Safex Chemicals IPO

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To be announced
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About Safex Chemicals

Safex Chemicals (India), incorporated in 1991, is a speciality chemicals company operating across the agrochemical value chain in 22 countries. The company operates three business verticals: branded formulations with 140 products, speciality chemicals manufacturing, and contract development and manufacturing services. It maintains six manufacturing facilities in India and serves customers through 14,950 active dealers. The company supplies to global agrochemical companies including Bayer AG and Godrej Consumer Products Limited. Key acquisitions include Shogun Lifesciences (2021), Shogun Organics (2021), and Briar Chemicals UK (2022). As of March 31, 2025, the company employed 1,555 full-time employees and holds manufacturing operations across India and the United Kingdom.

Financials of Safex Chemicals

Issue size

Funds Raised in the IPO Amount
Overall ₹crores
Fresh Issue ₹450 crores
Profit after tax  ₹crores

Utilisation of proceeds

Purpose INR crores (%)
Repayment/prepayment, in part or full, of certain of or all of borrowings 255.59 (56.79%)
Repayment/prepayment, in part or full, of certain of or all of the borrowings availed by Subsidiary, namely, Shogun Organics 110.00 (24.44%)
General corporate purposes 84.41 (18.7%)

Strengths

  • Differentiated business model with a presence across the agrochemical value chain.
  • Unique multi-brand strategy with a pan-India direct distribution network in our branded formulation business.
  • Robust product portfolio in the speciality chemicals business.
  • CDMO business with established relationships with global agrochemical companies.
  • Efficient working capital cycle.
  • Experienced promoters and senior management team and investor.

Risks

  • The company operates without long-term supplier contracts, exposing it to raw material supply disruptions and price volatility.
  • Manufacturing facilities face operational risks that could interrupt production operations.
  • The business requires significant working capital, and inadequate funding could impact operations.
  • The company depends on third-party logistics providers for transportation and waste management services.
  • Certain loans are repayable on demand, requiring potential short-notice repayment.