Balaji Speciality Chemicals IPO issue begins on August 18, 2023, and closes on August 22, 2023.
Salient Features of Balaji Speciality Chemicals IPO:
- According to the Red Herring Prospectus (RHP), this IPO is a combined form of fresh issue, and Offer for Sale by the company investors.
- The company plans to open fresh issues of about ₹250 crore aggregating to 2.6 crore shares. The face value of the share will be ₹2 and the listing of the IPO issue will be conducted in National Stock Exchange, NSE, and Bombay Stock Exchange, BSE.
- The promoters hold a 97.98 percent stake in the company and with the declaration of the share price, one can get to realize the total equity dilution of promoters, the fresh issue, and offer for sale.
- The IPO issue will contribute a free float from three directions, fresh issue, offer for sale, and transfer of promoter equity to public shareholders.
Balaji Speciality Chemicals IPO Date, Price, GMP & Analysis
Balaji Specialty Chemicals holds an intensive activity in the research and development of specialty chemicals that are applied in the field of agrochemicals, specialty chemicals, and pharmaceuticals.
The company’s manufacturing unit is located in Solapur, Maharashtra where it generates chemical products with a capacity of 30,000 MT per annum (MTPA).
Further, to take the company to the next level the company has decided to go for public funding (₹250 crore) with its objects when applying for an SME IPO issue in Red Herring Prospectus.
Spread across China, the US, Germany, Malaysia, Belgium, Kuwait, Korea, UK, Turkey, UAE, and Italy, and firmly held in India, Balaji Speciality Chemicals Ltd, a specialty Chemicals shall open for public funding through IPO issue at both NSE/BSE.
The company holds prestigious clients over 180, incidentally all for short-term business contracts. In addition, the company shall receive financial backing from HDFC Bank Ltd, and JM Financials, and Link Intime India Private Ltd, the registrar to this IPO issue.
Before you opt to purchase ‘specialty chemicals’ shares, it is advisable to make comparisons with peers, company background, financial position in past years, strengths, and the impending risks in business operations mode.
Another important issue, when you plan to purchase on a public issue offer, you must learn about company operations, and establishments as well.
In the below lines, you can find all those in detail, in addition, to information on the IPO issue offer, and the IPO Event timetable.
On viewing such information you can decide whether to purchase a share at the stock market or not. Moreover, you can also get to know the process of applying for the IPO issue.
IPO Funding Objects:
The plans to invest the IPO funds obtained in diversified areas such as repayment/prepayment in full or in part, of outstanding borrowed.
Further, the company wants to fund working capital needs and other general corporate requirements.
Balaji Speciality Chemicals in Nutshell:
- Balaji Speciality Chemicals is a subsidiary of Balaji Amines Limited (BAL), a major manufacturer of Indian Aliphatic Amines.
- Currently, Balaji Chemicals manufactures specialized compounds such as Diethylenetriamine, Amino Ethyl Ethanol Amines, Amino Ethyl Piperazine, Ethylenediamine, and Piperazine ( Anhydrous).
- It is a well-established company that provides companies with products that serve as a direct raw materials to their client’s end products.
- To date, the company adopts a strategy by seeking research and development support from the parent company in this direction the company has attained good client relationships in the local/National/Global context.
- The chronicle of records shows the relative improvement in market share and profitability.
Risk in its Operations:
- The company has signed short-term contracts with its clients or suppliers.
- If you view the profit/loss balance sheet you can observe it to have incurred losses in the yester years.
- Profitability can get impacted when the government imposes restrictions on raw material imports and any increase in shipping costs can alter the profitability in such a case.
- The company is highly dependent on a single product ( Ethylenediamine) which is 67 percent and affecting its sales can cause a loss in its business performance.
- The company has tough competition from its peers like Neogen Chemicals Limited, Tatva Chintan Pharma Chem Limited, Clean Science and Technology Limited, and Alkyl Amines Chemicals Limited.
Categorical Allotment of Quota in the IPO Issue:
The intending players who are eligible to participate in the IPO are Qualified Institutional Buyers, Retail Investors, and HNI/NII investors.
For Qualified Institutional Buyers, QIB, the SEBI has reserved 50 percent of the total net offer, for retail investors, the sizable reserve is 35 percent of the total issue, and for the remaining 15 percent is allotted for HNI/NII investors.
Balaji Speciality Chemicals Ltd IPO Time Table:
You can subscribe for the IPO issue on 18 August 2023 and it shall be closed by 22 August 2023 by 5 PM. Your request for allotment shall be decided on 25 August 2923 and the process of refund shall begin on 28 August 2023. The IPO shall be listed on 30 August 2023 on the NSE/BSE.
Consolidated Financial Status of (FY 20,21,22,23) as on March 31.
| Period Ended | 3/31/2020 | 3/31/2021 | 3/31/2022 | 3/31/2023 |
| Assets | 304.24 | 303.04 | 401.61 | 480.98 |
| Revenue | 54.12 | 175.88 | 516.04 | 798.74 |
| Profit After Tax | -15.87 | 10.4 | 108.95 | 178.14 |
| Net Worth | 68.13 | 78.53 | 187.48 | 365.55 |
| Reserves and Surplus | 28.13 | 38.53 | 147.48 | 325.55 |
| Total Borrowing | 203.55 | 204.41 | 166.64 |
How to apply for the Balaji Specialty Chemicals IPO issue?
There are various methods to apply for IPO issues and you can approach the IPO process through trading accounts either with discount brokerage companies/ financial institutions or apply in ASBA which is linked directly to the applicant’s Internet banking account.
The SEBI allows you to engage in financial transactions only through the authorised self-certified syndicate banks (SCSB).
In the case of the ASBA, the requisite amount is blocked by the bank and is released only after the process of the IPO share allotment is complete.
Note: If you are a retail buyer, you are entitled to make an investment of up to ₹2 lakh per application otherwise, for institutional players/HNI/NII quota the investment amount shall be over and above ₹2 lakh.
Application Process:
- You can log in to your chosen broker company and make a selection from the IPO section.
- You are advised to enter the lot and price for which you are intending to apply.
- You must enter the UPI ID and then click the submit button which means you have made a request for the IPO issue.
Note: You will receive a mandate notification to block funds in your UPI app and after seeking your approval the assigned funds shall be blocked in relevance.
Registrar to Balaji Speciality Chemicals.
Balaji Speciality Chemicals has assigned the authority to Link Intime India Private Ltd as a functionary of Registrar to the IPO issue.
You can obtain answers to your queries on IPO issues on any of your desired channels such as
Phone: +91-22-4918 6270
Email: balajispeciality.ipo@linkintime.co.in/
Website: https://linkintime.co.in/mipo/ipoallotment.html.
Balaji Speciality Chemicals Ltd: Address for Correspondence
For your queries, you can approach any of the designated channels or contact in person at the stated Address: Balaji Speciality Chemicals Limited/2nd Floor, Balaji Towers No. 9/1A/1, Hotgi Road, Aasara Chowk, Solapur – 413224.
Other, channels to correspond are Phone: +91 217 2606 006 | Email: investors@balajispeciality |Website: http://www.balajispecialitychemicals.com/.