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Kolkata-based IT hardware and mobile accessories company Balaji Solutions Ltd (BSL) has filed Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise funds to the tune of around ₹120 crore 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 75,00,000 equity shares by promoter and selling shareholders, which comprises up to 15,00,000 by Rajendra Seksaria, up to 60,00,000 by Rajendra Seksaria HUF (selling shareholders). The offer also includes a reservation for a subscription by eligible employees, according to information available in the DRHP.
The company is in the business of manufacturing, branding, and distribution of products under its flagship brand, Foxin.
The proceeds from its fresh issuance worth around ₹87 crore will be utilised for funding incremental working capital requirements and general corporate purposes.
The company, in consultation with merchant bankers on the issue, may consider a pre-IPO placement aggregating up to ₹24 crores. If such placement is completed, the fresh issue size will be reduced.
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Proposed offering is to combine fresh isue of ₹1,250 crore and an offer for sale of 10.94 crore shares by promoters and selling shareholder for an undisclosed sum amountBalaji Solutions, which commenced operations in 2001 under the leadership of Rajendra Sekasaria, started as a distribution house and currently manufactures its own brand Foxin. West Bengal, Tamil Nadu, Maharashtra, Karnataka, and Kerala collectively accounts for nearly 59 per cent of its revenues in FY22.
During 2021-22, the company’s revenue from operations decreased marginally by less than one per cent to ₹482 crore, primarily due to normalization post easing of Covid-19 lockdown restrictions.
BSL’s manufacturing facility in Howrah has four production lines, aggregating to a total installed capacity of 216 lakh units in FY22. As of June 30, 2022, it sold its products in 28 states and five union territories through a network of 3,726 dealers.
IDBI Capital Markets and Securities Ltd and Affinity Global Capital Market Private Ltd are the book running lead managers and KFintech Technologies Ltd is the registrar to the offer. The equity shares are proposed to be listed on BSE and NSE.
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