Balaji Solutions files DRHP for IPO

16 Aug 2022 , 03:12 PM

Balaji Solutions, a provider of mobile accessories and IT gear, has submitted preliminary paperwork to Sebi, the regulator of capital markets, in order to raise money through an IPO (IPO).

The draught red herring prospectus states that the public offering would be made up of a fresh issue of equity shares up to the value of Rs 120 crore and an offer-for-sale (OFS) of up to 75 lakh equity shares by the promoter and promoter group entities (DRHP).

Shares will be sold by Rajendra Seksaria and Rajendra Seksaria HUF under the OFS. The offer also contains a space reserved for subscriptions from qualified workers. The business might take into account a pre-IPO transaction of up to Rs24 crore. If such a placement is successful, the size of the new issue will be decreased.

The proceeds from the new offering, worth Rs86.60 crore, would be used for general corporate purposes and to pay for additional working capital requirements. The company Balaji Solutions manufactures and brands items under its main brand, Foxin, in the fields of mobile accessories, IT gear, and peripherals.

Revenue for the firm fell to Rs482.25 crore for the fiscal year 2022 from Rs483.48 crore for the fiscal year 2021. Additionally, earnings after tax fell to Rs15.39 crore in FY22 from Rs16.25 crore the year before.

The principal managers for the books are IDBI Capital Markets and Securities and Affinity Global Capital Market. It is proposed that the equity shares are listed on both the BSE and NSE.