Dorf-Ketal Chemicals India Pvt. Ltd., a specialty chemicals maker, is planning to raise up to $300-350 million through an initial public offering and has invited investment bankers to make a pitch, three people with knowledge of the company’s plans said.

“The company is yet to assign bankers. The idea is to raise 2,500 crore to 3,000 crore through the public issue,” one of the persons cited above said.

The Mumbai-based firm is likely to appoint banks such as Citi, Kotak, JP Morgan and Morgan Stanley among others, the second person quoted above said.

Dorf-Ketal Group, having grown through organic and inorganic route, has revenues of more than $1 billion for FY 24. The company is likely to be valued at around $1.5 billion to $2 billion, the second person added.

Emailed query to the spokesperson of Dorf Ketal did not elicit any response. Queries to the spokespersons of Citi, JP Morgan, Kotak, Morgan Stanley remained unanswered.

Dorf Ketal is one of the world’s largest suppliers of process chemicals that include cleaning agents, solvents, lubricants, refrigerants, hydraulic fluids, adhesives, inks and coatings, etc. and additives for refineries, petrochemicals, fuels, plastics, and oil stimulation industries. Its process chemicals business treats over one-third of the oil refined by the 20 largest refineries in the world. 

Its specialty catalyst business is the largest manufacturer and marketer of organometallic catalysts in the world. Founded in 1992, Dorf Ketal has presence across India, US, Brazil, Argentina, the Netherlands, UAE, Bahrain, Singapore and Malaysia. As per the company’s sustainability report released earlier this year, its revenues for the financial year ending 31 March, 2023 stood at 3,987.9 crore. 

In the last 12-24 months, the company made several acquisitions. In January, it acquired a majority stake in Pune-based Elixir Soltek for an undisclosed amount. Last year, a subsidiary, Ketal FZE, acquired Canada’s Fluid Energy Group’s global modified and synthetic acid business, which had a turnover of 480 crore. In October 2022, Dorf-Ketal acquired Clariant’s North American land oil business an undisclosed amount. In April 2022, it acquired India-based Khyati Chemicals marking its entry into performance chemicals space.

As per a June 2023 report by global consulting firm EY, India is emerging as a preferred manufacturing hub for specialty chemicals for domestic and export markets. Approximately 20% of the total chemicals market in India, the specialty chemicals sector has been playing a pivotal role in driving the chemicals industry’s growth.

The Indian chemicals industry is a major player in the global market, ranking sixth in production and 14th in exports. The sector provides essential building blocks and raw materials for many industries, including agrochemicals, pharmaceuticals, textiles, paper, paints, and soaps. The industry is valued at $220 billion, and projected to grow by approx. 9% p.a. during 2020-25 to reach $300 billion by FY 2025. The sector is expected to hit the $1 trillion mark by FY 2040.

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Published: 15 Apr 2024, 05:10 PM IST

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