Safex Chemicals Submits DRHP to SEBI for ₹450 Crore IPO

Safex Chemicals (India) Ltd, a leading player in the speciality chemicals and agrochemical formulation segment, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an upcoming Initial Public Offering (IPO). The public issue comprises a fresh issue of equity shares worth ₹450 crore and an offer-for-sale (OFS) of up to 3.57 crore shares by existing shareholders, including private equity firm ChrysCapital.

IPO Structure: Fresh Issue + Offer-for-Sale

According to the DRHP, the IPO will be a combination of a primary fundraise and a stake dilution by current stakeholders. The ₹450 crore fresh issue proceeds will primarily be used for:

• Debt repayment

• General corporate purposes

Meanwhile, ChrysCapital, which owns a 44.8% stake in the company, along with other shareholders, will offload up to 3.57 crore equity shares via the OFS route. ChrysCapital had made its investment in two phases—in March 2021 and September 2022.

Potential Pre-IPO Placement of ₹90 Crore

Safex Chemicals has also proposed a pre-IPO placement of up to ₹90 crore. If this placement goes through, the company plans to adjust the size of the fresh issue accordingly. Such a move would allow the company to onboard institutional investors and build momentum ahead of the main offering.

About Safex Chemicals: A Legacy in Crop Protection

Founded in 1991 and headquartered in Delhi, Safex Chemicals has grown into a diversified agrochemical and speciality chemicals company, with operations spanning:

• Branded formulations

• Contract development and manufacturing (CDMO)

• Speciality chemical intermediates

Safex offers a wide array of crop protection solutions designed to enhance agricultural productivity and sustainability, making it a key player in India’s rural and agri-tech ecosystem.

Strategic Acquisitions and Global Expansion

Over the last few years, Safex Chemicals has actively expanded its global footprint and product portfolio through strategic acquisitions. Key deals include:

• Shogun Lifesciences and Shogun Organics (India) – acquired in 2021

• Briar Chemicals (United Kingdom) – acquired in 2022

These acquisitions have helped Safex bolster its manufacturing capabilities and strengthen its presence in the European agrochemical market. As of March 2025, the company has operations in 22 countries, with seven manufacturing units in India and one facility in the UK.

Strong Financial Performance in FY25

Safex Chemicals reported healthy revenue growth in the financial year 2024–25 (FY25). According to the DRHP:

• Operating revenue rose 12.8% year-on-year to ₹1,584.8 crore

• Revenue in FY24 stood at ₹1,404.6 crore

This performance reflects both organic growth and the contribution of its recent acquisitions, showcasing the company’s operational strength in the global chemicals and agri-inputs market.

Lead Managers and Listing Details

The IPO is being managed by a consortium of seasoned investment bankers:

• Axis Capital

• JM Financial

• SBI Capital Markets

Post-IPO, the equity shares of Safex Chemicals will be listed on both the NSE and BSE, providing liquidity and wider market participation.

Market Outlook and IPO Significance

The Indian speciality chemicals sector has seen significant investor interest due to the shift in global supply chains and India’s rising role in chemical manufacturing. Safex Chemicals’ IPO is expected to attract institutional and retail interest alike, given its:

• Solid growth trajectory

• Robust global operations

• Strategic acquisitions

• Trusted brand in the agrochemical space

The proceeds from the fresh issue will help reduce debt, strengthen the balance sheet, and support the company’s long-term growth plans.

Conclusion

Safex Chemicals' IPO filing with SEBI marks a significant milestone in its journey toward becoming a global agrochemical and speciality chemical powerhouse. With a strong operating history, global presence, and healthy financials, the company is poised to benefit from India’s booming chemical exports and growing demand for sustainable agriculture solutions.