After a four month break in the IPO market, Rossari Biotech’s public issue opened for subscription today. In the ₹500 crore IPO, Rossari Biotech has fixed a price band of ₹423-425 per equity share and the issue will remain open till July 15th.
As of 10:30 am, Rossari Biotech IPO was subscribed 0.02 times.
Rossari Biotech’s IPO comprises fresh issuance of shares worth ₹50 crore and sale of 1,05,00,000 equity shares by company’s promoters through offer-for-sale route. Post the IPO, the promoter shareholding will fall to 73% from 95% earlier.
Rossari Biotech Listing
The equity shares will be listed on the NSE and BSE. According to brokerages, the likely date of listing could be 23rd July. Axis Capital and ICICI Securities are the merchant bankers for the share-sale. Link Intime India Pvt Ltd is the registrar of Rossari Biotech IPO.
Rossari Biotech IPO Lot Size
Investors can bid in lot sizes of 35 shares
The net proceeds from the IPO will be utilised for funding working capital requirements, repaying certain debt availed by the company and for general corporate purposes.
Rossari Biotech is a specialty chemicals manufacturing firm with focus on home and personal care, performance chemicals, textile specialty chemicals and animal health and nutrition products.
In FY20, Rossari Biotech had reported revenues of ₹600 core and net profit of ₹65.3 crore.
“Over FY17-20, it reported revenue, EBITDA and PAT CAGRs of respectively 37%, 63% and 66%. Its EBITDA margin expanded 724 bps to 17.5%. Net debt/equity in FY20 was 0.36x compared to 0.04x in FY19 due to debt-based funding of capex. The RoE and RoCE averaged 36% each over FY17-20,” domestic brokerage Anand Rathi said.