Balaji Amines Ltd arm, Balaji Speciality Chemicals Ltd has decided to withdraw the Draft red herring prospectus (DRHP) filed with Securities and Exchange Board of India (SEBI), the company said in an exchange filing.
“In connection with the offer, we have been informed by the Balaji Speciality Chemicals that its Board of Directors through a resolution passed in the Board Meeting dated September 8, 2023, has decided to withdraw the DRHP filed with SEBI, and accordingly, the DRHP has been withdrawn on September 8, 2023 as informed by the Balaji Speciality Chemicals vide letter dated September 8, 2023,” the company said.
On August 10, 2022, Balaji Speciality Chemicals filed their DRHP with SEBI in connection with their proposed initial public offering of their equity shares, which would have included a fresh issue of equity shares worth up to ₹250 crores (including share premium) and an offer for sale of equity shares worth up to 26,000,000 by certain existing shareholders.
In addition to general corporate reasons, the fresh issue’s proceeds worth ₹68 crore were intended to be utilised for debt repayment. Additionally, ₹119.5 crore will be used for working capital requirements.
The company was considering a pre-IPO placement for ₹50 crore in total.
Incorporated in 2010, Solapur-based Balaji Speciality Chemicals manufactures niche chemicals, which are used in various end-use industries, such as speciality chemicals, agrochemicals and pharmaceuticals.
Its key customers included Nanjing Union Chemical Company Limited, Korea India Limited, UPL Limited, Dr Reddy’s Laboratories Limited and Aarti Drugs Limited. From FY20 to FY22, its customer base grew from 45 to 182 customers.
It had a total installed production capacity of 30,000 MTPA as of March 31, 2022.
HDFC Bank and JM Financial were the book-running lead managers to the issue.
Also Read: Balaji Speciality Chemicals files IPO papers with SEB
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Updated: 08 Sep 2023, 04:20 PM IST