There will be a buzz in the IPO market this year, and one of the prominent names in it is Dorf-Ketel Chemicals India. The company has filed preliminary papers with SEBI to raise Rs 5000 crore.
Features of IPO
Dorf-Kettel Chemicals India’s IPO includes fresh equity shares worth Rs 1,500 crore. Along with this, shares worth Rs 3500 crore have been offered for sale by the promoter Menon Family Holdings Trust. The company is planning to raise funds of Rs 300 crore in the pre-IPO round, due to which the size of the IPO may be small. The company intends to use Rs 1,162 crore of the fresh issue proceeds primarily to repay loans taken by itself and subsidiary Dorf Kettle Chemicals FZE, while the remaining amount will be used for general corporate purposes.
Company Background
Dorf-Kettel Chemicals was founded in 1992 and has operations in four countries, including eight manufacturing facilities in India.
Customer and Financial Performance
The company’s clients include Mukesh Ambani’s Reliance Industries, as well as other major companies such as Petronas, Indian Oil Corporation, and Vedanta. As of September 2024, the company had 1322 customers. In fiscal year 2024, the company’s profit grew 33.4 percent to Rs 602 crore, while revenue grew 41.7 percent to Rs 5479.5 crore.
Merchant Bankers Team
The company has appointed six merchant bankers for its IPO, including JM Financial, Citigroup Global Markets India, HSBC Securities & Capital Markets (India), JP Morgan India, Morgan Stanley India Company and Motilal Oswal Investment Advisors.
