Balaji Speciality Chemicals files papers with Sebi to raise funds via IPO

Balaji Speciality Chemicals has filed preliminary with capital markets regulator Sebi to raise funds through an initial public offering (IPO).

The IPO consists of a fresh issue of equity shares worth up to Rs 250 crore and an offer-for-sale (OFS) of up to 2,60,00,000 equity shares by promoters and promoter group entities, according to the draft red herring prospectus (DRHP).

Proceeds worth Rs 68 crore from the fresh issue will be used to repay debt, and Rs 119.5 crore will be spent on working capital requirements, besides general corporate purposes.

The company may consider a pre-IPO placement aggregating to Rs 50 crore. If such placement is undertaken, the size of the fresh issue will be reduced.

Incorporated in 2010, Solapur-based Balaji Speciality Chemicals manufactures niche chemicals, which are used in various end-use industries, such as speciality chemicals, agrochemicals and pharmaceuticals.

Its key customers include Nanjing Union Chemical Company Limited, Korea India Limit