Dorf Ketal Defers IPO Plans Amidst Italmatch Acquisition Bid
Gujarat-based chemicals maker Dorf Ketal has postponed its IPO to secure up to ₹2,000 crore in pre-IPO funding and debt. These funds are intended to finance the proposed $1.6-1.8 billion acquisition of Italmatch Chemicals SpA, aiming to diversify Dorf Ketal's product portfolio with water treatment chemicals and expand its manufacturing footprint in the European Union. The public listing, previously approved by Sebi, is on hold until the Italmatch deal is finalized.
Dorf Ketal Chemicals India Ltd. has reportedly deferred its initial public offering (IPO), which had received approval from the Securities and Exchange Board of India (Sebi) for a ₹5,000 crore offering in May 2025. This strategic postponement allows the Gujarat-based company to focus on assembling a significant financing package, comprising a pre-IPO equity funding round expected to raise up to ₹2,000 crore, along with substantial debt financing from private credit funds and banks. The primary purpose of this capital raise is to fund the proposed acquisition of Italmatch Chemicals SpA, a specialty chemicals group backed by private equity firm Bain Capital, with the transaction value estimated at $1.6-1.8 billion. The acquisition of Italmatch, headquartered in Genoa, Italy, and specializing in chemical additives for various sectors including water treatment, oil and gas, lubricants, and plastics, is critical for Dorf Ketal. It will facilitate the diversification of Dorf Ketal's product portfolio by adding water treatment chemicals to its existing hydrocarbon offerings and expanding its manufacturing presence within the European Union. While deliberations on the equity funding round's details are ongoing, industry experts suggest that delaying the IPO could be a beneficial move, allowing Dorf Ketal to prioritize and integrate the acquired business before engaging public market investors, potentially also leading to a revised IPO structure. Dorf Ketal, founded in 1992, reported revenues of ₹6,130 crore in the fiscal year ended March 2025 and has a history of expanding operations through strategic acquisitions.
