Balaji Speciality Chemicals has filed preliminary with capital markets regulator Sebi to raise funds through an initial public offering (IPO).The IPO consists of a fresh issue of equity shares worth up to ₹250 crore and an offer-for-sale (OFS) of up to 2,60,00,000 equity shares by promoters and promoter group entities, according to the draft red herring prospectus (DRHP).Proceeds worth ₹68 crore from the fresh issue will be used to repay debt, and ₹119.5 crore will be spent on working capital requirements, besides general corporate purposes.The company may consider a pre-IPO placement aggregating to ₹50 crore. If such placement is undertaken, the size of the fresh issue will be reduced.Incorporated in 2010, Solapur-based Balaji Speciality Chemicals manufactures niche chemicals, which are used in various end-use industries, such as speciality chemicals, agrochemicals and pharmaceuticals. Its key customers include Nanjing Union Chemical Company Limited, Korea India Limited, UPL Limited, Dr Reddy's Laboratories Limited and Aarti Drugs Limited. From FY20 to FY22, its customer base grew from 45 to 182 customers.It had a total installed production capacity of 30,000 MTPA as of March 31, 2022.The company's revenue from operations increased from ₹174.40 crore in fiscal 2021 to ₹514.28 crore in FY22. It clocked a profit of ₹108.95 crore in FY22 against ₹10.40 crore a year ago. HDFC Bank and JM Financial are the book-running lead managers to the issue. The equity shares of the company will be listed on BSE and NSE.