The initial public offer (IPO) of Rossari Biotech Ltd on Monday was subscribed 60% on the first day of the offering. Rossari Biotech has set a price band of Rs 423-425 per share. The IPO closes on 15 July. The company plans to raise Rs 50 crore through the IPO, while promoters are selling shares worth Rs446 crore.
As per stock exchange data, the portion of shares reserved for institutional investors has subscribed 41 per cent, while shares reserved for non-institutional investors or HNIs saw subscription of 11 per cent. The retail quota was subscribed 92 per cent.
Rossari Biotech is a manufacturer of speciality chemicals. It provides customized solutions to the apparel, animal & poultry feed, and FMCG industries by offering a diversified product portfolio and operates in 18 countries including India, Bangladesh, Vietnam, and Mauritius.
Motilal Oswal in an IPO report said “The company has delivered robust growth in revenue/EBITDA/PAT over FY2015-FY2020, reporting CAGRs of 31%/51%/78%, leading to high return ratios (RoE/RoCE at 25%/32% in FY2020). The new capacity expansion at Dahej (132ktpa) should strengthen its portfolio in the high-growth HPPC segment to serve its wide customer base. Customized product offering, fungible capacities and rapid finished product conversion rate remain the key differentiators for the company. At the upper price band of Rs425, the stock is available at 33 times FY2020 earnings”.
Rossari Biotech is the first IPO to hit the Indian markets since SBI Cards and Payments Services Ltd raised over Rs10,000 crore in early March. Investment banks Axis Capital and ICICI Securities are managing the IPO.