Rossari Biotech to launch IPO with price band of Rs 423-425

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Published: July 9, 2020 2:10 AM

Rossari Biotech said that the size of the fresh issue of up to Rs 150 crore has been reduced by Rs 99.99 crore pursuant to the pre-IPO placement, and accordingly, the size of the fresh issue is up to Rs 50 crore.

The IPO will include fresh issue of equity shares as well as offer for sale (OFS) with the size of the issue being close to Rs 496 crore.The IPO will include fresh issue of equity shares as well as offer for sale (OFS) with the size of the issue being close to Rs 496 crore.

Specialty chemicals manufacturer Rossari Biotech is launching its initial public offering (IPO) on Monday with a price band of Rs 423-425 per equity share. The IPO will include fresh issue of equity shares as well as offer for sale (OFS) with the size of the issue being close to Rs 496 crore.

Rossari Biotech provides customised solutions to specific industrial and production requirements of its customers primarily in the FMCG, apparel, poultry and animal feed industries through their diversified product portfolio comprising home, personal care and performance chemicals; textile specialty chemicals; and animal health and nutrition products. The company operates in India as well as in 17 other countries including Vietnam, Bangladesh and Mauritius.

The company has already raised Rs 99.99 crore in a private placement of shares to various investors including Malabar India Fund, Axis New Opportunities AIF-I , Mirae Asset Mid Cap Fund, Sundaram Mutual Fund A/C Sundaram Select Micro Cap Series – XIV, IIFL Special Opportunities Fund – Series 4 and ICICI Lombard General Insurance Company.

Rossari Biotech said that the size of the fresh issue of up to Rs 150 crore has been reduced by Rs 99.99 crore pursuant to the pre-IPO placement, and accordingly, the size of the fresh issue is up to Rs 50 crore.

The firm stated that it intends to utilise the proceeds of the fresh issue, after the offer expenses, and the proceeds from the pre-IPO placement to repay/prepay borrowings of Rs 65 crore, to fund its working capital requirements of Rs 50 crore and towards general corporate purposes.
“The company will not receive any proceeds from the OFS,” it said.

According to the statement, the company generated total revenues of Rs 603.82 crore and a net profit after tax of Rs 65.25 crore in fiscal year 2020. “Over the last 3 years, it has managed to clock a compounded annual growth rate of 41.65% for its revenues and a compounded annual growth rate of 60.27% for its profit after tax. The debt equity ratio of the company stood steady at 0.23 across fiscal years 2018-2020,” the firm stated.

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