Balaji Specialty Chemicals IPO

Sebi approved Balaji Specialty Chemicals IPO – do you invest? Know why.

Balaji Specialty Chemicals IPO
Balaji Specialty Chemicals IPO

Balaji Specialty Chemicals IPO – the company

Balaji Specialty 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 Specialty Chemicals Limited’ is in Balaji Towers No 9/1A/1, Hotgi Road, Aasara Chowk, Solapur-413 224, Maharashtra, India.

Read the complete company insights here – “Balaji Specialty Chemicals Limited” – Key products, finance, management team, strategic insights”

Balaji Specialty Chemicals Limited founder leaders

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.

Read the complete leadership profile here – “Balaji Specialty Chemicals Limited” Financial analysis

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. 

Read the complete leadership profile here – “Balaji Specialty Chemicals Limited” Financial analysis

Balaji Specialty Chemicals IPO pricing and issue size

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 Specialty Chemicals IPO

The company will not receive any amount from the offer for sale. However, Balaji Specialty 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.

Related Reading on company insights Prasol Chemicals Limited, Concord Biotech Limited, Sah Polymers Company

Why Invest?

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 Specialty Chemicals LimitedIPO details
Subscription DatesComing soon
Anchor Investor Bidding DateComing soon
BID/OFFER Opens OnComing soon
BID/OFFER Closes OnComing soon
Price BandComing soon
Fresh IssueINR 250 Crores
Offer for sale26,000,000 Equity Shares
Equity Shares outstanding before the Issue200,000,000 Equity Shares
Minimum bid (lot size)Coming soon
Face ValueINR 2 Per Equity Share
Listed onBSE & NSE

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