Specialty chemical stock jumps 6% after its subsidiary gets board's nod to launch IPO

Shares of Balaji Amines surged six percent after the company said that that board of its material subsidiary, Balaji Speciality Chemicals (BSCL), approved raising funds through an initial public offering (IPO). Reacting to the development, the counter rose 6.2% to hit the day's high of Rs 3454 per share in Thursday's early trade on the BSE.  

As part of the fund raising via IPO, Balaji Amines subsidiary company, the BSCL will raise funding via fresh issue of equity shares aggregating up to Rs 25 crore. 

"The Board of Directors of our Company's material subsidiary, Balaji Speciality Chemicals Limited (BSCL) in a meeting held on 1st June, 2022 has approved fund raising, subject to receipt of requisite approvals including approval of the shareholders, market conditions and other considerations, by way of an initial public offer of its Equity Shares comprising of fresh issue of Equity Shares aggregating up to Rs. 2,500.00 Million (including share premium) and/ or an offer of sale of Equity Shares by certain existing and eligible shareholders of the Company," said the company in regulatory filing. 

Around 3.05 pm, stock of Balaji Amines were trading with over two per cent gain to Rs 3322.15 apiece on the BSE.  

Balaji Amines Ltd., INDIA, is an ISO certified company, specialised in manufacturing Methylamines, Ethylamines, Derivatives of Specialty Chemicals and Pharma Excipients.  

It also has facilities for the manufacture of derivatives, which are downstream products for various Pharma /Pesticide industries apart from user specific requirements. 

Balaji Amines quarterly Net Profit jumped 3.09% to Rs Rs. 81.68 crore in March 2022 from Rs. 79.23 crore in March 2021. 

Net Sales stood at Rs 619.00 crore in March 2022 up 66.55% from Rs. 371.67 crore in March 2021.