Navi Mumbai-based Galaxy Surfactants has filed draft red herring prospectus (DRHP) with capital market regulator SEBI, seeking permission to launch its IPO. The specialty chemicals company, one of India’s leading manufacturers of surfactants, plans to sell 6,331,674 shares in the IPO through an Offer For Sale (OFS) by existing shareholders. As a result, Galaxy Surfactants IPO will not offer any proceeds to the company.
Galaxy Surfactants IPO will be managed by ICICI Securities, Edelweiss Financial Services, and JM Financial Institutional Securities while Link Intime will be the registrar. IPO price band will be finalized at a later stage.
Incorporated in 1986, the company has scaled immensely over the decades and its product portfolio now comprises over 200 product grades, which are marketed to more than 1,700 customers in over 70 countries. It organizes its operations in two groups:
Performance Surfactants: Over 45 product grades of performance surfactants including anionic surfactants and non-ionic surfactants
Speciality Care Products: The group comprises over 155 product grades, and includes amphoteric surfactants, cationic surfactants, UV filters, preservatives, preservative blends and surfactant blends, speciality ingredients such as mild surfactants, syndet and transparent bathing bars and proteins, fatty alkanolamides and fatty acid esters, and other care products.
Galaxy Surfactants IPO: Strong financial performance to be highlight
Galaxy Surfactants commenced operations as a local supplier to FMCG companies in India but gradually moved up the value chain and this reflects very well in the fact that a total of 47 patents have been granted to the company since 2002. Applications for another 38 patents are pending with relevant authorities. This business to business (B2B) player counts several big FMCG companies among clients. This includes names such as Cavinkare Private Limited, Colgate-Palmolive (India) Limited, Dabur India Limited, Henkel, Himalaya, L’ORÉAL, Procter & Gamble (P&G), Reckitt Benckiser and Unilever.
The company operates seven manufacturing plants globally, including two overseas in Egypt and USA. Galaxy Surfactants posted revenue of INR2,171.7 crore (INR21.7 billion) in the year ended 31 March 2017, marking a growth of 20% from FY2016. According to the draft prospectus, the company’s earnings improved 42.5% to INR146.3 crore during the latest FY.
