Delhi-based agrochemical firm Safex Chemicals, backed by Indian private equity giant ChrysCapital, has filed draft IPO papers with SEBI to raise funds through a combination of fresh equity and offer-for-sale. The IPO aims to reduce debt and strengthen financials.
Safex Chemicals (India) Ltd, an agrochemical company backed by Indian private equity giant ChrysCapital, has filed draft red herring prospectus with the Securities and Exchange Board of India (SEBI) for an upcoming initial public offering (IPO).
The IPO structure includes a fresh issuance of equity shares amounting to ₹450 crore and an offer-for-sale (OFS) of 3.57 crore shares by the company’s current stakeholders. The OFS will see participation from the promoters as well as ChrysCapital’s investment entities — Sarcoline, Anchor Partners, and Sage Investment Trust. ChrysCapital currently holds a 44.80% stake in the company, while promoters hold 54.3%.
The IPO proceeds, as per the draft filing, will be largely used to reduce outstanding borrowings. ₹365.6 crore out of the fresh issue will be allocated for debt repayment, while the remainder will be used for general corporate purposes. As of April 2025, Safex Chemicals and its subsidiaries had total borrowings amounting to ₹889 crore.
Additionally, the company is considering a pre-IPO placement of up to ₹90 crore, which may reduce the size of the public issue.
Founded in 1991 and headquartered in Delhi, Safex Chemicals operates across three core verticals—branded formulations, specialty chemicals, and contract development and manufacturing (CDMO) services. The company has a broad product range with 140 agrochemical products, including insecticides, herbicides, fungicides, fertilizers, and plant growth regulators.
In the CDMO space, Safex serves global agrochemical firms through its overseas manufacturing unit in Norwich, United Kingdom.
In FY25, Safex Chemicals reported a revenue of ₹1,584.8 crore, up 12.8% from ₹1,404.6 crore in FY24. Despite narrowing its losses to ₹14.3 crore (from ₹22.8 crore in FY24), the company recorded an exceptional loss of ₹54 crore during the same period.
The company competes with listed players like Bayer Cropscience, Sumitomo Chemical India, Rallis India, Dhanuka Agritech, Navin Fluorine, Vinati Organics, PI Industries, and Anupam Rasayan.
The IPO will be managed by merchant bankers Axis Capital, JM Financial, and SBI Capital Markets.
Safex Chemicals’ IPO is expected to strengthen its balance sheet and support strategic growth while enhancing investor confidence in India’s growing agrochemical sector.