Gujarat-based chemicals maker Dorf Ketal Chemicals India Ltd has likely deferred its initial public offering (IPO) as it seeks to raise up to ₹2,000 crore in a pre-IPO funding round, according to two people familiar with the matter.
The funds will finance part of the proposed acquisition of Italmatch Chemicals SpA, a specialty chemicals group currently backed by private equity firm Bain Capital, one of the two persons cited earlier said, both of whom spoke on the condition of anonymity.
The company is in talks with global private equity firms for participation in the fundraising, the second person said. Till the Italmatch deal is closed, the public listing is on the backburner, this person added.
Deliberations are ongoing, and details of the equity funding round, including the final size, valuation and investors, could change, both the people added.
The equity raise constitutes a component of the financing package Dorf Ketal is assembling for the Italmatch transaction. The transaction value is estimated at $1.6-1.8 billion currently, Mint has learnt.
The Italmatch deal
Italmatch, headquartered in Genoa, Italy, manufactures chemical additives for water treatment, oil and gas, lubricants, and plastics. Bain Capital acquired the business in 2018 from private investment house Ardian. The company operates 20 manufacturing plants globally and reported revenues of €491 million for nine months through September 2025, along with an adjusted earnings before interest, taxes, depreciation, and amortization (Ebitda) of €102.5 million.
The acquisition of Italmatch will diversify the product portfolio of Dorf Ketal, adding water treatment chemicals to its hydrocarbon offerings, while also expanding the manufacturing footprint of the Indian company within the European Union.
Alongside the equity raise, Dorf Ketal is also negotiating with private credit funds and banks to secure debt financing for the remainder of the purchase price. This debt structure is expected to include non-recourse loans, non-convertible debentures, and promoter-level debt, structured across currencies to align with the target company's revenue profile.
The Economic Times was the first to report on the plans for a debt raise in October 2025.
Queries emailed to Dorf Ketal on 26 February remained unanswered till press time.
IPO plans
The chemicals maker previously filed draft papers with the Securities and Exchange Board of India (Sebi) in January 2025 for a ₹5,000 crore IPO. The offering included a fresh issue of shares worth ₹1,500 crore and an offer for sale of ₹3,500 crore by the promoter Menon Family Holdings Trust. The company planned to utilise ₹1,162 crore from the proceeds from the fresh issue to retire existing debt. Banks including JM Financial Ltd, Citigroup Global Markets India Pvt, HSBC Securities and Capital Markets India Pvt , JPMorgan India Pvt, Morgan Stanley India Co and Motilal Oswal Investment Advisors Ltd were hired to manage the share sale.
The market regulator then approved the company's IPO in late May 2025. After receiving Sebi approval, a company must launch its IPO within 12 months to avoid a refiling.
Dorf Ketal's move to delay the public market debut is likely to play out in its favour in the longer run, an investment banker at a homegrown firm said. The voluntary delay allows the firm to focus on finalising the Italmatch acquisition and integrate the businesses before engaging public market investors. The pre-IPO equity injection can also lead to a change in the offer structure, this banker added, wishing to remain unnamed.
Founded in 1992 by Subodh and Sudhir Menon, Dorf Ketal produces specialty chemicals with customers including Reliance Industries, Petronas, Indian Oil Corporation, PPG Industries, Clariant, Liberty Energy, Italiana Petroli, and Vedanta. The company operates 16 manufacturing facilities across India, Brazil, Canada, and the US. It reported a revenue of ₹6,130 crore in the fiscal year ended March 2025. The company has historically expanded its operations through acquisitions, and the latest ones include the purchase of Khyati Chemicals in 2022, Clariant’s north American land oil business, Fluid Energy Group's global modified and synthetic acid business in 2023, and Elixer Soltek's acquisition in 2024.