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.
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.
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.