Balaji Specialty Chemicals has filed preliminary with capital markets regulator SEBI to raise funds through an initial public offering (IPO).
IPO Incorporating a fresh issue of equity shares of up to 250 crore and offer-for-sale (OFS) up to 2,60,00,000 equity shares by promoters and promoter group entities, as per the draft Red Herring Prospectus (DRHP).
worth the income 68 crore from the fresh issue will be used to repay the loan, and 119.5 crore will be spent on working capital requirements, apart from general corporate purposes.
The company may consider pre-IPO placements: 50 crores. If such appointment is made, the size of the new issue will be reduced.
Incorporated in 2010, Solapur-based Balaji Specialty Chemicals manufactures niche chemicals that are used in various end-use industries, such as specialty chemicals, agrochemicals and pharmaceuticals.
Its major clients include Nanjing Union Chemical Company Limited, Korea India Limited, UPL Limited, Dr Reddy’s Laboratories Limited and Aarti Drugs Limited. From FY20 to FY22, its subscriber base grew from 45 to 182 customers.
It had a total installed production capacity of 30,000 MTPA as on March 31, 2022.
The company’s revenue from operations increased 174.40 crore in FY 2021 to 514.28 crore in FY22. it made a profit 108.95 crore in FY22 as against 10.40 crore a year ago.
HDFC Bank and JM Financial are the book-running lead managers of the issue. The equity shares of the company will be listed on BSE and NSE.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.