The Mumbai based specialty chemicals firm Rossari Biotech will kickstart its initial public offer next week, on July 13, and end nearly four months of COVID-19-induced inactivity for IPOs in the domestic markets.
Bids by anchor investors shall be submitted, and allocation to them will be completed on July 10, 2020, being one working day prior to the Offer opening date.
Carlyle-backed SBI Cards & Payment Services was the last company to list — on March 16, 2020 — after a Rs 10,000 crore IPO.
The issue will open on July 13 and close on July 15. The price band is between Rs 423-Rs 425/share according to an IPO note by one of the book running lead managers, Axis Capital.
Minimum Bid lot is 35 equity shares and in multiples of 35 Equity Shares thereafter
- Price Band of Rs. 423 – Rs. 425 per Equity Share
- Offer opening date – July 13, 2020 and Offer closing date – July 15, 2020
- The floor price is 211.50 times the face value of the Equity Shares and the cap price is 212.50 times the face value of the Equity Shares.
ICICI Securities is the other advisor on the issue. Each share will have a face value of Rs 2 with bid lots available in 35 shares and in multiples thereof.
The IPO will consist of a fresh issue of equity shares aggregating up to Rs 50 crore and an offer for sale component of up to 10,500,000 equity shares. The issue size is pegged around Rs 494-Rs 496 crore.
Rossari Biotech’s business is organised in three main product categories –
(i) home, personal care and performance chemicals (HPPC);
(ii) textile specialty chemicals; and
(iii) animal health and nutrition products (AHNP)
According to the report titled “Global and Indian Specialty Chemicals Report” dated December 10, 2019, prepared by Frost & Sullivan (India) Private Limited (“F&S”, and such report, the “F&S Report”), the Company was the largest manufacturer of textile specialty chemicals in India as on September 30, 2019, and is a leading manufacturer of acrylic polymers in India.
As stated in the RHP, the Company plans to venture into the construction chemicals market and water treatment formulations market. The global specialty chemicals market cumulatively constitutes a global market of approximately USD 237 billion in 2018 and is expected to grow at 5.4% per annum to reach approximately USD 308 billion by 2023.