financial condition. Further, its dependency on the Jal Jeevan Mission exposes it to concentration risks both in terms of geography and customer profile. A decline in the scale of the scheme or reduced participation by states could materially impact its revenues, cash flows and overall financial performance.

Dependence on customers for land acquisition and statutory clearances: Its infrastructure projects, particularly those related to irrigation and water supply, often require significant land acquisition and may impact local communities, which can lead to resistance and opposition. The construction and operation of its projects may face opposition from local communities and special interest groups, which can result in delays or disruptions. Key challenges include delays in the acquisition of private land, securing rights of way, eviction of encroachments, and obtaining environmental clearances, which are typically the responsibility of its customers. A failure by its customers to acquire the necessary land free of encumbrances and on time can cause significant project delays, cost overruns, or even force it to alter or abandon projects altogether. Any significant delays in the completion of its projects on account of the aforementioned factors could lead to the termination of its contracts, cost overruns, or claims for damages, which could have an adverse effect on its cash flows, business, results of operations, and financial condition. Furthermore, these issues can lead to disputes and crossclaims for liquidated damages between it and its customers.

Outlook

LCC Projects is engaged in the business of designing, construction, and operation and maintenance of roads and highways, bridges, irrigation and mining projects, construction of commercial buildings, and other ancillary services like toll collection, operation and maintenance of highways. This includes Water and Wastewater Treatment Plants (WWTPs). WWTPs include Sewage Treatment Plants (STPs), Common Effluent Treatment Plants (CETPs), along with Sewerage Networks, Water Treatment Plants (WTPs) and Water Supply Scheme Projects (WSSPs). On the concern side, its business significantly depends on its ability to successfully bid for and acquire projects in the irrigation and water supply projects segment. In the Fiscals 2026, 2025, and 2024, its bid success rate was 13.53%, 21.35%, and 22.89%, respectively. Its inability to successfully bid for and acquire new projects in the irrigation and water supply projects segment could have an adverse effect on the growth of its business.

The issue has been offering 3,01,46,151 shares in a price band of Rs 139-146 per equity share. The aggregate size of the offer is around Rs 419.03 crore to Rs 440.13 crore based on lower and upper price band respectively. Minimum application is to be made for 102 shares and in multiples thereof thereafter. On performance front, its total income increased by 23.75% to Rs 36,394.54 million for Fiscal 2026 from Rs 29,410.13 million for Fiscal 2025. Its profit after tax increased by 28.09% to Rs 2,864.41 million for Fiscal 2026 from Rs 2,236.25 million for Fiscal 2025.

Meanwhile, it intends to further develop its long-standing customer relationships by continuing its focus on quality in delivery and execution. Through client interaction, real-time reporting implemented under its stakeholder communication system, its project management teams closely monitor client satisfaction and are responsive to their evolving needs. The company possesses a track record of timely project completion through competent and experienced project management teams and active promoter engagement. In line with the same, completing its customers’ projects in a timely manner whilst upholding the high standards of quality, is the most effective manner in which it can develop and maintain strong relationships with its customers.

Prasol Chemicals 

• Prasol Chemicals is coming out with a 100% book building; initial public offering (IPO) of 77,76,039 shares of face value Rs 2 each in a price band Rs 643-676 per equity share.  
• Not more than 50% of the issue will be allocated to Qualified Institutional Buyers (QIBs), including 5% to the mutual funds. Further, not less than 15% of the issue will be available for the non-institutional bidders and the remaining 35% for the retail investors.
• The issue will open for subscription on September 08, 2026 and will close on September 10, 2026.
• The shares will be listed on BSE as well as NSE.
• The face value of the share is Rs 2 and is priced 321.50 times of its face value on the lower side and 338.00 times on the higher side. 
• Book running lead manager to the issue is DAM Capital Advisors.
• Compliance officer for the issue is Kiran Rajendra Agrawal.

Profile of the company 

The company was incorporated in 1992 and with over 33 years of experience in the specialty chemicals industry, it is a forward integrated manufacturer of acetone and phosphorous based specialty chemicals and other specialty chemicals involving complex and differentiated chemistries. It is a highly diversified specialty chemical player with over 150 specialty chemical products and over 1,600 customers and exports to 69 countries, as of July 15, 2026. Its products find diversified applications across numerous industries with 5 key segments being: (a) performance chemicals (including lubricant additives and mining chemicals); (b) PICA viz., paints, inks construction, & adhesives; (c) pharmaceuticals; (d) agrochemicals; and (e) home and personal care (Application Industries). 

The company is a 3 Star Export House company as certified by the Government of India certified with a robust global distribution network spread across 63 countries in Asia-Pacific (APAC), North America, South America and Europe as on June 30, 2026. It operates 2 manufacturing facilities located in Khopoli, Maharashtra, (Khopoli Manufacturing Facility) started in 1995 spanning a total area of 120,604.00 square metres and Mahad, Maharashtra (Mahad Manufacturing Facility started in 2020 spanning a total areas of 119,423.00 square meters and along with its Khopoli Manufacturing Facility - the Manufacturing Facilities) with an aggregate installed capacity of 98,644 metric tonnes per annum. Each of its Manufacturing Facilities has obtained ISO 9001:2015, ISO 45001:2018 and ISO 14001:2015 certifications. Additionally, it has a facility located in Dheku, Khopoli, Maharashtra which is similarly certified and is currently used for repacking, storage and dispatch, which can be re-purposed for carrying out manufacturing activities.

Proceed is being used for: 

• Repayment and/ or pre-payment, in full or part, of certain borrowings availed by the company.
• General corporate purposes.

Industry overview 

The specialty chemicals segment stands out as one of the fastest-growing areas in Indian manufacturing, driven by rising demand from various end-user sectors, supportive government policies, an expanding domestic customer base, and shifts in consumer lifestyles. The Indian specialty chemicals market has demonstrated robust growth, expanding from Rs 2,240 billion in FY19 to Rs 5,563 billion in FY26, and is projected to reach Rs 7,541 billion by FY29, registering a CAGR of 10-12% over the next four years. This sustained upward trajectory is driven by a strong domestic demand base, rising exports, and increasing import substitution across various segments like agrochemicals, active pharmaceutical ingredients (APIs), dyes, and polymer additives. The sector benefits from India's cost-competitive manufacturing capabilities, a large skilled workforce, and tightening environmental regulations in China prompting global supply chain diversification. Additionally, the ‘China+1’ strategy adopted by multinational corporations has further positioned India as a preferred destination for sourcing specialty chemicals, particularly in high-margin, value-added segments. With rising investments in R&D, backward integration, and capacity expansion by Indian players, the sector is poised to play a pivotal role in transforming India into a global specialty chemicals hub.

India's chemical industry holds a prominent position globally, ranking 6th in production and 14th in exports. Specialty chemicals, particularly agrochemicals, dyes, and pigments, represent more than half of India's chemical exports. In recent years, imports in the sector have grown consistently, with petrochemical intermediates making up over 30% of total imports. The Indian chemicals industry is expected to maintain a relatively stable segmentation mix between 2024 and 2029, though with some marginal shifts. Basic chemicals, which form the foundation of the industry and include bulk products like petrochemicals, inorganic chemicals, and intermediates, will continue to dominate the market, albeit with a slight decline from 56% in CY25 to 54% in CY29. This indicates a gradual diversification of the industry away from commoditized segments. Specialty chemicals, known for their higher value addition and enduse specificity, are projected to grow modestly from 20% in CY24 to 22% in CY25, reflecting increasing demand from industries like automotive, construction, and personal care. Meanwhile, agricultural chemicals, which include fertilizers and crop protection products, are expected to remain stable at 11%, indicating a mature and steady market. Consumer chemicals, comprising products like detergents, cleaning agents, and personal care formulations, are also projected to hold steady at 13% in 2029(P), supported by consistent urban and rural demand. Overall, the industry is moving toward a slightly more value-added profile, with specialty chemicals gaining a larger share.

Pros and strengths

Highly diversified product portfolio used across various Application Industries: The company is a forward integrated manufacturers of acetone and phosphorous based specialty chemicals and other specialty chemicals involving complex and differentiated chemistry and its products find diversified application in a large number of Application Industries. It is a highly diversified specialty chemical player with over 150 specialty chemical products and over 1,600 customers and exports to 69 countries, as of July 15, 2026. The diverse applications of its products across multiple application industries and end uses insulates it from changes in business cycles or disruptions in any one industry. 

Well established R&D capabilities: The company’s specialty chemicals are key raw materials across various Application Industries, and it has continuously diversified its product portfolio to address the changing needs of the customers and applications. The company has a dedicated R&D facility at its Khopoli Manufacturing facility which houses advanced equipment including a fluidized bed reactor (a type of reactor device that can be used to carry out a variety of multiphase chemical reactions), distillation column and centrifuge. Further, both the Manufacturing Facilities house pilot plants where it undertakes synthesis of specialty chemicals in small batches to test, develop and augment the efficacy of its products. Its R&D laboratory is equipped to undertake various chemicals reactions/processes such as aldol condensation, addition (inorganic), hydrogenation, dehydration, acid synthesis (thio compounds), ammonolysis, chlorination, esterification, oxidation (organic), catalytic cracking (gas phase tubular reactor), substitution etc. Its focus on R&D has been one of the key aspects of its growth, and R&D will continue to play a key role in enabling it to successfully garner new customers or higher value contracts with existing customers at an optimal cost.

Long standing relationships with diversified customer base and strong global presence: During Fiscals 2026, 2025 and 2024, the company catered to 1,618, 1,586, and 1,560 customers, respectively. Its diversified customer base assists in reducing its dependence on a single geography or concentrated group of markets, which helps in mitigating the effect of region specific economic and industry cycles. Its long-term association with key customers also offers significant competitive advantages such as revenue visibility, industry goodwill, quality assurance and up-sell and cross-sell its diverse range of products. Besides, the company has appointed sales channel personnel in Shanghai and London, so as to enable it to market its products as well as understand the customer needs in these regions. It has also appointed consignment stockist in Houston, United States of America and Rotterdam, Netherlands to hold its products on consignment basis which will assist it in further penetrating in these markets by servicing smaller customers with just in time deliveries. 

Experienced, qualified and professional leadership team: The company is led by a well-qualified and experienced Board of Directors and key managerial personnel, who have extensive domain knowledge and understanding of the industry and the business environment in which it operates. It has also a succession plan in place with experienced Directors mentoring younger Directors, members of Key Managerial Personnel and members of Senior Management to ensure smooth leadership transition in the future.

Risks and concerns

Business reliant on certain key customers: The company’s top 10 customers contributed 23.68%, 21.96% and 18.46% of its total revenue from operations during Fiscal 2026, Fiscal 2025 and Fiscal 2024, respectively. The company’s business, results from operations, and financial condition are dependent on maintaining relationship with its customers, and failure or inability to retain all or any of its top 10 customers, for any reason (including, due to failure to negotiate acceptable terms, adverse change in the financial condition of such customers for various factors such as possible bankruptcy or liquidation or other financial hardship, merger or decline in sales from such customers, reduced or delayed customer requirements, facility shutdowns, labour strikes, geopolitical reasons and, or, other work stoppages affecting production by such customers) could have a short term material adverse impact on its business, results of operations, financial condition and cash flows.

Operations depend on continuous R&D: The company’s operations are dependent on continuous R&D to develop and commercialise new products. For a company engaged in the manufacture of speciality chemicals, which includes complex chemistries, R&D is a necessary component of business and corporate success and growth. The company’s R&D expenditure declined from Rs 21.58 million constituting 0.24% of its total income in Fiscal 2024 to Rs 19.81 million constituting 0.20% of its total income in Fiscal 2025. In Fiscal 2026, though, its R&D expenditure increased to Rs 33.39 million constituting 0.27% of its total income. The company’s inability to identify and understand evolving industry trends, technological advancements, customer preferences and develop new products to meet its customers’ demands may adversely affect its business. Although the company strives to keep its technology, facilities and machinery current with the latest international standards, the technologies, facilities and machinery it currently employs may become obsolete and it may not have the resources to adequately invest in R&D. The cost of implementing new technologies and upgrading its manufacturing facilities as well as R&D could be significant and could adversely affect its business. 

Volatility in raw material prices: The success of the company’s operations depends on a variety of factors, including its ability to source raw materials at competitive prices.  The major raw materials required by the company for the manufacturing of its products is acetone and yellow phosphorous. The average price of acetone (i) increased by 9.65% from Rs 74.61 per kg in Fiscal 2024 to Rs 81.81 per kg in Fiscal 2025, and (ii) decreased by 26.89% to Rs 59.81 per kg for Fiscal 2026 from Rs 81.81 per kg in Fiscal 2025. Further, the prices of yellow phosphorus (i) decreased by 2.58% from Rs 333.83 per kg in Fiscal 2024 to Rs 325.21 per kg in Fiscal 2025, and (ii) increased by 8.79% to Rs 353.81 per kg for the Fiscal 2026 from Rs 325.21 per kg in Fiscal 2025. Raw material supply and pricing can be volatile due to a number of factors beyond the company’s control, including demand and supply, general economic and political conditions, transportation and labour costs, natural disasters, pandemic, competition and there are inherent uncertainties in estimating such variables, regardless of the methodologies and assumptions that it may use. It typically seeks quotations from multiple suppliers. It also typically does not enter into long-term agreements with its suppliers. It may be required to track the supply demand dynamics and regularly negotiate prices with its suppliers in case of significant fluctuations in raw material prices or foreign currency fluctuations.

Faces foreign exchange risks: A significant portion of the company’s total income and expenditure is denominated in currencies other than Indian Rupees. Although, it closely follows its exposure to foreign currencies by formulating a risk management policy and entering into forward contracts to hedge its exposure in an attempt to reduce the risks of currency fluctuations, its results of operations, cash flows and financial performance could be adversely affected in case these currencies fluctuate significantly. For the Fiscal 2026, Fiscal 2025 and Fiscal 2024, the company incurred a profit / (loss) of Rs (37.55) million, Rs (33.29) million and Rs 63.36 million, respectively, on account of fluctuations in the foreign exchange rate. It may from time to time be required to make provisions for foreign exchange differences in accordance with accounting standards. While it has forex management systems in place and from time-to-time avail forward cover to minimise the foreign exchange related risks, it may experience foreign exchange losses and gains in respect of transactions denominated in foreign currencies.

Outlook

Prasol Chemicals is one of India’s leading specialty chemical manufacturers. The company is known for providing innovative solutions to a diverse range of sectors which include Agrochemicals, Pharmaceuticals, Home & Personal Care, Paints & Coatings/Inks/Construction/Adhesives and Performance Chemicals ranging from Lubricant Additives, Mining Chemicals to Oilfield & Refineries, Construction Chemicals. With strategically located manufacturing plants, research centers, and distribution hubs, it ensures that its customers benefit from localized support, reliable supply chains, and region-specific expertise. The company remains focused on R&D and invests on product development. It has a qualified and experienced R&D team with members comprising of scientists and chemical engineers. On the concern side, the company’s business operations require it to obtain and renew, from time to time, certain approvals, licenses, registrations and permits under central, state and local government rules in India, generally for carrying out its business and for its manufacturing facilities. Besides, its business requires significant amount of working capital primarily as a considerable amount of time passes between purchase raw materials and sale of its finished products and the subsequent collection process from its customers. As a result, it is required to maintain sufficient stock at all times in order to meet manufacturing requirements, thus increasing its storage and working capital requirements. 

The issue has been offering 77,76,039 shares in a price band of Rs 643-676 per equity share. The aggregate size of the offer is around Rs 500 crore to Rs 525.66 crore based on lower and upper price band respectively. Minimum application is to be made for 22 shares and in multiples thereof thereafter. On performance front, the company’s total income increased by 21.89% to Rs 12,378.45 million in Fiscal 2026 from Rs 10,155.40 million in Fiscal 2025. The company’s profit for the year increased by 90.79% to Rs 831.24 million in Fiscal 2026 from Rs 435.69 million in Fiscal 2025.

Meanwhile, to cater for the anticipated increase in demand of the company’s products in various Application Industries, it proposes to debottleneck and expand its manufacturing capacities by increasing the capacity of its existing facilities at Khopoli and Mahad in Maharashtra. The company is also developing a separate application testing laboratory for lubricant additives, construction chemicals and mining chemicals. This laboratory will have specialized equipment which will allow it to test the performance of its products in its customer’s end product and highlight the benefits to its customers using multiple data points. In addition, it intends to continue to leverage its direct marketing and distributor network, diversified product portfolio and its industry standing to establish relationships with new export and local customers and expand its customer base.