Supreet Chemicals Limited, a leading specialty chemical intermediates manufacturer, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its Initial Public Offering (IPO). The proposed IPO comprises a fresh issue of equity shares aggregating up to ₹499 crore.
The company plans to deploy the net proceeds to finance capital expenditure for its upcoming Manufacturing Facility 4, with an estimated investment of ₹310 crore. Additionally, ₹65 crore will be used for partial repayment or prepayment of certain borrowings, while the remaining funds will go toward general corporate purposes.
IIFL Capital Services Limited is acting as the sole Book Running Lead Manager (BRLM) for the issue, and the IPO is expected to attract strong investor interest given the company’s robust financial growth and expansion plans.
Core Strengths and Market Position
Supreet Chemicals is one of the few Indian players with the capability to handle more than 15 chemistries and up to 15 multi-step unit operations, enabling it to meet the requirements of a diverse set of end-products and applications. Its product portfolio includes specialty chemical intermediates such as MCA, Sulphonamides, and NAPSA, catering to industries like textiles, pharmaceuticals, performance chemicals, personal care, and agrochemicals.
According to an F&S Report, the company is among the top manufacturers in its segment and is uniquely positioned due to its expertise in managing complex chemical processes. Its listed peers include Deepak Nitrite, Aarti Industries, Atul, Balaji Amines, Alkyl Amines Chemicals, Neogen Chemicals, and Rossari Biotech.
Robust Financial Performance in FY25
For FY25, Supreet Chemicals reported a strong 103% year-on-year growth in net profit, rising to ₹51.9 crore from ₹25.6 crore in FY24. Revenue grew 51.2% during the same period to ₹362.5 crore, compared to ₹239.8 crore in the previous fiscal year, highlighting the company’s expanding operations and growing demand for its products.
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