Balaji Speciality Chemicals IPO plans put on hold

Balaji Speciality Chemicals, which received approval from SEBI in November to proceed with its IPO, did not provide a reason for withdrawing the DRHP.

Balaji Speciality Chemicals has withdrawn its IPO papers. The company, which received approval from SEBI in November to proceed with its IPO, did not provide a reason for withdrawing the DRHP.

On September 8th, Balaji Speciality Chemicals, a subsidiary of Balaji Amines, announced that it had withdrawn the draft papers it had filed to raise funds through an initial public offering. The speciality chemicals maker informed its parent company that its board of directors had decided, through a resolution, to withdraw the draft red herring prospectus filed with the Securities and Exchange Board of India. No reason was given for this decision.

As a result, the DRHP has been withdrawn, according to a filing by Balaji Amines with the exchanges. The company had filed the DRHP with the capital markets regulator on August 10th, 2022. According to analysts who spoke on condition of anonymity, the stock had even begun trading in the grey market at a premium of Rs 50-55.

In November, SEBI gave the green light for the company to proceed with its IPO. A company must launch its IPO within one year of receiving an observation letter from SEBI. The proceeds from the fresh issue were to be used primarily for debt repayment and working capital requirements, with the remainder being used for general corporate purposes.