Prasol Chemicals IPO Subscribed 0.30x on Day 1

Prasol Chemicals‘ ₹500 crore IPO was subscribed 0.30 times by 2:15 PM IST on its first bidding day, 8 September 2026. Retail investors led at 0.51 times, while qualified institutional buyers had not placed a single bid.

How the Book Filled Through Day 1

Bidding opened on Tuesday, 8 September 2026, and demand built up steadily through the session rather than arriving in a rush.

“Subscription” means how many times the shares reserved for a category were bid for. A reading of 0.30x means bids came in for 30% of the shares on offer.

Bidding hours for a public issue run from 10:00 AM to 5:00 PM IST on each open day, so these figures were still moving when they were recorded.

Retail Ahead, QIBs Yet to Bid

At the 2:15 PM IST reading, retail investors were the only category past the halfway mark at 0.51 times. Big HNIs (bHNI, applications above ₹10 lakh) stood at 0.39 times and small HNIs (sHNI, applications between ₹2 lakh and ₹10 lakh) at 0.10 times.

The qualified institutional buyer (QIB) portion, which covers mutual funds, insurers, banks and foreign investors, was at 0.00 times. The employee portion was also at zero.

In book-built issues, institutional bids are commonly entered on the closing day rather than the opening one, so a zero QIB reading on Day 1 is a normal pattern and not a final verdict on demand.

Anchor Book Raised ₹150 Crore a Day Before

On 7 September 2026, a day before the issue opened, Prasol Chemicals allotted 22,18,930 equity shares to 14 institutional investors at ₹676 per share. That works out to roughly ₹150 crore.

Anchor investors are large institutions allotted shares ahead of the public issue at a fixed price, with a lock-in period. Mutual funds took about 45% of this anchor book and life insurers about 27%, according to the allocation disclosure.

The anchor amount is carved out of the QIB portion, which is why the reported QIB subscription counts only fresh bids from Day 1 onwards.

Issue Size, Price Band and Key Dates

Category reservation is set at not more than 50% of the offer for QIBs, not less than 35% for retail investors and not less than 15% for non institutional investors.

Allotted shares are due to be credited on 15 September 2026, so anyone applying needs an active demat account and a linked trading account with a UPI ID before bidding closes on 10 September.

What Prasol Chemicals Makes

Incorporated in 1992, Prasol Chemicals is a forward integrated manufacturer of acetone based and phosphorus based specialty chemicals. Forward integrated means the company converts its own basic chemicals into higher value products in house instead of buying them from outside.

Its portfolio runs to more than 150 products: 21 acetone based, 53 phosphorus based and 76 other specialty chemicals such as surfactants, esters and acids. These go into performance chemicals, paints and inks, construction and adhesives, pharmaceuticals, agrochemicals, and home and personal care.

The company runs two plants in Maharashtra, at Khopoli and Mahad, with a combined capacity of 98,644 metric tonnes a year. As of 31 July 2026, it served about 1,600 customers and exported to 69 countries, with Alembic Pharmaceuticals, Lubrizol India, Rossari Biotech and Clean Science among its named customers.

The Financials Behind the ₹500 Crore Issue

Total income rose to ₹1,237.85 crore in FY 2025-26 from ₹1,015.54 crore in FY 2024-25, an increase of about 22%. Profit after tax nearly doubled to ₹83.12 crore from ₹43.57 crore, a rise of roughly 91%.

One caveat matters here. The FY 2025-26 numbers are on a standalone basis, while FY 2024-25 and FY 2023-24 are consolidated, so the growth rates are not a like for like comparison.

On operating ratios, the company reported RoNW of 18.53%, RoCE of 22.43% and a debt to equity ratio of 0.19 for the year ended 31 March 2026. EBITDA margin stood at 11.30% and PAT margin at 6.74%.

At the upper band of ₹676 and a pre issue EPS of ₹14.33, the issue is priced at about 47 times FY 2025-26 earnings, with a market capitalisation of ₹4,000.80 crore.

Of the money raised, only the ₹80 crore fresh issue reaches the company. Around ₹60 crore of that is earmarked for repaying or pre paying borrowings, with the balance for general corporate purposes. The ₹420 crore offer for sale goes to the selling shareholders, not to Prasol Chemicals.

Grey Market Premium Readings Did Not Agree

Grey market premium (GMP) is an unofficial price quoted by private dealers outside the exchanges. SEBI, NSE and BSE do not recognise or publish it.

On the morning of 8 September 2026, trackers were not in agreement. One showed ₹55 at 8:15 AM IST, another ₹85 at 10:25 AM IST, a gap of more than 50% between two readings taken two hours apart. That spread is a reminder that GMP is not a forecast of the listing price.

Risks Flagged in the Offer Document

• Plant concentration: Operations depend on two facilities in Maharashtra, which have faced regulatory shutdown orders from the Maharashtra Pollution Control Board in the past.
• Hazardous materials: The business involves handling hazardous chemicals. Past incidents include fatalities from a gas leakage.
• Litigation: There are outstanding legal proceedings, including statutory, criminal and tax matters.
• Cash flow swings: Net cash from operating activities has fluctuated significantly across recent financial years.
• Contingent liabilities: These stood at 24.33% of net worth as on 31 March 2026.

What to Watch on Day 2 and Day 3

The clearest signal will come from the QIB column, which was still blank on Day 1. Institutional bids typically land on the closing day, 10 September 2026, and that reading will show how anchor participation translates into wider institutional demand.

The second thing to track is whether retail crosses 1.00 times. Below that level, most valid retail applications usually receive full allotment. Above it, allotment for the minimum lot moves to a lottery run by the registrar.

Final subscription numbers are published by NSE and BSE after bidding closes at 5:00 PM IST on 10 September 2026. Once the stock lists on 16 September 2026, its price can be tracked live on any online trading platform.

Investments in securities markets are subject to market risks. This article is for information only and is not investment advice. Subscription, GMP and financial figures are as reported on 8 September 2026 and are subject to change.