The company is planning to raise Rs 250 crore via the issuance of fresh equity shares, whereas existing shareholders will offload 2.6 crore equity shares from their holding. Balaji Amines will not participate in the proposed offer.
The company, which filed its DRHP on Wednesday, August 10, has received approval from its board of directors to launch an IPO in the month of June.
The company’s DRHP added that it may consider a preferential issue or a pre-IPO placement of up to Rs 50 crore before launching the IPO, in consultation with its book-running lead managers. In such a case, the fresh issue size would be reduced.
Net proceeds from the fresh issue will be utilized towards the repayment of the debt, working capital requirements and general corporate purposes. Proceeds from OFS will go to the respective shareholders.
Incorporated in 2010, Solapur-based Balaji Speciality Chemicals manufactures niche chemicals, which are used in various end-use industries, such as speciality chemicals, agrochemicals and pharmaceuticals.
Balaji Speciality Chemicals manufactures niche chemicals such as ethylene diamine, piperazine anhydrous, diethylenetriamine, aminoethyl ethanolamine and aminoethyl piperazine, using the monoethanol amine process.
From FY20 to FY22, its customer base grew from 45 to 182 customers, including key names like UPL, Dr Reddy’s Labs,
and more. It had a total installed production capacity of 30,000 MTPA as of March 31, 2022.
For the financial year ended on March 31, 2022, the company had reported a net profit of Rs 108.95 crore with an operational revenue of Rs 514.28 crore.
The company has reserved 75 per cent of shares for qualified institutional buyers, whereas non-institutional investors would get 15 per cent shares. The remaining 10 per cent of equity will be allocated to the retail bidders.
The company has appointed
and Services as the book running lead managers, whereas Link Intime India has been appointed as the registrar to the issue.