Rossari Biotech IPO to open on 13 July

Price band fixed at Rs 423-425 per share

Specialty chemicals maker Rossari Biotech will launch its initial public offer (IPO) on Monday, 13 July 2020. The price band for the IPO is set at Rs 423-425 per share. The issue will close on Wednesday, 15 July 2020.

The IPO comprises of a fresh issue of equity shares aggregating upto Rs 50 crore and an offer for sale of upto 1,05,00,000 equity shares by the selling shareholders.

In a pre-IPO placement, the company had raised Rs 99.99 crore in a private placement of 23,52,920 equity shares to various investors.

The net proceeds of the fresh issue and the pre-IPO placement are proposed to be utilised in repaying debt, funding working capital requirements and general corporate purposes.

Rossari Biotech is a specialty chemicals manufacturing company. Its business is organized in three main product categories: home, personal care and performance chemicals; textile specialty chemicals; and animal health and nutrition products. It operates in India as well as in 17 foreign countries including Vietnam, Bangladesh and Mauritius.

The company is also planning to venture into construction chemicals market and water treatment formulations market.

On a consolidated basis, Rossari Biotech generated total income of Rs 603.81 crore and a net profit of Rs 65.25 crore in fiscal 2020. The debt-equity ratio of the company stood steady at 0.23 across FY2018-2020, the company said.

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