MUMBAI: Specialty chemicals manufacturer Rossari Biotech Limited will launch its initial public offering (IPO) on 13 July with a price band of ₹423- ₹425 per share. The three-day share sale, which will close on 15 July, seeks to raise nearly ₹496 crore.
The market for IPO, which has been in a covid-induced dormancy for more than four months, is expected to break the jinx with the issue of the Mumbai-based company.
The proceeds from the fresh issue and the pre-IPO placement will be utilised to repay or prepay borrowings of ₹65 crore, fund its working capital requirements of ₹50 crore and for general corporate purpose, it said in a press statement. The company will not receive any proceeds from the offer for sale.
As mentioned in the red herring prospectus (RHP), the company raised ₹99.99 crore in a private placement of 22.5 lakh equity shares to various investors including Malabar India Fund Limited, 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 Limited.
Not less than 15% of the offer is available for allocation on a proportionate basis to non-institutional investors and not less than 35% of the offer is for allocation to retail individual investors in accordance.
Axis Capital Limited and ICICI Securities Limited are the book running lead managers to the offer. Axcelus Finserv Private Limited is the adviser to the offer.
In fiscal 2020, the company's total revenues stood at ₹603.81 crore and net profit at ₹65.25 crore. Over the last three 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 fiscals 2018-2020.
The company’s specialty chemicals are used in soaps and detergents, paints, inks, tiles, papers, natural and man-made textiles. It also makes products like shampoos, powders, sprays and creams for pets and nutrition items for poultry. It plans to venture into the construction chemicals market and water treatment formulations market. It operates in India as well as 17 foreign countries, including Vietnam, Bangladesh and Mauritius.