Balaji Solutions files draft papers with Sebi for IPO

PTI Updated - August 16, 2022 at 12:57 PM.

The company will use the proceeds for funding incremental working capital requirements

IT hardware and mobile accessories firm Balaji Solutions has filed preliminary papers with capital markets regulator Sebi to raise funds through an initial public offering (IPO).

The public issue consists of a fresh issue of equity shares worth up to ₹120 crore and an offer-for-sale (OFS) of up to 75 lakh equity shares by promoter and promoter group entity, according to the draft red herring prospectus (DRHP).

Under the OFS, Rajendra Seksaria and Rajendra Seksaria HUF will offload shares.

The offer also includes a reservation for subscriptions by eligible employees.

The company may consider a pre-IPO placement aggregating up to ₹24 crore. If such placement is completed, the fresh issue size will be reduced.

Proceeds from its fresh issuance worth ₹86.60 crore will be utilised for funding incremental working capital requirements and general corporate purposes.

Balaji Solutions is an IT hardware and peripherals and mobile accessories company engaged in the business of manufacturing and branding products under its flagship brand "Foxin".

The company's revenue decreased to ₹482.25 crore for the financial year 2022 from Rs ₹483.48 crore for the financial year 2021, besides, profit after tax dropped to ₹15.39 crore in FY22 from ₹16.25 crore in the preceding fiscal.

IDBI Capital Markets and Securities and Affinity Global Capital Market are the books running lead managers. The equity shares are proposed to be listed on BSE and NSE.

Published on August 16, 2022 07:27

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