New Delhi, July 5, 2025 — Safex Chemicals (India) Limited has filed its Draft Red Herring Prospectus (DRHP) with SEBI, detailing its proposed Initial Public Offering (IPO) comprising a fresh issue of equity shares worth ₹4,500 million and an Offer for Sale (OFS) of up to 35.73 million equity shares by existing shareholders, including promoters and institutional investors.
IPO Overview
Component
Details
Fresh Issue
Up to ₹4,500 million
Offer for Sale (OFS)
35,734,818 equity shares
Total Offer Size
[To be determined upon pricing]
Face Value
₹1 per share
Pre-IPO Placement
Up to ₹900 million (optional)
Listing Exchanges
NSE and BSE (proposed)
Key Selling Shareholders & Their Acquisition Costs
Name
Equity Shares Offered
Weighted Avg Cost (₹/share)
Sarcoline Limited
29,105,996
₹62.11
Anchor Partners
1,088,234
₹83.48
Sage Investment Trust
605,770
₹83.48
Surinder Kumar Chaudhary
1,151,088
Nil (gift/bonus)
Rajesh Kumar Jindal
748,198
Nil (gift/bonus)
Neeraj Kumar Jindal
499,098
₹1.64
Piyush Jindal
499,098
₹1.64
Other Family Shareholders
Various
Mostly Nil (gift/bonus)
Objective of the IPO
Safex Chemicals aims to utilize net proceeds from the fresh issue for:
Use of Funds
Estimated Allocation (₹ Mn)
Repayment/prepayment of borrowings (parent company)
₹2,555.86
Investment in Shogun Organics for debt repayment
₹1,099.96
General Corporate Purposes
[To be finalized]
Financial Snapshot (Restated Consolidated)
Metric
FY25
FY24
FY23
Revenue from Operations (₹ Mn)
15,847.80
14,045.91
11,610.18
Loss for the Year (₹ Mn)
(142.86)
(227.88)
(10.17)
Total Assets (₹ Mn)
20,843.55
19,234.26
19,051.72
Total Borrowings (₹ Mn)
8,303.94
6,770.90
6,802.18
Net Worth (₹ Mn)
6,114.60
6,261.45
6,488.77
Despite a robust topline and international footprint, the company has been in the red due to one-time charges including goodwill impairment and exceptional costs.
Business Highlights
3-Pronged Vertical Model: Branded Formulations (62.47% of revenue), CDMO, and Specialty Chemicals
Global Presence: Exporting to 22 countries; 29.23% of FY25 revenue from outside India
Manufacturing Footprint: 8 plants including one CDMO facility in Norwich, UK
Prominent Customers: Bayer AG (CDMO), Godrej (specialty chemical supply for Renofluthrin)
Risk Flags Highlighted in DRHP
3-year consecutive net losses
High working capital intensity and dealer dependency
Significant related party transactions (185.8% of FY25 revenue)
One-time goodwill impairment of ₹521.35 million in FY25
Environmental remediation provision of ₹511.17 million for Briar Chemicals UK
Promoter Holding
Name
Pre-Offer Holding
Neeraj Kumar Jindal
10.43%
Piyush Jindal
10.43%
Rajesh Kumar Jindal
9.63%
Surinder Kumar Chaudhary
7.48%
Total Promoter Group
54.30%
About the Company
Safex Chemicals (India) Ltd, incorporated in 1991, is a Delhi-based agrochemical and specialty chemicals manufacturer. It offers branded formulations, custom development and contract manufacturing (CDMO), and exports to over 22 countries. The company operates 8 manufacturing units, including a facility in Norwich, UK. The equity shares are proposed to be listed on NSE and BSE.
