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In a move that underscores the rising investor appetite for India’s specialty chemicals sector, Safex Chemicals (India) Limited has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi), laying the groundwork for an initial public offering aimed at raising Rs 450 crore through a fresh issue of shares. The IPO will also feature an offer-for-sale component of up to 35.73 million equity shares from promoters and existing investors.

The IPO structure follows the conventional book-building route, with allocations carved out for various investor segments—up to 50 per cent for qualified institutional buyers, 15 per cent for non-institutional bidders, and 35 per cent reserved for retail investors. An employee reservation component has also been included, signaling the company’s intent to bring internal stakeholders into the shareholder fold. Notably, the company has kept the door open for a pre-IPO placement worth Rs 90 crore, which if executed, will proportionally reduce the size of the fresh issue. However, such a placement will be capped at 20 per cent of the total fresh issue value.

At the core of the capital raise is a dual-pronged objective: strengthening the balance sheet and fueling future growth. Approximately Rs 255.59 crore from the net proceeds will be earmarked for debt reduction at the parent level, while another Rs 110 crore is planned for the repayment of loans availed by its subsidiary, Shogun Organics. The remainder will be channelled toward general corporate purposes, reflecting a prudent capital allocation strategy that blends deleveraging with strategic flexibility.

The IPO filing comes on the back of robust financial performance. Safex Chemicals reported a 12.83 per cent jump in revenue from operations, climbing from Rs 1,404.59 crore in FY24 to Rs 1,584.78 crore in FY25. The growth was largely driven by increased demand in its branded formulations and specialty chemicals verticals—both high-margin, value-added segments that align with global trends favoring agrochemical efficiency and sustainability.

Axis Capital, JM Financial, and SBI Capital Markets have been appointed as the book-running lead managers to the issue, while KFin Technologies will serve as the registrar. The company’s equity shares are proposed to be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), opening the doors for broader investor participation in India’s chemicals growth story.

Safex’s move to tap the public markets comes at a time when India’s specialty chemicals sector is experiencing structural tailwinds—from China+1 sourcing shifts and rising domestic consumption to policy-level encouragement for import substitution and agro-input innovation. If investor interest aligns with these macro cues, Safex Chemicals could well be the next in a growing line of industrial success stories to find favour on Dalal Street.