Read on the application
Balaji Specialty Chemicals Limited, a subsidiary of Balaji Amines Limited, has decided to withdraw the draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI). Let us tell you that on August 10, 2022, Balaji Specialty Chemicals filed its DRHP with SEBI in connection with the proposed IPO of its equity shares. There will be a fresh issue of equity shares up to ₹250 crore. Also includes an offer for sale of up to 26,000,000 equity shares by certain existing shareholders.
What was the plan: The proceeds of the fresh issue of ₹ 68 crore were used to repay debt apart from for general corporate reasons. Additionally, ₹119.5 crore was planned to be used for working capital requirements. The company was considering a pre-IPO placement of ₹50 crore.
The company came into existence in 2010: Solapur-based Balaji Specialty Chemicals, incorporated in the year 2010, manufactures specialty chemicals used in agrochemicals and pharmaceuticals. Among its major clients are Nanjing Union Chemical Company Limited, Korea India Limited, UPL Limited, Dr. Reddy’s Laboratories Limited and Aarti Drugs Limited. It has a total installed production capacity of 30,000 MTPA as on March 31, 2022. HDFC Bank and JM Financial were the book-running lead managers of the issue.