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Chemical manufacturer, Gujarat Polysol Chemicals has received market regulator Sebi's approval for an initial public offering (IPO). The company plans to raise 414 crore from the public issue. It will offer equity shares having a face value of 10 each. However, it is yet to announce details on the price band, total equity shares for the offer, and the timeline of the issue. The company filed its draft prospectus for IPO in March.

Sebi has given its observation letter to Gujarat Polysol Chemicals on July 18. Sebi's observation indicates its approval for launching an IPO.

From the total of 414 crore, the company will have a fresh issue of equity shares worth 87 crore, and the remaining 327 crore is the offer for sale (OFS). Under the OFS, promoters like Shaileshkumar Balvantrai Desai will sell shares worth 183 crore, while Umang Shailesh Desai to offload shares worth 38 crore, Polysol Financial Services LLP to divest 102 crore shares, and Apurva International to sell 4 crore shares.

Of the total issue, 50% is reserved for qualified institutional buyers (QIB), 15% for non-institutional investors, and the remaining 35% for retail individual investors.

INGA Ventures is the book-running lead manager for the IPO.

The company plans to utilise the net proceeds for repayment of certain borrowings and general corporate purposes.

Gujarat Polysol Chemicals, is one of the leading chemicals manufacturers for the Infra-tech (Construction), agro, dyes, and leather industries in India. The company is also the leading supplier of dispersing agents in the Infra-tech, dye and pigments, and textile and leather industries and a leading supplier of powder surfactants in India.

The company has three manufacturing facilities, located in Vapi and Sarigam in the State of Gujarat, and a unit located in the Union Territory of Dadra & Nagar Haveli and Daman and Diu. These three facilities have a cumulative manufacturing capacity of 130,400 MT per annum.

The Indian chemicals market is valued at $169 billion in the year 2020 (~4% share in the global chemical industry) with the commodity chemicals accounting for almost 50%. It is expected to reach $300 billion in the next 5 years, with an anticipated growth of ~12% CAGR.

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