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Balaji Speciality Chemicals has filed its Draft Red Herring Prospectus with the markets regulator, Securities and Exchange Board of India (SEBI), to raise ₹250 crore through an initial public offering.
Offer-for-sale
The public issue consists of a fresh issue of equity shares worth up to ₹250 crore and an offer-for-sale up to 2.6 crore equity shares by the promoter and selling shareholders.
The company will repay ₹68 crore outstanding borrowings and use ₹119 crore to fund its working capital requirements besides general corporate purposes. The company may consider a pre-IPO placement of ₹50 crore.
Balaji Amines subsidiary
Solapur-based Balaji Speciality Chemicals (BSCL) is a subsidiary of Balaji Amines — the lone manufacturer in India to produce niche chemicals such as Ethylene Diamine, Piperazine Anhydrous and Diethylenetriamine. The chemicals manufactured by BSCL are import substitutes and are used in various end-use industries such as speciality chemicals, agro-chemicals, and pharmaceuticals. Its experienced and professional team is led by Rajeshwar Reddy Nomula.
Its key customers include Nanjing Union Chemical, Korea, andUPL, Dr Reddy’s Labs and Aarti Drugs in India.
The company’s revenue from operations increased by 195 per cent to ₹514 crore last fiscal against ₹174 crore logged in FY21 primarily due to the increase in sale of Ethylenediamine. It clocked a profit of ₹109 crore in FY22 against ₹10 crore in the previous year.
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