Safex Chemicals Sets sights on IPO for Growth and Debt Settlement
Safex Chemicals (India) files for IPO to raise funds, offering Rs 450 crore in new shares and a sale of 35.73 million shares by promoters. The funds will address debt and corporate needs. The firm, invested in by Chrys Capital, spans 22 countries with revenue up by 12.83% to Rs 1,584.78 crore.
- Country:
- India
Speciality chemicals firm Safex Chemicals (India) has submitted initial documents to the capital markets regulator, SEBI, seeking approval for a public offering to generate funds.
The planned IPO includes a Rs 450 crore tranche of new shares alongside an offer-for-sale of 35,734,818 shares by the company's promoters and other stakeholders, as noted in the draft red herring prospectus (DRHP) filed on Thursday.
The capital raised will primarily go towards settling existing debts and supporting general corporate objectives. Chrys Capital, a considerable shareholder with a 44.80% stake, invested in Safex Chemicals in March 2021 and September 2022.
Safex Chemicals could opt for Rs 90 crore through a pre-IPO placement, which might decrease the fresh issue's size. Established in 1991, the company operates in branded formulations, speciality chemicals, and contract development and manufacturing, serving farmers with crop protection products to boost productivity.
The firm has grown through acquisitions, having bought Shogun Lifesciences and Shogun Organics in 2021, followed by Briar Chemicals in the UK in 2022. By March 31, 2025, Safex Chemicals operated in 22 nations, with seven manufacturing units in India and one in the UK.
The company's operational revenue rose by 12.83% to Rs 1,584.78 crore during fiscal 2025 from the previous year's Rs 1,404.59 crore. Axis Capital, JM Financial, and SBI Capital Markets are managing the issue's book-running, with plans to list shares on the NSE and BSE.
(With inputs from agencies.)
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