Dorf-Ketal Chemicals plans USD580 million IPO in India

Dorf-Ketal Chemicals India, a leading player in the global speciality chemicals industry, has announced plans for a USD580 million initial public offering (IPO). The IPO comprises a fresh issue worth INR15 billion (USD175 million) and an offer for sale of INR35 billion (USD405 million) by its majority shareholder, the Menon Family Holdings Trust. The funds raised will support the company’s expansion in the growing speciality chemicals market.

The IPO, approved by the company’s Board of Directors on 21 January 2025, is expected to open later this year, subject to regulatory approvals under SEBI and other governing bodies.

Established in 1992, Dorf-Ketal Chemicals caters to diverse industries, including oil & gas, refining, and petrochemicals. As of 31 October 2024, the company operates 16 manufacturing facilities across four countries, including eight in India. The company has 542 patents registered internationally, including 99 in the United States, and an additional 29 patents registered in India.

The IPO will see Dorf-Ketal listing its shares on India’s BSE and NSE stock exchanges, with a potential pre-IPO placement of INR3 billion (USD35 million) to reduce the fresh issue size. The offering is structured as a 100% book-built process, with participation from institutional and retail investors.

Dorf-Ketal’s financial performance underscores its robust growth:
Revenue for FY 2024: INR54.80 billion (USD642 million), a 42% increase year-on-year.
Net Profit: INR5.71 billion (USD67 million), a 31% rise over the previous fiscal year.

The speciality chemicals market, valued at USD4.2 trillion in 2023, is projected to grow to USD5.2 trillion by 2028. Speciality chemicals account for 27% of the total market, driven by trends in sustainability, innovation, and rising regional demand. Asia-Pacific, with its industrial growth and urbanisation, leads with a 44.5% market share.

India, a major player in speciality chemical exports, benefits from government incentives, competitive costs, and the “China+1” strategy adopted by global companies seeking supply chain diversification. The domestic market is expected to grow at a CAGR of 6.6% over the next few years.

Dorf-Ketal is primarily owned by the Menon Family Holdings Trust, which is divesting INR35 billion (USD405 million) worth of shares in this IPO. Promoters Subodh Menon and Sudhir Menon are key figures steering the company’s strategic direction, with support from Book Running Lead Managers such as JM Financial and Morgan Stanley.