Upcoming IPO: Dorf-Ketal Chemicals files IPO draft papers with Sebi for ₹5,000 crore IPO

Specialty chemicals manufacturer Dorf-Ketal Chemicals India Ltd has submitted preliminary documents to the Securities and Exchange Board of India (SEBI) to seek approval for raising ₹5,000 crore via an initial public offering (IPO).

The IPO will include a fresh issuance of equity shares worth ₹1,500 crore and an offer for sale (OFS) of ₹3,500 crore by the promoter, Menon Family Holdings Trust, as detailed in the draft red herring prospectus (DRHP) filed on Friday.

From the fresh issuance proceeds, ₹82.90 crore will be allocated for debt repayment, ₹33.30 crore will be used to repay or prepay borrowings of its subsidiary Dorf Ketal Chemicals FZE, and the remainder will fund general corporate purposes.

Established in 1992, Dorf-Ketal Chemicals is a globally recognized R&D-driven manufacturer and supplier of specialty chemicals catering to industries such as oil and gas, refining, petrochemicals, and other industrial segments.

As of October 31, 2024, its client base included Reliance Industries, Petronas, Indian Oil Corporation, PPG Industries, Clariant, Liberty Energy, Italiana Petroli, and Vedanta, with 1,322 customers recorded during the six months ending September 2024.

The company operates 16 manufacturing facilities across four countries—eight in India, two in Brazil, three in the US, and three in Canada—as of October 2024. Dorf-Ketal holds 542 patents globally, including 99 in the US and 29 in India, establishing itself as one of the few Indian chemical firms with international brand recognition.

Known for its strategic acquisitions, the company has expanded its offerings and geographic reach. Recent acquisitions include Texas-based Impact Fluid Solutions LP in June 2024, Canada’s 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.

Between FY22 and FY24, Dorf-Ketal's profit after tax grew at a compound annual growth rate (CAGR) of 50.18%, reaching ₹60.20 crore, while its revenue rose at a CAGR of 45.47%, totaling ₹548 crore.

JM Financial Ltd, Citigroup Global Markets India Pvt Ltd, HSBC Securities and Capital Markets (India) Pvt Ltd, J.P. Morgan India, Morgan Stanley India, and Motilal Oswal Investment Advisors Ltd are serving as the book-running lead managers for the issue.