Solapur-based speciality chemicals company, Balaji Speciality Chemicals, sole manufacturer in India of niche chemicals such as Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines and Amino Ethyl Piperazine, using the Monoethanol Amine ("MEA") process has received final observation letter from markets regulator, Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering (IPO).
The public issue consists of a fresh issue of equity shares worth up to Rs 250 crore and an offer-for-sale (OFS) up to 26,000,000 equity shares by the Promoter and selling shareholders.
The utilization of funds raised via fresh issue would be used to repay 68 crs of its certain outstanding borrowings and use Rs 119.5 crs to fund its working capital requirements besides general corporate purposes. The company may consider a pre- ipo placement aggregating to 50 cr.
Incorporated in 2010, Balaji Speciality Chemicals Limited (BSCL) subsidiary of Balaji Amines Ltd is the sole manufacturer in India of niche chemicals such as Ethylene Diamine (EDA), Piperazine Anhydrous (PIP), Diethylenetriamine (DETA), Aminoethyl ethanolamine (AEEA) and Aminoethyl Piperazine (AEP), using the Monoethanol Amine (MEA) process. The chemicals manufactured by BSCL are an import substitute and are used in various end-use industries such as speciality chemicals, agrochemicals, and pharmaceuticals. Its experienced and professional team is led by Rajeshwar Reddy Nomula.
Its key customers include Nanjing Union Chemical Company Limited, Korea India Limited, UPL Limited, Dr. Reddy's Laboratories Limited, and Aarti Drugs Limited. From FY20 to FY22 its customer base grew from 45 to 182 customers. Balaji Specialty plans to introduce new products, such as ethylenediamine tetra acetic acid ("EDTA") and other derivatives of EDTA with varied applications across industries besides continuing to develop catalysts to improve process and cost efficiencies in its operations.
BSCLs revenue from operations increased by 194.89% from Rs 174.40 crore in Fiscal 2021 to Rs 514.28 crore in Fiscal 2022 primarily due to the increase in sale of Ethylenediamine. It clocked a profit of Rs 108.95 crore in the financial year FY22 against Rs 10.40 crore from the previous year.
HDFC Bank Limited and JM Financial Limited are the book running lead managers and Link Intime India Private Limited are the registrar to the issue.