Balaji Speciality Chemicals IPO – business overview
Balaji Speciality chemicals IPO got SEBI approval for INR 250 crores of fresh issue and offer for sale (OFS) up to 26,000,000 equity shares by the Promoter and selling shareholders. The registered and corporate office of ‘Balaji Speciality Chemicals Limited’ is in Balaji Towers No 9/1A/1, Hotgi Road, Aasara Chowk, Solapur-413 224, Maharashtra, India. Balaji Speciality Chemicals is the latest IPO in the market in India.
- ‘Balaji Speciality Chemicals Limited is one of the important players in the speciality chemical industry in India.
- One of the subsidiaries of Balaji Amines Limited (BAL) that manufacturer of aliphatic amines in India.
- Balaji Amines group is an integrated specialty chemicals manufacturing company.
We also share the complete company insights for Investment in a separate post. read here – “Balaji Speciality Chemicals Limited” – Key products, finance, management team, strategic insights”
Balaji Specialty Chemicals IPO Review – Company Promoters
Mr. A. Prathap Reddy is the promoter, chairman, and whole-time director of the company. Mr. N. Rajeshwar Reddy is the promoter and Managing Director of the Company.
Balaji Specialty Chemicals Turnover
The company is a fasted growing company in terms of revenue. The revenue from operations has grown from INR 538.81 million in FY 2020 to INR 1,744.01 million in FY 2021 and INR 5,142.80 million in FY 2022. The revenue grew over 10 times during the fiscal years between 2020 to 2022.
Balaji Specialty Chemicals IPO Review
got SEBI approval for INR 250 crores of fresh issue and offer for sale (OFS) up to 26,000,000 equity shares by the Promoter and selling shareholders at a face value of INR 2 each. Five promoters of the company are selling approximately 44% of their stakes in the company within the offer for sale.
Book Running Lead Managers and registrar of this IPO are
- JM Financial Limited
- HDFC Bank Limited
- The registrar for this IPO is LINK INTIME INDIA PRIVATE LIMITED.
Share Reservations among QIBS (Qualified Institutional Buyers), NIBS (Non-Institutional Bidders), AND RIBS (Retail Individual Bidders)
- No more than 75% of the Offer is available for the QIB portion
- The company may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis
- 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only
- No more than 15% of the Offer will be allocated to NIBs
- No more than 10% of the Offer will be allocated to RIBs
Utilization of Net Proceeds from Balaji Speciality Chemicals IPO
The company will not receive any amount from the offer for sale. However, Balaji Speciality Chemicals Limited is proposing below to utilize the net proceeds from the fresh issue of the IPO.
- The company is planning to repay/ prepay in full or part of certain borrowings. INR 68 Crores is allocated to this purpose. The company had total outstanding borrowings of INR 130.5 Crores, as of June 30, 2022.
- To fund the working capital requirements of the Company. The company is planning to increase manufacturing capacities, continue to diversify its product portfolio, and continue to increase its global footprint. INR 119.5 Crores is allocated to meet this requirement.
- The rest of the amount will be allocated to meet general corporate purposes.
Should I Invest in Balaji Speciality Chemicals IPO?
Balaji Specialty Chemical Limited has significantly expanded its business and scale of operations since incorporation. The company is also planning to invest a majority portion of the fresh issue in expanding manufacturing and product capabilities and diversifying specialty chemical players with a global footprint. Again, the opportunities after China’s slowdown will benefit the company’s future growth prospects.
In addition, the company is also proposing to introduce new products, such as ethylenediamine tetraacetic acid (“EDTA”) and other derivatives of EDTA with varied applications across industries. All these factors will help the top line of the company. This is one of the best parental and fundamentally strong companies to invest in. One can wait for the price of the equity share to get the valuation and think of investing in the company.
Balaji Speciality Chemicals IPO Details
| Balaji Speciality Chemicals IPO Details | Balaji Speciality Chemicals IPO Dates, price, other details |
|---|---|
| Balaji Speciality chemicals IPO Subscription date | Aug 18, 2023 to Aug 22, 2023 |
| Balaji Speciality chemicals IPO Allotment date | 25 August 2023 |
| Refunds Initiation date | 28 August 2023 |
| Balaji Speciality chemicals IPO listing date | 30 August 2023 |
| Price Band | Coming soon |
| Fresh Issue | ₹250.00 Cr |
| Offer for sale | 26,000,000 Equity Shares |
| Equity Shares outstanding before the Issue | 200,000,000 Equity Shares |
| Minimum bid (lot size) | Coming soon |
| Balaji Speciality Chemicals share Face Value | ₹2 Per Equity Share |
| Balaji Speciality Chemicals share Listed on | BSE & NSE |
Balaji Speciality chemicals IPO GMP
| Date | Balaji Speciality chemicals IPO GMP | IPO Price |
| 07-08-2023 | ₹55 | |
Balaji speciality chemicals ipo gmp
Grey Market is an unregulated market where the upcoming IPO applications and IPO shares trade before listing of the stock. An investor may get an idea of the IPO GMP just to understand the post listing position of the IPO share. Thia may be used to estimate the listing gain on the IPO share. GMP or Grey Market Premium adding to issue price gives the estimated listing price of the IPO share or the under current price of that IPO. This should not be treated as a criteria to value or decide a company for the IPO to invest in.
The Balaji speciality chemicals IPO GMP is Rs 55 and the Balaji speciality chemicals IPO price is Rs –. That reflects the Balaji speciality chemicals IPO price share is likely to be listed at Rs — per equity share. However, Balaji speciality chemicals ipo gmp is just an indicator of the price, the actual price may vary on the listing day.
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