Balaji Speciality Chemicals files IPO papers with SEBI

IPO plans of Balaji Speciality Chemicals

Balaji Speciality Chemicals, a Solapur-based niche chemicals manufacturer, has filed IPO papers with SEBI. The chemicals produced by the company are used in various industries like pharmaceuticals, agrochemicals and speciality chemicals. Some of the main customers of the company are Aarti Drugs Limited, Korea India Limited, Nanjing Union Chemical Company Limited, Dr Reddy's Laboratories Limited, etc. 

The customer base of the company has increased from 45 in FY20 to 182 in FY22. The total installed capacity of the firm is 30,000 MTPA as of the end of the last financial year. The company's revenue from operations has increased to Rs 514.28 crores in FY 22 from Rs 174.4 crores in FY21. The profit of the company increased 10-fold in the same time frame from Rs 10.4 crores to Rs 108.95 crores. The parent company, Balaji Amines Ltd, was founded in 1988. The 5-year return of the stock is 931%. The market capitalization of the parent company is Rs 11,000 crores. 

Related:  All about IPOs in India

IPO plans of Balaji Speciality Chemicals

The company has plans to raise Rs 250 crores of fresh money via the IPO, and the offer for sale by the promoters will be an additional 2.6 crore shares. The money raised will be used to repay debt (Rs 68 crores), to meet working capital requirements (Rs 119.5 crores) and to meet general corporate purposes requirements (Remaining Amount).

The company is planning to raise Rs 50 crores via pre-IPO placement, and this will reduce the issue size. The company has filed the DRHP with SEBI, and the IPO is expected soon. The chemical industry stocks have had a dream run in the last couple of years due to the movement of supply chains out of China. If the parent company's performance is seen, this looks like a good IPO. In the fast-growing speciality chemicals industry, this IPO will be watched keenly by the investors.

Related: Is your IPO rightly valued?

Balaji Speciality Chemicals IPO Details| Invesotr’s guide