Balaji Speciality Chemical is coming up with an IPO which includes both fresh issue and offer for sale.The existing shareholders are going to sell their 2.6 crore shares in the offer for sale segment. The fresh issue is for INR 250 crores. The funds raised are intended to be used for repayment of borrowings and also to meet working capital requirements.
Balaji Speciality Chemicals IPO – Important Details
| Balaji Speciality Chemicals IPO Date | NA |
| Balaji Speciality Chemicals IPO Listing Date | NA |
| Balaji Speciality Chemicals IPO Price | NA |
| Balaji Speciality Chemicals IPO Lot Size | NA |
| Balaji Speciality Chemicals IPO Total Issue Size | NA |
| Balaji Speciality Chemicals IPO Basis of Allotment | NA |
| Balaji Speciality Chemicals IPO Initiation of Refunds | NA |
| Balaji Speciality Chemicals IPO Credit of Shares to Demat | NA |
| Balaji Speciality Chemicals IPO Issue Type | Book Built Issue IPO |
| Balaji Speciality Chemicals IPO Listing At | BSE, NSE |
Balaji Speciality Chemicals IPO – Company Profile
The company is a 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. The chemicals manufactured by the company are substitutes to the imported chemicals and are used in various industries.
The company is a subsidiary of Balaji Amines Limited, one of the leading manufacturers of aliphatic amines in India.
Commencing their production activities in June 2019, the company has a manufacturing facility in Solapur, Maharashtra. The company catered the needs of 182 customers in the fiscal year 2022. Few of their key customers include Nanjing Union Chemical Company Limited, Korea India Limited, UPL Limited, Dr. Reddy’s Laboratories Limited and Aarti Dugs Limited.
Balaji Speciality Chemicals IPO Objective
With the capital raised, the company aims to:
- Repayment or pre-payment of certain secured borrowing: The company had entered into financing arrangements with various banks. Out of the said arrangement, INR 130.44 crores is outstanding as on June 2022 and the company intends to use the raised funds to the extent of INR 68 crores to repay the borrowing.
- Funding working-capital requirement: Majority of the working capital requirements of the company are met by internal accruals and working capital facilities availed through banks. To ensure uninterrupted supply, the company believes that they will be required to maintain higher levels of inventory. Additionally, the COVID-19 pandemic and geo-political tensions led to supply chain disruptions that may also result in an increase in our working capital requirements.Hence the company intends to utilize INR 119.5 crores from the funds raised towards working capital requirement.
- General corporate purpose: The company plans to deploy the balance funds towards general corporate purpose which is not limited to meeting expenses incurred in ordinary course of business such as strategic initiatives including advancement of information technology, meeting future branch and business expansion,etc.
Balaji Speciality Chemicals IPO Risks And Challenges
Investing in IPOs comes with its own set of risks and challenges. For Balaji Speciality Chemicals, these are some of the major risks and challenges:
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- Dependency on fewer customers: As on 31st March 2022, almost 74% of the revenue comes from top 10 customers. The company does not enter into long term contracts with our customers, and any loss of one or more of our key customers, or a reduction in their demand for products, could adversely affect the business, results of operations, financial condition and cash flows.
- Import Restrictions: Almost 60% of the total raw material of the company in the fiscal year 2022 relates to import. Any kind of import or trade restrictions will disrupt the operation cycle of the company.
Balaji Speciality Chemicals IPO Peer Comparison
| Company | Standalone/Consolidated | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Balaji Speciality Chemicals Limited | Standalone | 5,160.42 | 2 | NA | 5.45 | 5.45 | 81.91% | 9.37 |
| Clean Science and Technology Limited | Consolidated | 7,148.59 | 1 | 74.81 | 21.51 | 21.51 | 34.93% | 72.35 |
| Alkyl Amines Chemicals Limited | Standalone | 15,569.75 | 2 | 69.84 | 44.04 | 43.95 | 25.24% | 193.80 |
| Tatva Chintan Pharma Chem Limited | Consolidated | 4,425.41 | 10 | 52.61 | 44.59 | 44.59 | 30.01% | 213.44 |
| Neogen Chemicals Limited | Consolidated | 4,883.20 | 10 | 76.02 | 18.70 | 18.70 | 14.34% | 176.12 |
Balaji Speciality Chemicals IPO Financial Information
| Particular | As at 31 March 2020 | As at 31 March 2021 | As at 31 March 2022 |
| Revenue (₹ in Million) | 538.81 | 1,744.01 | 5,142.80 |
| Equity (₹ in Million) | 681.33 | 785.32 | 1,874.79 |
| Expenses (₹ in Million) | 764.51 | 1,606.34 | 3,619.88 |
| Profit and Loss After Tax (₹ in Million) | (158.70) | 103.95 | 1,089.45 |
| RoNW (%) | (20.86%) | 14.18% | 81.91% |
| Diluted EPS only (₹) | (0.79) | 0.52 | 5.45 |
| NAV per Equity Share (₹) | 9.37 | 3.93 | 3.41 |
| Total Assets (in million) | 3,042.44 | 3,030.44 | 4,016.10 |
| Total Liabilities (in million) | 2,361.11 | 2,245.12 | 2,141.31 |
Balaji Speciality Chemicals IPO – Industry & Market Potential
The global market for our portfolio of Ethylenediamine, Piperazine, Diethylenetriamine, Amino Ethyl Ethanol Amines and Amino Ethyl Piperazine is expected to grow from 1,078 kilo tons (“KT”) in Fiscal 2022 to 1,570 KT by Fiscal 2028, growing at a CAGR of 6.5%. The global market for these products is presently valued at US$ 2.2 billion and is expected to grow at 6.9% CAGR to US$ 3.3 to 3.4 billion by Fiscal 2028.
In Fiscal 2022, India imported 31.8 KT of Ethylenediamine, 1.1 KT of Piperazine (Anhydrous), 4.4 KT of Diethylenetriamine, 0.2 KT of Amino Ethyl Ethanol Amines and 0.3 KT of Amino Ethyl Piperazine.
Given the company’s experience and the experience of their Corporate Promoter, BAL, in the amines industry, and technical know-how of complex chemistries required for the manufacture of niche chemicals. The company believes to expand their market share and increase its profitability.
Balaji Speciality Chemicals IPO – Type of Offer
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 250 Crore. This fund will fuel new projects and repay some of the company’s outstanding debts and meet the future working capital requirement.
- Offer For Sale (OFS): Existing shareholders, including promoters and early investors, will sell a portion of their stake in the company, intending to sell 2.6 crore shares . The price range and the net amount of OFS have not been disclosed as of now.
Balaji Speciality Chemicals IPO Offer Size
Balaji Speciality Chemical is coming up with an IPO which includes both fresh issue and offer for sale.The existing shareholders are going to sell their 2.6 crore shares in the offer for sale segment. The fresh issue is for INR 250 crores. The funds raised are intended to be used for repayment of borrowings and also to meet working capital requirements.
Balaji Speciality Chemicals IPO Allotment Structure
The IPO allotment structure for Balaji Speciality Chemicals is planned as follows:
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 75% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lahks.
- Retail Individual Investors (RII): The remaining 10% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lahks.
The percentage Balaji Amines Reservation Portion and Employee Reservation Portion is not yet disclosed by the company.
How to apply for a Balaji Speciality Chemicals IPO?
To apply for the Balaji Speciality Chemicals IPO through Alice Blue, you would typically follow these steps:
- Click the link to log in to the IPO console.
- Select the IPO you wish to apply for from the list of open issues.
- Once you have selected your preferred IPO, you can view all the details such as the issue open date, closing date, issue size, price, market lots, etc.
- Enter the UPI ID linked to your personal bank account. The application may be subject to rejection if the applicant’s identity differs from the individual linked to the bank account used for the application.
- When placing bids, only quantities that are multiples of the lot size are allowed. If you want to apply at the cut-off price, simply click the text box next to the ‘cut-off’ price. If you wish to place a bid at a different price, enter the desired price in the ‘Price’ field.
- After completing all the steps, read the declaration and click ‘Submit’.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Balaji Speciality Chemicals IPO Allotment Status on Alice Blue?
To verify the IPO allotment status for your PAN number: Once your allotment is confirmed, you will receive a confirmation email from the respective RTA. Simultaneously, you will also receive an email confirmation from Alice Blue if you applied for the IPO through the Alice Blue portal.
Visit the Link Intime page to determine the status of the allotted IPO.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the India Balaji Speciality Chemicals IPO:
- Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the India Balaji Speciality Chemicals IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
- NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Balaji Speciality Chemicals IPO Offer Registrar
The registrar for the Balaji Speciality Chemicals IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Link Intime India Private Limited
C-101, 1st Floor, 247 Park
L.B.S. Marg, Vikhroli West
Mumbai – 400 083, Maharashtra
Phone: 91 22 4918 6200
E-mail: balajispeciality.ipo@linkintime.co.in
Website: www.linkintime.co.in
Balaji Speciality Chemicals IPO FAQs
1. What is the allotment date of the Balaji Speciality Chemicals IPO?
The details of the allotment date is not yet disclosed by the company.
2. What is the price band of Balaji Speciality Chemicals IPO?
The details of the price band is not yet disclosed by the company.
3. What is the size of the Balaji Speciality Chemicals IPO?
Balaji Speciality Chemical is coming up with an IPO which includes both fresh issue and offer for sale.The existing shareholders are going to sell their 2.6 crore shares in the offer for sale segment. The fresh issue is for INR 250 crores. The funds raised are intended to be used for repayment of borrowings and also to meet working capital requirements.
4. What is the debt of Balaji Speciality Chemicals?
As on 30th June 2022, the company owes INR 130.44 crores.
5. What is the listing date of the Balaji Speciality Chemicals IPO?
The details of the listing date are not yet disclosed by the company.