Speciality chemicals maker Balaji Amines Ltd on Friday (September 8) said its arm Balaji Speciality Chemicals Ltd (BSCL), has withdrawn its initial public offering (IPO) prospectus filed with market regulator SEBI.

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"...we have been informed by BSCL that its Board of Directors (on) September 8, 2023 ... decided to withdraw the DRHP filed with SEBI," Balaji Amines said in a regulatory filing.

Last year, BSCL received capital markets regulator SEBI's approval to raise funds through an IPO.

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According to the draft red herring prospectus (DRHP), the IPO would comprise a fresh issue of equity shares worth up to Rs 250 crore and an offer-for-sale (OFS) of up to 2,60,00,000 equity shares by promoters and promoter-group entities.

Proceeds worth Rs 68 crore from the fresh issue would be used to repay debt, and Rs 119.5 crore would be spent on working capital requirements and general corporate purposes. The company may consider a pre-IPO placement aggregating to Rs 50 crore. If such placement is undertaken, the size of the fresh issue will be reduced.

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 include Nanjing Union Chemical Company Lts, Korea India Limited, UPL Ltd, Dr Reddy's Laboratories Ltd and Aarti Drugs Ltd. 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.

Shares of Balaji Amines Ltd ended at Rs 2,252.00, up by Rs 7.55, or 0.34 percent on the BSE.