Prasol Chemicals IPO lifts equity to Rs 617.399 crore

Prasol Chemicals Limited completed its Rs 500 crore initial public offering in the quarter ended September 30, 2026, raising total equity to Rs 617.399 crore from Rs 448.505 crore at March 31 while non-current borrowings fell from Rs 47.003 crore to nil. The issue included an Rs 80 crore fresh issue and an Rs 420 crore offer for sale.

How was Prasol Chemicals' Rs 500 crore IPO structured?

Prasol Chemicals structured the Rs 500 crore IPO as an Rs 80 crore fresh issue and an Rs 420 crore offer for sale by selling shareholders. The company issued 7,396,437 equity shares of face value Rs 2 each at Rs 676 per share during the September 2026 quarter. Its shares were listed on the National Stock Exchange of India Limited and BSE Limited on September 16, 2026.

The fresh issue comprised 1,183,431 shares allotted on September 11, 2026, while selling shareholders offered 6,213,006 shares. Therefore, the Rs 420 crore offer-for-sale portion was not an addition to Prasol Chemicals' balance sheet. The half-year cash-flow statement recorded Rs 23.7 lakh of share-capital issuance and Rs 79.763 crore of share premium received.

Prasol Chemicals adjusted Rs 2.927 crore of IPO expenses, net of the share attributable to selling shareholders, against its securities premium account. Paid-up share capital rose to Rs 11.837 crore at September 30 from Rs 11.6 crore at March 31. The increase reflects the fresh shares issued, rather than the entire Rs 500 crore public issue.

What changed in Prasol Chemicals' equity and liabilities after listing?

Prasol Chemicals' total equity rose by Rs 168.894 crore to Rs 617.399 crore at September 30, 2026, from Rs 448.505 crore at March 31, 2026. Other equity increased to Rs 605.562 crore from Rs 436.905 crore, while equity share capital increased by Rs 23.7 lakh. The half-year profit after tax was Rs 98.998 crore.

Non-current borrowings were nil at September 30, compared with Rs 47.003 crore six months earlier. Total non-current liabilities declined to Rs 37.445 crore from Rs 83.06 crore, despite deferred tax liabilities increasing to Rs 26.401 crore from Rs 26.002 crore and provisions rising to Rs 10.636 crore from Rs 9.623 crore. Non-current lease liabilities were Rs 40.8 lakh, compared with Rs 43.2 lakh at March 31.

Current borrowings increased to Rs 68.787 crore from Rs 63.061 crore over the same period. Total current liabilities rose to Rs 415.911 crore from Rs 307.71 crore, led by trade payables to creditors other than micro and small enterprises, which increased to Rs 302.522 crore from Rs 204.733 crore. Current tax liabilities rose to Rs 13.99 crore from Rs 30.2 lakh, while other current liabilities fell to Rs 19.542 crore from Rs 30.582 crore.

Why did Prasol Chemicals' cash balance decline after the fresh issue?

Prasol Chemicals' cash and cash equivalents declined by Rs 19.211 crore during the half year to Rs 4.859 crore at September 30, 2026, from Rs 24.07 crore at March 31. The cash-flow statement reported net cash used in operating activities of Rs 11.714 crore and net cash used in investing activities of Rs 36.086 crore for the period.

Working-capital movements were the main operating-cash use. Inventories increased by Rs 147.895 crore and trade receivables and other receivables increased by Rs 73.469 crore, compared with increases of Rs 71.442 crore and Rs 40.898 crore respectively in the half year ended September 30, 2025. A Rs 96.917 crore increase in trade payables partly offset those movements, but cash generated from operations was Rs 8.607 crore before net taxes paid of Rs 20.321 crore.

Net operating cash flow changed from an inflow of Rs 7.208 crore in the September 2025 half year to an outflow of Rs 11.714 crore in the 2026 half year. Purchases of property, plant and equipment increased to Rs 36.322 crore from Rs 16.254 crore. Capital work-in-progress rose to Rs 70.223 crore at September 30 from Rs 47.084 crore at March 31, while property, plant and equipment rose to Rs 314.335 crore from Rs 311.009 crore.

The financing section reports Rs 28.589 crore under net cash used in financing activities, alongside Rs 189.437 crore of borrowing receipts and Rs 193.564 crore of borrowing repayments. It also records Rs 79.763 crore of share premium received, Rs 31.74 lakh of finance costs paid and Rs 6.96 crore of final dividend paid. These line items accompanied the Rs 19.211 crore overall fall in cash and cash equivalents.

How did Prasol Chemicals' half-year earnings compare with the prior period?

Prasol Chemicals reported profit after tax of Rs 98.998 crore for the half year ended September 30, 2026, compared with Rs 41.45 crore in the corresponding 2025 half year. Revenue from operations increased to Rs 846.212 crore from Rs 617.21 crore, while profit before tax increased to Rs 133.478 crore from Rs 56.024 crore. Earnings per share were Rs 12.03, compared with Rs 7.15.

Costs rose alongside revenue. Materials consumed increased to Rs 477.744 crore from Rs 346.4 crore, other expenses rose to Rs 113.044 crore from Rs 85.828 crore, and employee benefits expense increased to Rs 27.145 crore from Rs 21.341 crore. Finance costs declined to Rs 3.534 crore from Rs 4.819 crore, while depreciation and amortisation increased to Rs 13.585 crore from Rs 12.203 crore.

For the September 2026 quarter, profit after tax was Rs 37.975 crore, compared with Rs 17.112 crore in the September 2025 quarter. The filing says the September 2025 quarterly and half-year results were approved by the board but were not subject to limited review or audit. The statutory auditor issued an unmodified limited-review conclusion on the September 2026 standalone results and drew attention to those unreviewed comparative figures.

Conclusion

Prasol Chemicals' September 2026 filing shows a larger equity base after listing, with the Rs 80 crore fresh issue, half-year earnings and other equity movements taking total equity to Rs 617.399 crore. Non-current borrowings fell to nil, but the Rs 420 crore offer for sale did not provide company funding, and higher inventories and receivables coincided with a Rs 19.211 crore reduction in cash.

The filing does not disclose a future use-of-proceeds timetable, earnings target or capital-expenditure plan. The next reported period will show whether the Rs 147.895 crore inventory increase, Rs 73.469 crore receivables increase and Rs 36.322 crore property, plant and equipment purchases are followed by a change in operating cash flow from the Rs 11.714 crore half-year outflow.