Balaji Specialty Chemicals has filed a preliminary application with capital markets regulator Sebi to raise funds through an initial public offering (IPO).
The IPO consists of a fresh issue of shares worth up to Rs 250 crore and an offer-for-sale (OFS) of up to 2,60,00,000 shares by promoters and promoter group entities as per the draft red herring prospectus (DRHP).
Proceeds worth Rs 68 crore from the fresh issue will be used to repay debt and Rs 119.5 crore will be used for working capital requirements, besides general corporate purposes.
The company can consider a placement before the IPO of DKK 50 billion. Rs. If such placement is made, the size of the new edition will be reduced.
Incorporated in 2010, Solapur-based Balaji Specialty Chemicals manufactures niche chemicals used in various end-use industries such as specialty chemicals, agrochemicals and pharmaceuticals.
Its key 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 customer base grew from 45 to 182 customers.
It had a total installed production capacity of 30,000 MTPA per 31 March 2022.
The company’s operating income increased from Rs 174.40 crore in FY21 to Rs 514.28 crore in FY22. It posted a profit of Rs 108.95 crore in FY22 against Rs 10.40 crore a year ago.
HDFC Bank and JM Financial are the book-runners for the issue. The company’s shares will be listed on BSE and NSE.