Speciality Chemicals Company Safex Chemicals files DRHP for IPO
Safex Chemicals (India) Limited, a specialty chemicals company with a focus on agrochemicals, with a presence across the agrochemical value chain, has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO).
The IPO, with a face value of Rs.1, is a mix of fresh issue of shares up to Rs 450 crore and an offer-for-sale up to 35,734,818 equity shares by promoters, investors and other selling shareholders. The offer also includes a subscription reservation by eligible employees in the employee reservation portion.
Chrys Capital had invested in the Company in March 2021 and September 2022 and owns 44.80% of the equity share capital.
The proceeds from the fresh issue to the extent of Rs 255.59 crore for repayment/prepayment, in part or full, of certain of or all of borrowings availed by the Company; and Rs 110 crore for repayment/prepayment, in part or full, of certain of or all of borrowings availed by its Subsidiary, namely, Shogun Organics, through investments in such Subsidiary; and general corporate purposes.
The company, in consultation with the book-running lead managers, may consider a pre-IPO placement of Rs 90 crore. If such placement is completed, the fresh issue size will be reduced. The pre-IPO placement if undertaken shall not exceed 20% of the size of the fresh issue.
The Offer is being made through the book-building process, wherein not more than 50% of the offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the offer is assigned to non-institutional and retail individual bidders respectively.
Safex Chemicals (India) was incorporated in 1991 by the late Surinder Kumar Jindal and Surinder Kumar Chaudhary. The company operates in three business verticals - branded formulations, specialty chemicals and contract development and manufacturing (“CDMO”) catering to the needs of farmers and global agrochemical companies. The Company has served farmers for over three decades to help increase crop productivity by providing a wide range of crop protection products.
The company has significantly grown its operations over the years both, organically and inorganically, evolving from a pure-play branded agrochemical formulations company to a specialty chemicals company, with internal synergies within its business verticals. It has undertaken a series of acquisitions acquiring Shogun Lifesciences in July 2021, Shogun Organics in September 2021 and Briar Chemicals in the United Kingdom in October 2022, as a result of its growth initiatives, its operations are spread across 22 countries in six continents, as of March 31, 2025.
According to the F&S Report, it is one of the fastest growing companies in the agrochemical industry in India in terms of revenue growth between Fiscals 2023 and 2025. The company has also created and patented 'Renofluthrin' — India’s first indigenous mosquito repellent molecule. The pyrethroid-based active ingredient offers long-lasting protection against mosquitoes while ensuring lower toxicity. It has a robust product portfolio ranging from active ingredients, intermediates and formulations catering to agro chemical and household insecticides market and sells its branded products under three separate umbrella brands - “Safex”, “Indo Swiss” and “Smith n Smith”. It has a pan-India network with over 14,000 active dealers. It has seven manufacturing units in India and one in United Kingdom.
Safex has established relationships with leading global agrochemical, serving customers in several international jurisdictions including in Europe, United States and Australia.
Safex Chemicals (India) Limited's revenue from operations increased by 12.83% from Rs.1,404.59 crore in Fiscal 2024 to Rs.1,584.78 crore in Fiscal 2025, primarily due to an increase in the revenue from sale of brand formulations; and an increase in the revenue from sale of specialty chemicals.
Axis Capital Limited, JM Financial Limited and SBI Capital Markets Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.
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