IPO Details
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Schedule of Dorf-Ketal Chemicals India Ltd IPO
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Allotment of bids
Refund Initiation
Listing on exchange
About Dorf-Ketal Chemicals India IPO
The IPO consists of a fresh issue of equity shares aggregating up to ₹1,500 crore and an offer for sale of equity shares aggregating up to ₹3,500 crore, making the total offer size up to ₹5,000 crore. Each equity share has a face value of ₹5.
Objectives of Dorf-Ketal Chemicals India IPO
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Repayment/prepayment of all or part of the company’s outstanding borrowings.
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Investment in its subsidiary, Dorf Ketal Chemicals FZE, for repaying or prepaying its outstanding borrowings.
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Allocation for general corporate purposes.
Dorf-Ketal Chemicals India IPO Valuation
Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Investors (NIIs) | Not less than 15% of the net offer |
Retail-individual Investors (RIIs) | Not less than 35% of the net offer |
Industry Outlook
India's specialty chemicals industry is poised for significant growth, driven by domestic demand from end-user industries such as pharmaceuticals, personal care, and textiles. The pharmaceutical sector is expected to grow at a CAGR of 14.01%, increasing from USD 59.20 billion in FY2024 to USD 130 billion in FY2030, while the textile industry is projected to reach USD 350 billion by FY2030. Export opportunities are robust, with India leveraging its cost advantage in labour and production to emerge as a competitive global supplier. Government policies, including the Production Linked Incentive (PLI) scheme with investments exceeding ₹1.97 lakh crore, are fostering growth by boosting domestic manufacturing and capacity. Technological advancements like digitalisation, green chemistry, and R&D investments further enhance production efficiency, align with sustainability goals, and cater to environmentally conscious customers.
Company Information
The company is a global manufacturer and supplier of specialty chemicals focused on research, development, and innovation for hydrocarbons and industrial supply chains, including oil and gas, refining, and petrochemicals. Established in 1992, it is one of India's leading producers in the development and application of specialty chemicals, with 16 manufacturing facilities across four countries, including eight in India. The company holds 542 patents outside India, with 99 U.S. patent registrations and 29 patents in India, making it a globally recognised brand in the specialty chemicals industry. Its marquee customer base includes renowned companies such as Reliance Industries, Petronas, Indian Oil Corporation, PPG Industries, Clariant, and Vedanta. The company offers products mainly in two categories: specialty chemicals for hydrocarbons and industrial specialty chemicals, addressing diverse customer needs across industries.
Dorf-Ketal Chemicals India Ltd Strengths
Notable market presence and diverse product portfolio
The company specialises in hydrocarbons and industrial specialty chemicals, including oil field chemicals, refinery chemicals, and petrochemicals. It ranked first in revenue market share in India and Brazil in 2023, and globally among the top five in fuel additives. Its broad geographic presence is supported by 16 manufacturing facilities across India, Brazil, Canada, and the U.S.
Strong R&D capabilities for innovation
The company focuses heavily on innovation through R&D and holds 542 patents outside India, including 99 in the U.S. and 29 within India. It operates dedicated R&D centres in India, Singapore, Canada, and Brazil, aligned with customer needs. Its breakthrough technologies improve efficiency, promote sustainability, and drive product advancements.
Long-standing relationships with customers
The company maintains strong, long-term customer tie-ups, boasting 1,437 customers as of FY2024. Its partnerships include industry giants like Reliance Industries and Indian Oil Corporation. Over 40 of its top 50 customers have relationships lasting for more than five years, demonstrating high customer retention and trust in its innovative solutions.
Risks of Dorf-Ketal Chemicals India IPO
- Dependence on hydrocarbon specialty chemicals revenue
A significant portion of the company's revenue (81.15% for six months ended September 2024) is derived from hydrocarbon specialty chemicals. Climate-related transition risks, such as evolving legislation, fuel conservation measures, and technological advancements, may lead to reduced demand for hydrocarbons, adversely impacting the company’s financial condition and operational results.
- Concentration of revenue from top customers
The company derives a substantial portion of revenues from its top 10 customers (33.03% for six months ended September 2024). Losing contracts or failing to maintain commercially viable terms with these customers could adversely affect the business, emphasising its reliance on key clients for stable operations and financial performance.
- Reliance on limited-source suppliers for raw materials
The company lacks long-term agreements with its raw material suppliers, depending on single or limited-source suppliers. Any increase in costs, quality issues, or supply chain disruptions could negatively affect production and profitability, posing a risk to smooth operations and the company's financial outcomes.
All Financial Information about Dorf-Ketal Chemicals India Ltd
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Name of the Company | Price to Earning | EPS (Basic) (₹) | NAV per Share (₹) |
|---|---|---|---|
Dorf-Ketal Chemicals India | - | 11.56 | 49.14 |
SRF Limited | 55.86 | 45.06 | 386.78 |
Fine Organic Industries Limited | 32.45 | 134.34 | 629.68 |
Vinati Organics Limited | 52.94 | 31.15 | 248.55 |
Navin Fluorine International Limited | 66.38 | 54.57 | 477.48 |
Gujarat Fluorochemicals Limited | 94.11 | 39.60 | 525.94 |
Atul Limited | 60.39 | 109.54 | 1,741.97 |
Anchor Investor Bidding Date: TBA
IPO Registrar and Book Running Lead Manager
Registrar: MUFG Intime India Private Limited
Book Running Lead Managers: 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, Motilal Oswal Investment Advisors Limited
Business Model
The company operates a business model focused on the research, development, and production of specialty chemicals for the hydrocarbon and industrial sectors. It generates revenue primarily through the sale of these specialised chemical products, leveraging its strong R&D capabilities and manufacturing networks to serve a diverse customer base across various industries.
Company Growth Trajectory
The company's revenue from operations exhibited consistent growth, increasing from ₹2,589.53 crore in FY22 to ₹3,866.48 crore in FY23 (a 49.31% growth) and further to ₹5,479.53 crore in FY24 (a 41.72% growth). Similarly, EBITDA grew steadily, rising from ₹381.80 crore in FY22 to ₹731.16 crore in FY23 (91.50% growth) and to ₹950.42 crore in FY24 (a 29.99% growth), reflecting strong operational performance.
Dorf-Ketal Chemicals India Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 5,559.59 | 3,898.40 | 2,632.67 |
Profit Before Tax (in ₹ crores) | 779.54 | 615.88 | 330.06 |
Profit After Tax (in ₹ crores) | 601.96 | 451.10 | 265.96 |
EPS (Basic) | 11.56 | 8.85 | 5.15 |
EBITDA (in ₹crores) | 950.42 | 731.16 | 381.80 |
Dorf-Ketal Chemicals India Balance Sheet
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 779.54 | 615.88 | 330.06 |
Net Cash Flow from Operating Activities (₹ crores) | 754.76 | 220.44 | 98.12 |
Net Cash Flow Used in Investing Activities (₹ crores) | (545.64) | (955.57) | (239.99) |
Net Cash Inflow/(Outflow) from Financing Activities (₹ crores) | (69.71) | 873.89 | 103.56 |
Net Cash & Cash Equivalents (₹ crores) | 139.40 | 138.76 | (38.29) |
How to Check Allotment Status of Dorf-Ketal Chemicals India IPO?
- Visit the Registrar's Website
To check the IPO allotment status for Dorf-Ketal Chemicals India IPO, visit the official website of MUFG Intime India Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.
- Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.
On the BSE IPO page, follow these steps
- Select 'Equity' from the dropdown menu
- Choose 'Dorf-Ketal Chemicals India' in the next dropdown
- Enter your application number
- Enter your PAN
- Click 'Search'
Your Dorf-Ketal Chemicals IPO allotment status will be displayed.
- Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Dorf-Ketal Chemicals IPO allotment status.
Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Then click 'Submit'. Your Dorf-Ketal Chemicals IPO bid and allotment details will be displayed.
How to Apply for Dorf-Ketal Chemicals India IPO?
- Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Dorf-Ketal Chemicals India Ltd IPO FAQs
What is the Dorf-Ketal Chemicals Ltd IPO?
The IPO consists of a fresh issue of equity shares up to ₹1,500 crore and an offer for sale of equity shares aggregating up to ₹3,500 crore, making the total offer size up to ₹5,000 crore.
Is Dorf-Ketal Chemicals IPO coming?
Yes, Dorf-Ketal Chemicals Ltd is expected to come up with its IPO soon.
Who is the Chairman of Dorf-Ketal Chemicals?
Sudhir Menon is the Chairman of Dorf-Ketal Chemicals.
What is the lot size of shares of Dorf-Ketal Chemicals Ltd IPO?
The company hasn’t given any information on the lot size yet.
From where can I read more about the IPO of Dorf-Ketal Chemicals Ltd?
You may read more about Dorf-Ketal Chemicals and its IPO from the company’s draft red herring prospectus (DRHP) here.
