Rossari Biotech surges 18% in 2 days after Plutus Wealth acquires stake

The stock was trading at its highest level since its listing on July 23, 2020

Shares of Rossari Biotech shot up 5 per cent to Rs 859 on the National Stock Exchange (NSE) on Thursday after Plutus Wealth Management LLP acquired 3 lakh shares of the company at Rs 773.82 per share.

The stock has gained 18 per cent in the last two trading days. It was trading at its highest level since its listing on July 23, 2020. The market price of Rossari Biotech has more-than-doubled against its issue price of Rs 425 per share.

On Wednesday, September 2, Plutus Wealth Management LLP bought 300,000 equity shares of specialty chemicals maker at Rs 773.82 per share on the NSE, the bulk deal data shows. The name of sellers was not ascertained immediately.

Rossari Biotech raised Rs 496 crore thorough initial public offer (IPO), which had received massive investor interest with the IPO getting subscribed 79.37 times.

Rossari Biotech is into acrylic polymer business, which finds application into the home & personal care along with paints. The management highlighted that they have witnessed decent traction from the home & personal care products due to the Covid-19. The company has return ratios in the high thirties.

For the April-June quarter (Q1FY21), Rossari Biotech reported 419 basis points margin improvement primarily on account of higher realisations witnessed in certain product categories and is transitory in nature. So, going forward, the management expects to report normalized margins on an annual basis.

At 09:35 am, the stock was trading 2 per cent higher at Rs 834 on the NSE, as compared to 0.23 per cent rise in the Nifty 50 index. A combined 1.2 million equity shares have changed hands on the counter on the NSE and BSE, so far.