Speciality chemical maker Rossari Biotech receives Sebi's approval for IPO

Rossari Biotech, speciality chemical maker with focus on home and personal care products, has received Sebi's go-ahead to float an initial public offering (IPO).

The company, which had filed its draft IPO papers with the markets watchdog in December 2019, obtained its final observations on February 20.

The IPO consists of fresh issuance of shares to the tune of Rs 150 crore and sale of more than 1 crore equity shares by the company's promoters through offer-for-sale route, according to the draft prospectus filed with the regulator.

Market sources said the IPO size will be worth Rs 700 crore.

The regulator's observations are necessary for any company to launch public issues such as initial public offer, follow-on public offer and rights issue.

As per the draft papers, net proceeds from the issue are proposed to be utilised for funding 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 NSE and BSE.

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.