Balaji Wafers to sell 10% stake via IPO

The company decided on the IPO about 8-9 months ago, but became busy with the construction of the new plants, co-founder Chandu Virani told the financial newspaper.

Balaji Wafers Pvt. Ltd. will sell a 10% stake through an initial public offering (IPO) in six months, but it is waiting for the completion of work on its new plants in Indore, reports a business daily.

The company decided on the IPO about 8-9 months ago, but became busy with the construction of the new plants, co-founder Chandu Virani told the financial newspaper. 

“These plans are getting delayed as the company management is busy with ongoing expansion,” said Virani, adding that the company is seeking to raise Rs. 300 crore through the IPO.

Late last year, Balaji Wafers had raised a loan of INR 100 crore from lenders, including Kotak Mahindra Bank.

“We need Rs. 225 crore to fund our expansion plans in the coming year,” Virani told the paper, adding that some of the money will come from internal accruals.

Balaji Wafers expects to end the current financial year with revenue of INR 1,400 crore, an increase of 16.6% from Rs. 1,200 crore topline recorded in FY15. 

Net profit has been in the range 10-12% of revenue for the last five years and will be in line with that in FY16 also, Virani said.