Balaji Speciality Chemicals IPO

Balaji Speciality Chemicals is the only maker of specialized chemicals in India, including Ethylenediamine, Piperazine (Anhydrous), Diethylenetriamine, Amino Ethyl Ethanol Amines, and Amino Ethyl Piperazine By adopting the Monoethanol Amine (“MEA”) technique (Source: CRISIL Report). Balaji Speciality Chemicals IPO will hit the stock market on 18 August 2023.

About Balaji Speciality Chemicals

The chemicals they produce are import alternatives that are used in a variety of end-use sectors, including medicines, agrochemicals, and specialty chemicals (Source: CRISIL Report).

They started commercial production in June 2019 at their manufacturing plant in Solapur, Maharashtra, and since then, they’ve scaled their operations, grown their brand, and added more clients to become one of India’s specialty chemicals industry’s fastest-growing companies (Source: CRISIL Report).

They are a division of Balaji Amines Limited (“BAL”), one of India’s top aliphatic amine producers (Source: CRISIL Report).

Manufacturing of methylamines, ethylamines, derivatives of specialized chemicals, and pharmaceutical excipients is Balaji Amines’s area of expertise (Source: CRISIL Report). Monomethyl Amine, Dimethyl Amine, and Trimethyl Amine are some of Balaji Amines Limited’s main commodities.

Business

As of March 31, 2022, its product portfolio consisted of five specialized chemicals that served a variety of end user sectors, such as pharmaceuticals, agrochemicals, & specialty chemicals.

They have concentrated on goods that meet the following criteria: first-time Indian production, import alternatives, continuous process technology, strong export potential, & numerous high-growth application fields such specialty chemicals, pharma, and agrochemicals as well as common raw materials.

Historically, these products were imported from foreign markets, such as those in Japan, China, Belgium, Sweden, and Saudi Arabia, because there was no viable alternative to their products in the end-use sectors they served.

A sizeable share of the overall demand for these products. Year after year, they have steadily raised the amount of their produce.

Solutions

They have a sizable customer base now. In the fiscal year 2022, they sold their goods to 182 clients, including distributors who in turn sold their goods to clients in the pharmaceutical, agricultural, & specialty chemical industries.

Their principal clients include Dr. Reddy’s Laboratories, Aarti Dugs, Korea India, UPL , & Nanjing Union Chemical Company. Their customer base has increased from 45 customers in Fiscal 2020 to 182 customers in Fiscal 2022 as a result of the development of solid ties with a variety of clients.

They think that by spreading out the end-use customers they serve across a variety of industries, they have been able to lessen the impact that disruptions in one area might have on their business operations & prospects.

Balaji Speciality Chemicals IPO

Balaji Speciality Chemicals Limited, headquartered in Chennai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 250 Crore & 26,000,000 Equity Shares on 29 July 2022.

The offer includes a fresh issue of INR 250 Crore and there is offer for sale (OFS) of 26,000,000 Equity Shares by the promoters mentioned in the DRHP. They are looking for a Pre-IPO placement INR 50 Crore in this issue.

They got approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-22	31-Mar-21	31-Mar-20
Total Assets		401.61	303.04	304.24
Total Revenue		516.04	175.88	54.12
Loss After Tax		108.95	10.40	(15.87)

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	5.45	5.45	3
Financial Year 2021	0.52	0.52	2
Financial Year 2022	(0.79)	(0.79)	1
Weighted Average	2.76	2.76

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

Balaji Speciality Chemicals limited feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the offer price:

• The only production of specialized chemicals in India, with major export potential, including ethylenediamine, piperazine (anhydrous), diethylenetriamine, amino ethyl ethanol amines, and amino ethyl piperazine.
• Ideally situated to benefit from industry headwinds.
• Created a diverse international and Indian customer base quickly.
• Utilizing their corporate promoter’s strategic advice and research and development resources.
• Production facility with strict quality standards and guidelines.
• Enhancing market share and increasing profitability.
• Professional management team with in-depth industry expertise, backed by a loyal workforce.

Balaji Speciality Chemicals Peer Comparison

S. No.	Face Value	Company Name	PE
1	1	Clean Science and Technology Limited	74.81
2	2	Alkyl Amines Chemicals Limited	69.84
3	10	Tatva Chintan Pharma Chem Limited	52.61
4	10	Neogen Chemicals Limited	76.02

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the NSE on August 8, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.

Balaji Speciality Chemicals IPO Details

IPO Opening Date	18 August 2023
IPO Closing Date	22 August 2023
Issue Type	Book Building
Face Value	2 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	–
Fresh Issue	250 Crore
Offer for Sale	26,000,000 Equity Shares

Balaji Speciality Chemicals IPO Date

Balaji Speciality Chemicals Limited IPO opening date is 18 August 2023, and the closing date is 22 August 2023. The Balaji Speciality Chemicals issue may list on 30 August 2023.

IPO Opening Date	18 August 2023
IPO Closing Date	22 August 2023
Basis of Allotment Date	25 August 2023
Initiation of Refunds	26 August 2023
Credit of Shares to Demat Account	29 August 2023
IPO Listing Date	30 August 2023

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Balaji Speciality Chemicals India Limited IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Balaji Speciality Chemicals IPO.

Balaji Speciality Chemicals IPO GMP

Balaji Speciality Chemicals Limited IPO Grey Market Premium is 55. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
08 August 2023	55
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Balaji Speciality Chemicals Limited IPO Review

Balaji Speciality Chemicals Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Balaji Speciality Chemicals IPO is good or bad.

Balaji Speciality Chemicals Limited IPO Risk

• They do not enter into long-term contracts with their clients, so the loss of one or more of their most important clients, a decline in their financial situation or prospects, or a decrease in the demand for their products could all have a negative impact on their operations, financial condition, cash flow, and business.
• They are exposed to certain hazards in their manufacturing processes because their business depends on our manufacturing facilities.
• They have a short operating history and have previously suffered losses. Future profitability may not always be maintained by them.
• Their operations, cash flows, financial position, and results of operations may all be negatively impacted by restrictions on the import of raw materials and an increase in shipping costs.

Other Threats

1. Sales of a few different types of speciality chemicals, and particularly the sales of ethylenediamine, are essential to their operation.
2. They only operate in a small number of markets, therefore any unfavorable changes in any of those important markets could have a negative impact on their commercial prospects and financial performance.
3. Solapur, Maharashtra, is home to their lone manufacturing unit. Any unfavorable change impacting Maharashtra or the places around it could have a negative impact on their business.
4. They must adhere to high quality standards, undergo routine inspections and audits, and their quality controls and standards are a requirement for the selling of our products.
5. Their ability to make money depends on how well their clients’ items do with customers.

Balaji Speciality Chemicals Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Balaji Speciality Chemicals IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Balaji Speciality Chemicals Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
18 August 2023	1
21 August 2023	2
22 August 2023	3

Balaji Speciality Chemicals Limited Management

They have a strong management and leadership team under the direction of Rajeshwar Reddy Nomula, their managing director, who has more than three decades of expertise in the chemical sector.

They are managed by a skilled management group with practical experience. The success of our company has been significantly aided by their Whole-Time Directors, Ram Reddy Dundurapu, Gaddam Hemanth Reddy, & Ande Prathap Reddy, who have a wealth of expertise in the chemicals sector.

Their senior management team has played a key role in creating a successful, scalable operational strategy & reliably producing profitable outcomes.

The method is based on “continuous flow” over numerous unit operations and utilizes a high pressure-high temperature catalytic fixed bed reactor with equilibrium reaction (Source: CRISIL Report).

Balaji Speciality Chemicals Limited‘ Promoters

• Ande Prathap Reddy
• Rajeshwar Reddy Nomula
• Ram Reddy Dundurapu
• Gaddam Hemanth Reddy
• Ande Srinivas Reddy
• Balaji Amines Limited

Principal Shareholder’s Holding

Pre Issue Share Holding	78.43%
Post Issue Share Holding

Balaji Speciality Chemicals Limited Prospectus