Rossari Biotech IPO to open on Jul 13

The company has fixed a price band of Rs 423-425 per equity share for its initial public offering (IPO) that will be open for public subscription during July 13-15, Rossari Biotech said in a statement. This would be the first company to brave the current volatile markets.

Specialty chemicals manufacturer Rossari Biotech will come out with its initial share-sale on July 13, which will end four months of lull in the IPO market. The company has fixed a price band of Rs 423-425 per equity share for its initial public offering (IPO) that will be open for public subscription during July 13-15, Rossari Biotech said in a statement.

This would be the first company to brave the current volatile markets. There has been a lull in the IPO market since the last initial share-sale of SBI Cards & Payment Services, which opened on March 2 and closed on March 5. In fact, many companies that received Sebi's go-ahead deferred their issue to a later date.

Rossari Biotech's IPO comprises issuance of fresh shares worth Rs 50 crore and and a sale of 10,500,000 equity shares by the company's promoters through the offer-for-sale route. It has raised Rs 100 crore in a private placement of 2,352,920 equity shares to various investors, including Malabar India Fund Limited, Axis Mutual Fund, Mirae Asset Mutual Fund, Sundaram Mutual Fund, and ICICI Lombard General Insurance Company Limited.

The size of the fresh issue of up to Rs 150 crore has been reduced by Rs 100 crore pursuant to the pre-IPO placement, and accordingly, the size of the fresh issue is now up to Rs 50 crore. At the upper end of the price band, the IPO size is about Rs 496 crore.

The net proceeds from the issue will be utilised to fund working capital requirements, repaying certain indebtedness availed by the company and for general corporate purposes. Axis Capital and ICICI Securities are the merchant bankers for the share-sale. The equity shares will be listed on the National Stock Exchange and the BSE.

The company, which had filed its draft papers with Sebi in December 2019, received clearance from the regulator in February to launch the IPO. 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. Apart from India, it has operations in 17 countries including Vietnam, Bangladesh and Mauritius.