Balaji Chemicals IPO Synopsis
Balaji Speciality Chemicals Limited IPO is all set to open. Balaji Speciality Chemicals is involved in the business of manufacturing ethylamine, methylamines, derivatives of specialty chemicals, and pharma excipients. The IPO includes a fresh issue of ₹250 cr and an Offer-for-Sale (OFS) of 26,000,000 equity shares. The price band and lot size are yet to be decided.
HDFC Bank Limited and JM Financial Limited are the book-running lead managers for this IPO, while Link Intime India Private Limited is the registrar.
Objectives of Balaji Speciality Chemicals IPO
Balaji Speciality Chemicals Limited plans to utilize the raised capital from IPO to:
● The prepayment or repayment of either a full amount or a part of outstanding debt
● Fund working capital requirements
● Fund general corporate purposes
About Balaji Speciality Chemicals
Established in 2010, Balaji Speciality Chemicals Limited is a prominent manufacturer of specialized chemicals like Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines, and Amino Ethyl Piperazine. These chemicals are produced using the Monoethanol Amine (“MEA”) process and serve as domestic alternatives to imported substances in diverse industries such as specialty chemicals, agrochemicals, and pharmaceuticals. The company’s production hub is situated in Solapur, Maharashtra and serves as the manufacturing epicentre for all its product lines.
Balaji Speciality Chemicals has a client base comprising 182 customers, which include manufacturers of specialty chemicals, agrochemicals, and pharmaceuticals, as well as distributors who further distribute these products within these industries. Some notable clientele include Nanjing Union Chemical Company Limited, Korea India Limited, UPL Limited, Dr. Reddy’s Laboratories Limited, and Aarti Drugs Limited.
Balaji Speciality Chemicals operates as a subsidiary of Balaji Amines Limited (“BAL”), a leading figure in the Indian aliphatic amines manufacturing sector.
Peer Comparison
● Clean Science and Technology Limited
● Tatva Chintan Pharma Chem Limited
● Alkyl Amines Chemicals Limited
● Neogen Chemicals Limited
Balaji Speciality Chemicals Financial Status
Profit and Loss
Balance Sheet
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Revenue | 514.28 | 174.40 | 53.88 |
| EBITDA | 180.62 | 43.83 | 0.43 |
| PAT | 108.94 | 10.39 | -15.87 |
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Total Assets | 401.61 | 303.04 | 304.24 |
| Share Capital | 40.00 | 40.00 | 40.00 |
| Total Liabilities | 214.13 | 224.51 | 236.11 |
| Particulars (in Rs. Crores) | FY22 | FY21 | FY20 |
|---|---|---|---|
| Net cash generated from / (used in) operating activities | 54.21 | 18.43 | -12.22 |
| Net cash from / (used in) investing activities | -0.26 | 0.10 | -9.69 |
| Net cash flow from / (used in) financing activities | -52.50 | -18.06 | 23.37 |
| Net increase (decrease) in cash and cash equivalents | 1.457 | 0.46 | 1.456 |
Balaji Chemicals IPO Key Points
-
Strengths
1. The company is the sole producer of specialized chemicals within India, for compounds like Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines, and Amino Ethyl Piperazine.
2. Well-positioned in the industry.
3. There is no effective substitute for the company’s products in the end-use industries.
4. National and global client portfolio.
5. Capacity to utilize research and development proficiency along with strategic direction provided by Balaji Amines Limited.
6. Improvement in market share and profitability.
-
Risks
1. No long-term contracts with customers or suppliers.
2. Limited operating history with loss reported in the past.
3. Any restrictions on import materials or increases in shipping costs can affect its profitability.
4. The company’s share of selling Ethylenediamine is at 67%, thus, any change in its demand can impact its bottom line.
5. Subject to strict regulations by the government.
How to apply for IPO?
-
Login to your 5paisa account and select the issue in the
current IPO section -
Enter the number of lots and price at which you wish to
apply for -
Enter your UPI ID and click on submit. With this, your
bid will be placed with the exchange -
You will receive a mandate notification to block funds in
your UPI app -
Approve the mandate request on your UPI and funds
will be blocked
Open account in 5 minutes
Be a part of the 5paisa community now with 10 million mobile app users
Contact Details of Balaji Speciality Chemicals IPO
Contact Information
Balaji Speciality Chemicals Limited
2 nd Floor, Balaji Towers No. 9/1A/1,
Hotgi Road, Aasara Chowk,
Solapur - 413224
Phone: +91 217 2606 006
Email: investors@balajispeciali
Website: http://www.balajispecialitychemicals.com/
Balaji Speciality Chemicals IPO Register
Link Intime India Private Ltd
Phone: +91-22-4918 6270
Email: balajispeciality.ipo@linkintime.co.in
Website: https://linkintime.co.in/mipo/ipoallotment.html
Balaji Speciality Chemicals IPO Lead Manager
Hdfc Bank Limited
Jm Financial Limited
IPO News
JNK India Makes Bumper Debut, Lists 49.64% Above IPO Price
JNK India IPO opens smartly higher JNK India IPO had a relatively strong listing on
IPO Blog
JNK India IPO Allotment Status
About the JNK India IPO The stock of JNK India Ltd has a face value of ₹2 per share and the price band for the book building IPO has been set in the range of ₹395 to ₹415 per share. The IPO of JNK India Ltd is a combination of fresh issue and an offer for sale. The fresh issue brings in fresh funds into the company, but is also EPS and equity dilutive. On the other hand, ...
IPO Guide
IPO Cycle
The IPO cycle, also referred to as Initial Public Offering Cycle, allows private companies to go public and offer the company's shares to the general public for the first time. It ...