Specialty chemicals maker Dorf Ketal eyes $300-350 mn in IPO
Dorf-Ketal Chemicals India Pvt. Ltd., a specialty chemicals maker, is planning to raise $300-350 million through an initial public offering and has invited investment bankers to make a pitch, three people with knowledge of the plans said. “The company is yet to assign bankers. The idea is to raise ₹2,500 crore to ₹3,000 crore through the public issue,” one of the persons cited above said.
The firm is likely to appoint banks such as Citi, Kotak, JP Morgan and Morgan Stanley among others, the second person quoted above said.
Dorf-Ketal Group, having grown through organic and inorganic routes, is likely to be valued at $1.5 billion to $2 billion, the second person added.
Emailed query to the spokesperson of Dorf Ketal did not elicit any response. Queries to the spokespersons of Citi and Kotak remained unanswered, while JP Morgan and Morgan Stanley declined to comment.
Dorf Ketal is one of the world’s largest suppliers of process chemicals that include cleaning agents, solvents, lubricants, refrigerants, hydraulic fluids, adhesives, inks and coatings, and additives for refineries, petrochemicals, fuels, plastics, and oil stimulation industries. Its process chemicals business treats over one-third of the oil refined by the 20 largest refineries in the world. Its specialty catalyst business is the largest manufacturer and marketer of organometallic catalysts in the world. Founded in 1992, Dorf Ketal has presence across India, the US, Brazil, Argentina, the
Netherlands, UAE, Bahrain, Singapore and Malaysia. Per the company’s sustainability report released earlier this year, its revenues for the financial year ending 31 March, 2023 stood at ₹3,987.9 crore.
In the last 12-24 months, the company made several acquisitions. In January, it acquired a majority stake in Pune-based Elixir Soltek for an undisclosed amount. Last year, a subsidiary, Ketal FZE, acquired Canada’s Fluid Energy Group’s global modified and synthetic acid business, which had a turnover of ₹480 crore. In October 2022, Dorf-Ketal acquired Clariant’s North American land oil business for an undisclosed amount. In April 2022, it acquired India-based Khyati Chemicals marking its entry into the performance chemicals space.
As per a 2023 report by EY, India is emerging as a preferred manufacturing hub for specialty chemicals for domestic and export markets. The Indian chemicals industry is a major player in the global market, ranking sixth in production and 14th in exports.