Balaji Speciality Chemicals IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Jul 10, 2023Balaji Speciality Chemicals Limited has submitted the Draft Red Herring Prospectus to the capital market regulator, the Securities and Exchange Board of India, to raise money from the public through an initial public offering (IPO).
The IPO is a combination of a Fresh Issue and an Offer for Sale where Rs. 250 crores will be raised through a fresh issue and with the sale of 2,60,00,000 Equity Shares to promoters and promoter groups.
Balaji Speciality Chemicals IPO will be a mainline IPO, and the shares will be listed on BSE and NSE.
In this Balaji Speciality Chemicals IPO Review, we take a brief discussion on this upcoming IPO and all its aspects.
| Face Value | Rs 2 |
| Price Band | Rs.X to Rs.X |
| Listing At | BSE, NSE |
| Min. Order Quantity | X Shares |
| Listing Date | Not Disclosed |
| Offer for Sale | Rs. crores |
| Fresh Issue | Rs. 250 crores |
| IPO Size | Rs. crores |
| Tick Size | 1 |
Balaji Speciality Chemicals IPO Overview
Balaji Speciality Chemicals IPO comprises a Fresh Issue of Equity shares aggregating up to Rs. 250 crores and an Offer for Sale aggregating up to 2,60,00,000 Equity Shares.
Promoters of the company – Ande Prathap Reddy, Ande Srinivas Reddy, Ram Reddy Dundurapu, Rajeshwar Reddy Nomula, and Gaddam Hemanth Reddy, along with some Promoter Group, will be offloading their shareholding in the company.
The company may consider a pre-IPO placement of up to Rs. 50 crore, and if such placement is successful, the IPO size will be reduced to that extent.
Balaji Speciality Chemicals IPO Important Dates
| Events | Date |
| IPO Opening Date | Not Disclosed |
| IPO Closing Date | Not Disclosed |
| Basis of Allotment Finalization | Not Disclosed |
| Refunds Initiation | Not Disclosed |
| Credit of Shares to Demat Account | Not Disclosed |
| Share Listing Date | Not Disclosed |
Balaji Speciality Chemicals filed its DRHP papers with SEBI recently on 10th August and now will take the IPO process further after approval of the IPO.
Once the DRHP is approved, the company will determine the Balaji Speciality Chemicals IPO Dates, file further documents, and proceed toward the IPO. IPO Dates have a strong bearing on the success of the IPO. Therefore, the dates are decided after due consideration of all the factors affecting the market and the IPO.
Balaji Speciality Chemicals IPO Price, Size, Share Offerings
| Face Value | Rs.2 |
| Price Band | Rs.X to Rs.X |
| Offer for Sale | Rs.X Crore |
| Fresh Issue | Rs.250 Crore |
| IPO Size | Rs.X Crore |
The face value of Balaji Speciality Chemicals shares is Rs. 2 each. The company is offering its shares to the public in two forms, a fresh issue and an offer for sale where shares of existing shareholders will be offered.
The Balaji Speciality Chemicals IPO Size and Balaji Speciality Chemicals IPO Price will be determined through the book-building process in which the bidders will place their bids during the subscription process. The bids will be placed within the price range as led out in the price band.
Balaji Speciality Chemicals IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| NA | NA | NA | NA |
| NA | NA | NA | NA |
Balaji Speciality Chemicals IPO GMP will be available around the IPO opening. GMP or Grey Market Premium is the premium sum at which the shares are traded of the issuer company before the listing takes place in the grey market.
Grey Market or parallel market is a trading setting where the traders bid and offer shares of the issuer company. This market plays a vital role in the determination of the issue price. Investors and traders closely observe the fluctuations of this market.
Balaji Speciality Chemicals IPO Subscription Status
| Day / Date | QIB | NII | RII | Emp | Total Subscription |
| 1st Day – | |||||
| 2nd Day – | |||||
| 3rd Day – | |||||
| Shares Offered or Net Issue |
Subscription is an elemental process of an IPO. It is the step where the company invites bids from the investors and indicates the demand for the shares in the market. Investors subscribe to an IPO online by agreeing to buy shares through the application form, which is generally ASBA based.
Balaji Speciality Chemicals IPO Subscription will be open once the IPO opening and closing date are determined and disseminated to the public.
Balaji Speciality Chemicals IPO Allotment Status
The Balaji Speciality Chemicals Allotment details are not available till now. The company’s IPO has not opened yet and is still in the preliminary steps. Allotment of shares is issuing the shares offered in the IPO to the successful allottees.
The allotment is undertaken in a dematerialized form, and the shares are credited in the Demat Accounts of the holders.
Balaji Speciality Chemicals IPO Live Performance
Find out the Balaji Speciality Chemicals IPO Performance and its current price on the stock exchange anytime from your comfort.
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Balaji Speciality Chemicals – Company Review
Originally incorporated as Balaji Benzochem Private Limited, Balaji Speciality Chemicals is a niche chemicals producer and provider which instigated its journey in 2010.
The company changed its name to Balaji Speciality Chemicals Private Limited in 2016. Further, in January 2022, the company changed its status from a private limited company to a public limited company.
Balaji Speciality Chemicals is a subsidiary of Balaji Amines, a leading ethyl and methyl amines manufacturer, and is also engaged in producing derivatives of these two chemicals.
Products or Services
Balaji Speciality Chemicals is a specialty chemicals manufacturing company. The company takes pride in being the only manufacturer of niche chemicals such as Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines, and Amino Ethyl Piperazine in India.
These are produced through the Monoethanol Amine process.
The company’s products are applied in various forms and supplied in various end-use industries including agrochemicals, specialty chemicals, and pharmaceuticals.
Balaji manages its massive production from its manufacturing facility located in Solapur, Maharashtra. It is scaling its operations and growing at a rapid pace, becoming the fastest growing specialty chemicals company in India.
Promoters and Holding
The Promoters of Balaji Speciality Chemicals Limited are:
- Balaji Amines Limited
- Ande Prathap Reddy
- Ande Srinivas Reddy
- Ram Reddy Dundurapu
- Rajeshwar Reddy Nomula
- Gaddam Hemanth Reddy
The management of the company comprises:
- Ande Prathap Reddy, Chairman, and Whole-time Director
- Rajeshwar Reddy Nomula, Managing Director
- Ram Reddy Dundurapu, Whole-time Director
- Gaddam Hemanth Reddy, Whole-time Director
- Rajendrakumar Mohanprasad Tapadiya, Independent Director
- Kashinath Revappa Dhole, Independent Director
- Amarender Reddy Minupuri, Independent Director
- Suhasini Yatin Shah, Independent Director
- Pardeep Singh Watwani, Chief Financial Officer
- Srinivas Bodige, Company Secretary and Compliance Officer
Is Balaji Speciality Chemicals good for Investment?
The specialty chemical manufacturer stepped into the market in 2010 and has gained a favorable advantage over other entities. The company is a material subsidiary of Balaji Amines Limited.
The entity works in a specialty segment and has emerged as one of the fastest-growing companies in India. The group offers some unique products and serves numerous industries. They have various renowned entities in their clientele.
Balaji Speciality Chemicals Financial Statements
| Amount (in INR & Million) | |||
| 31-Mar-22 | 31-Mar-21 | Mar-20 | |
| Assets | 4,016.10 | 3,030.44 | 3,042.44 |
| Revenue | 5,160.42 | 1,758.78 | 541.15 |
| Expense | 3,619.88 | 1,606.34 | 764.51 |
| Profit After Tax | 1,089.45 | 103.95 | (158.70) |
In the recent year, the operations of Balaji Speciality Chemicals took a high leap and reflected an outstanding result in terms of revenue and profits.
In 2022, the company’s total revenue was Rs. 5,160.42 million and the net profit for the period was Rs. 1,089.45 million, respectively.
In the earlier financial years, the total revenue was Rs. 1,758.78 for 2021 and Rs. 541.15 million for 2020. After incurring a loss of Rs. (158.70) million in 2020, the company made a profit of Rs. 103.95 million.
Let’s see the EPS condition of the company. As per the table, for the recent period, the EPS was Rs. 5.45 in March 2022. The EPS, too, has taken a progressive site compared to previous years.
| Earnings per Equity Share (in Million) | |||
| 31-Mar-22 | 31-Mar-21 | Mar-20 | |
| Basic & Diluted | 5.45 | 0.52 | (0.79) |
Balaji Speciality Chemicals IPO Review
Balaji Speciality Chemicals IPO comprises a Fresh Issue of Equity shares aggregating up to Rs. 250 crores and an Offer for Sale aggregating up to 2,60,00,000 Equity Shares.
The company was incorporated in 2010 and is engaged in manufacturing nice chemicals. It has a wide range of products and is contributing to various industries.
The company is launching its IPO to improve its financial position by clearing its debts and maintaining its operations efficiently.
Before filing the Red Herring Prospectus, Balaji Speciality Chemicals might consider a pre-IPO placement by way of a preferential issue or any other means as allowed by the law for up to Rs. 50 crores.
In the IPO, Promoters and Promoter Group will be divesting their holding in the company.
Balaji Speciality Chemicals IPO Details
Here are few more details you need to know before investing in Balaji Speciality Chemicals IPO –
Balaji Speciality Chemicals IPO Issue Object
The Balaji Speciality Chemicals has proposed diverse objectives for making the IPO offer and some of the objectives are:
- Repayment/pre-payment, in full or in part, of certain outstanding borrowings availed by our Company
- Funding working capital requirements of our Company; and
- General corporate purposes.
Balaji Speciality Chemicals IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Sole manufacturer of niche chemicals in India, including Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines and Amino Ethyl Piperazine (source: CRISIL Report), with significant export potential.
- Well positioned to capture industry tailwinds.
- Rapidly developed a diversified global and Indian customer base.
- Ability to leverage research and development capabilities and strategic guidance from our Corporate Promoter.
- Manufacturing Facility with stringent quality norms and procedures.
- Improving, profitability and enhancement of market share.
- Professional management team with extensive domain knowledge and supported by a committed employee base
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-22 | 5.45 | 81.91 | 9.37 |
| 31-Mar-21 | 0.52 | 14.18 | – |
| Mar-20 | (0.79) | (20.86) | – |
Balaji Speciality Chemicals IPO Lead Managers
Here are the list of Lead managers –
- HDFC Bank Limited
- JM Financial Limited
Balaji Speciality Chemicals IPO Registrar to offer
Check out the details of the registrar here –
Link Intime India Private Limited
Address – C 101, 247 Park, L.B.S. Marg, Vikhroli (West), Mumbai 400083, Maharashtra, India
Tel: +91 22 4918 6200
E-mail: Balaji Speciality Chemicals.ipo@linkintime.co.in
Website: www.linkintime.co.in
Investor grievance E-mail: Balaji Speciality Chemicals.ipo@linkintime.co.in
Contact Person: Shanti Gopalkrishnan
SEBI Registration No.: INR000004058
Balaji Speciality Chemicals IPO – Other Details
- Statutory Auditor – M. Anandam & Co.
- Legal Counsel to the Company – Khaitan & Co
- Bankers to the Company – Bank of Baroda, HDFC Bank Limited, and State Bank of India
Balaji Speciality Chemicals IPO – Conclusion
The Balaji Speciality Chemicals is a profit-yielding company that has been present for more than a decade in the Indian Market. The company will be raising money through the fresh issue as well as a share sale.
The company is coming up with an IPO to mop funds from the public and utilize the sum towards repayment and pre-payment of the outstanding debts availed by the company. Further, it will put the funds for funding its working capital requirements.
Balaji Speciality Chemicals is a prospective company growing and expanding at a good pace. Its long-term avenues too look favorable.
All these circumstances make it a good choice for investment.
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Balaji Speciality Chemicals IPO Review FAQs
Check out the FAQs on Balaji Chemicals IPO –
What is the Issue Size of Balaji Speciality Chemicals IPO?
The Company is making an initial public offer of NA equity shares. They vividly portray the aspects of the issue in this article.
You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Balaji Speciality Chemicals IPO?
The price band for this particular IPO ranges between Rs.X to Rs.X. As far as the face value of the share is of concern, it is Rs.2 per share.
What is the Balaji Speciality Chemicals IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on NA, while the closing date is set at NA.
What is the Balaji Speciality Chemicals IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO.
Basis of Allotment finalization is on NA, refund initiation is on NA, credit of shares is on NA, and share listing date is on NA.
What is the Balaji Speciality Chemicals IPO Listing Date?
Shares of this company shall be listed in the exchanges NA. The date, when the listing would be done, is stagnant on NA.
Who is the Registrar of Balaji Chemicals IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Link Intime India Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Balaji Chemicals IPO?
Here are the promoters of this IPO – Balaji Amines Limited, Ande Prathap Reddy, Ande Srinivas Reddy, Ram Reddy Dundurapu, Rajeshwar Reddy Nomula and Gaddam Hemanth Reddy. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Balaji Speciality Chemicals IPO?
They have obtained the GMP of this IPO and it is (Rs.X). Further insights of Kostak rate and subject to sauda or SS are as well included in this report.
Is Balaji Chemicals IPO good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Balaji Speciality Chemicals Company?
They have the information of company financials, and according to that, they have the figures from the last few years to provide.
PAT for the financial year 2022 in Million is 1,089.45, 2021 is 103.95, and 2020 is (158.70).
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