DORF-KETAL CHEMICALS INDIA LIMITED FILES DRHP WITH SEBI

DORF-KETAL CHEMICALS INDIA LIMITED FILES DRHP WITH SEBI

Dorf-Ketal Chemicals India Limited, an R&D and innovation-focused global manufacturer and supplier of specialty chemicals across the hydrocarbons and industrial supply chains, including the oil and gas, refining and petrochemicals industries, and customers with diverse applications across industrial segments, has filed its Draft Red Herring Prospectus (“DRHP”) with market regulator Securities and Exchange Board of India (“SEBI”).

The IPO comprises of a fresh issue of equity shares of face value of ₹5 each aggregating up to ₹ 1500 Crores and an offer for sale of equity shares of face value of ₹5 each aggregating up to ₹ 3500 Crores. The total issue comprises of equity shares of face value of ₹5 each aggregating up to ₹ 5000 Crores. The offer for sale comprises of equity shares of face value of ₹5 each aggregating up to ₹ 3500 Crores by Menon Family Holdings Trust (Promoter Selling Shareholder)

Established in 1992, Dorf-Ketal Chemicals India Limited is one of the major producers in the development, commercialization and application of specialty chemicals in India. The company offers products across two categories - specialty chemicals for hydrocarbons and industrial specialty chemicals. The specialty chemicals for hydrocarbons category includes oil field, refinery chemicals and petrochemicals, fuel additives and modified acids as key sub-categories and the industrial specialty chemicals category includes organometallic titanates and zirconates, polyvinyl formamide (“PVF”), OBA and lubricant additives as key sub-categories. As at October 31, 2024, the marquee customer base included Reliance Industries, Petronas, Indian Oil Corporation, PPG Industries, Clariant, Liberty Energy, Italiana Petroli, and Vedanta. During the six months ended September 30, 2024, the company had 1,322 customers.

In 2023, the company ranked first by revenue market share in India and Brazil in oil field, refinery chemicals and petrochemicals and fuel additives as well as ranked first by revenue market share globally in modified acids, organometallic titanates and zirconates and PVF and were among the top five companies globally in fuel additives, according to the F&S Report.

As at October 31, 2024, the company has 16 manufacturing facilities across four countries, including eight in India, two in Brazil, three in the United States and three in Canada. The eight manufacturing facilities in India have a cumulative installed capacity of 147,770 MTPA whereas the manufacturing facilities in Brazil, the United States and Canada have a cumulative installed capacity of 194,770 MTPA, as at September 30, 2024. The manufacturing the facility in Mundra, Gujarat is the largest facility, with an installed production capacity of 98,900 MTPA. It is also one of the world’s largest manufacturing facilities of organometallic titanates. The dedicated R&D facilities are situated in India, Singapore, Canada and Brazil. With 542 patent registrations outside India, including 99 U.S. patent registrations, and 29 patent registrations in India, the company is one of the few India-based chemical company with global brand recognition.

The company has a strong track record of acquiring and integrating businesses driving expansion of the offerings and geographic footprint. The recent acquisitions include Texas-headquartered Impact Fluid Solutions LP in June 2024, Canada’s Fluid Energy Group’s global modified and synthetic acid business in January 2023, Clariant’s North American land oil business in March 2023 and Khyati Chemicals Private Limited in April 2022.

From FY22 to FY24, the revenue from operations grew at a CAGR of 45.47% to INR 54,795 million, EBITDA grew at a CAGR of 60.54% to INR 9,504 million and the restated profit after tax for the year grew at a CAGR for the Period/Year of 50.18% to INR 6,020 million.

Dorf-Ketal Chemicals India Limited strives to capitalise on the opportunities in the specialty chemicals segment, leveraging their market leadership position, global manufacturing and distribution network, R&D capabilities and customer-centric approach for growth.

JM Financial Limited, Citigroup Global Markets India Private Limited, HSBC Securities and Capital Markets (India) Private Limited, J.P. Morgan India Private Limited, Morgan Stanley India Company Private Limited and Motilal Oswal Investment Advisors Limited are the Book Running Lead Managers to the issue.