Supreet Chemicals Limited, based in Gujarat, has submitted its Draft Red Herring Prospectus (DRHP) with SEBI on September 5–6, 2025, to raise ₹499 crore through an Initial Public Offering (IPO). The entire offering is structured as a fresh equity issue, meaning no shares are being sold by existing shareholders via an offer-for-sale component.
Purpose of Funds & Pre-IPO Placement
The net proceeds from the IPO will be deployed as follows:
- ₹310 crore towards financing a greenfield manufacturing facility—Facility 4 at Vapi.
- ₹65 crore to repay or prepay outstanding borrowings.
- Remaining funds for general corporate purposes.
The company may also consider a pre-IPO placement of up to ₹99 crore, which would proportionately reduce the size of the fresh issue.
Financial & Operational Highlights
- Outstanding Borrowings: ₹200–203.5 crore as of mid-2025.
- FY25 Performance: Revenue jumped over 50% to ₹362.5 crore, and Profit After Tax more than doubled to ₹51.9 crore, reversing the previous year’s drop in both metrics.
Business Profile
Supreet Chemicals specializes in manufacturing specialty chemical intermediates, handling over 15 complex chemistries—including MCA, sulphonamides, and NAPSA—and producing SAMBA via multi-step operations.
Its products serve a variety of sectors:
- Textiles
- Pharmaceuticals
- Performance chemicals
- Personal care
- Agrochemicals
Supreet competes with listed peers such as Deepak Nitrite, Aarti Industries, Atul, and others.
IPO Manager & Listing Plans
IIFL Capital Services is the appointed book-running lead manager, while MUFG Intime India will serve as the registrar. The shares are expected to list on both BSE and NSE after approvals and book-building.
At a Glance: Snapshot Table
| Detail | Information |
|---|---|
| IPO Size | Up to ₹499 crore (100% fresh issue) |
| Pre-IPO Placement | Up to ₹99 crore (optional) |
| Use of Funds | ₹310 cr (greenfield project), ₹65 cr (debt), balance for general purposes |
| Borrowings | ₹200–203.5 crore (as of mid-2025) |
| FY25 Financials | Revenue ₹362.5 cr (+51%); PAT ₹51.9 cr (up 103%) |
| Lead Manager | IIFL Capital Services |
| Registrar | MUFG Intime India |
Why This Matters
- For Investors: Supreet’s IPO offers exposure to India’s growing specialty chemicals sector, with strong near-term earnings improvements and expansion plans.
- For the Company: The fresh equity will fuel capacity expansion and deleveraging, strengthening its growth and financial profile.
- For the Market: As part of a broader wave of mid-cap IPOs, Supreet’s entry could spotlight opportunities in India’s chemicals supply chain.
