Safex Chemicals (India) Ltd, a specialty chemicals player with a strong presence in the agrochemical sector, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise funds through an Initial Public Offering (IPO).
The proposed IPO comprises a fresh issue of equity shares aggregating up to Rs 450 crore and an offer-for-sale (OFS) of up to 3.57 crore shares by promoters and existing investors, including private equity firm ChrysCapital, which holds a 44.80 per cent stake. The issue also includes a reservation for eligible employees.
Proceeds from the fresh issue will primarily be used for repayment or prepayment of borrowings — Rs 255.59 crore for Safex Chemicals and Rs 110 crore for its subsidiary Shogun Organics. The remaining funds will be utilised for general corporate purposes. The company may also consider a pre-IPO placement of Rs 90 crore, which could reduce the size of the fresh issue.
The IPO will be conducted through the book-building process, allocating up to 50 per cent of the issue to qualified institutional buyers (QIBs), 15 per cent to non-institutional investors (NIIs) and 35 per cent to retail individual investors.
Incorporated in 1991 by the late Surinder Kumar Jindal and Surinder Kumar Chaudhary, Safex Chemicals has evolved from a branded agrochemical formulations firm to a specialty chemicals company with three key verticals—branded formulations, specialty chemicals and contract development and manufacturing. The company caters to both Indian farmers and global agrochemical companies.
Safex has expanded through strategic acquisitions, including Shogun Lifesciences and Shogun Organics in 2021 and UK-based Briar Chemicals in 2022. It now operates in 22 countries across six continents with a network of over 14,000 dealers and eight manufacturing facilities — seven in India and one in the UK.
Its proprietary mosquito repellent molecule ‘Renofluthrin’ has positioned the company as an innovator in the sector. Safex posted a revenue of Rs 1,584.78 crore in FY25, up 12.83 per cent from Rs 1,404.59 crore in FY24.
Axis Capital, JM Financial and SBI Capital Markets are the lead managers to the issue, while KFin Technologies is the registrar. The equity shares are proposed to be listed on NSE and BSE.
Source : Msn
