Dorf Ketal Chemicals files DRHP with SEBI for IPO

04 February 2025
3 min read
Dorf Ketal Chemicals files DRHP with SEBI for IPO
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Dorf Ketal Chemicals is planning an Initial Public Offering (IPO) to raise approximately ₹5,000 crore. The IPO includes a fresh issue of shares worth ₹1,500 crore and an offer for sale (OFS) of ₹3,500 crore. The company has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). The shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

IPO Structure and Objectives

The fresh issue of shares aims to raise ₹1,500 crore. The offer for sale (OFS) involves the sale of shares by the promoter Menon Family Holdings Trust for up to ₹3,500 crore. The company plans to use the proceeds from the fresh issue for debt repayment, including ₹829 crore for its own debt and ₹333 crore for its subsidiary, Dorf Ketal Chemicals FZE, as well as for general corporate purposes. A pre-IPO placement may raise up to ₹300 crore by anchor investors, which would reduce the size of the fresh issue.

Company Profile

Dorf Ketal Chemicals, founded in 1992, is a leading global supplier of specialty chemicals. It focuses on research and development and provides products to industries including oil and gas, refining, petrochemicals, and other industrial sectors. The company is known for its advanced technology and its ability to provide creative solutions and customized services. Dorf Ketal has 16 manufacturing facilities across four countries, including eight in India, two in Brazil, three in the US, and three in Canada. As of October 2024, Dorf Ketal held 542 patents globally, including 99 in the US and 29 in India.

Financial Performance

From fiscal year 2022 to 2024, Dorf Ketal's revenue grew at a compound annual growth rate (CAGR) of 45.47%, reaching ₹5,559.60 crore. The company's profit after tax also saw a significant increase, growing at a CAGR of 50.18% to ₹601.97 crore. In the six months ending September 2024, the company reported a profit after tax of ₹231.64 crore. The company's Earnings Per Share (EPS) is ₹11.56, with a Return on Net Worth (RoNW) of 23.53% and a Net Asset Value (NAV) of ₹49.14.

Client Base and Market Position

Dorf Ketal has a diverse customer base, including Reliance Industries, Petronas, Indian Oil Corporation, PPG Industries, Clariant, Liberty Energy, Italiana Petroli, and Vedanta. During the six months ending September 2024, the company served 1,322 customers. In 2023, Dorf Ketal ranked first by revenue market share in India and Brazil in oil fields, refinery chemicals, petrochemicals and fuel additives. It also ranked first globally in modified acids, organometallic titanates and zirconates, and PVF and among the top five globally in fuel additives.

IPO Management and Details

The IPO is managed by leading financial institutions, including JM Financial Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited, Morgan Stanley India Company Private Limited, and Motilal Oswal Investment Advisors Limited. MUFG Intime India Private Limited will serve as the registrar for the IPO. The retail quota for the IPO will be not less than 35%, while the Qualified Institutional Buyers (QIB) quota will gbe not more than 50% and the High Networth Individuals (HNI) quota will be not less than 15%. The IPO is a 100% book-built offer.

Expansion and Acquisitions

Dorf-Ketal has strategically expanded its operations through acquisitions. Key acquisitions include Impact Fluid Solutions LP (June 2024), Fluid Energy Group's global modified and synthetic acid business (January 2023), Clariant's North American land oil business (March 2023), and Khyati Chemicals Private Limited (April 2022).

Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.

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