Why is Balaji Amines on a nosedive

Balaji Amines , a prominent aliphatic amines manufacturer in India, has had its share of ups and downs. Over the last 10 years, it has delivered an impressive annual return of 52.5 per cent (as of September 27, 2023). However, recent setbacks have taken a toll on its stock price, which plummeted by 32 per cent over the past year. Let's delve into the issues plaguing Balaji Amines. Resignations rattle investors The company's Board witnessed a significant shake-up in Q1 FY24. In May 2023, five independent Directors - Naveena Thammishetty Chandra, Kashinath Revappa Dhole, Satyanarayana Murthy Chavali, Amarender Reddy Minupuri, and Vimala Behram Madon - tendered their resignations. Initially attributed to "personal reasons," this mass exodus sent shockwaves through the market, causing a 15 per cent drop in share price. Subsequently, the company clarified that these resignations were prompted by SEBI's regulations, which impose a 10-year term limit for independent directors. IPO plans abandoned, results delayed Balaji Amines had been gearing up for an IPO of its subsidiary, Balaji Speciality Chemicals. They submitted the draft prospectus to SEBI in August 2022 and secured approval. However, the IPO faced constant delays and was ultimately withdrawn on September 8, 2023. Further compounding the woes, the company postponed the release of its quarterly results. Citing management's involvement in the subsidiary's IPO,