Shares of Rossari Biotech rallied 9 per cent to Rs 1,199 on the BSE in intraday trade on Wednesday. This is also the stock's highest level since listing on the bourses on July 23 last year. It surpassed its previous high of Rs 1,145.65, hit on February 19.
Thus far in the month of April, the specialty chemicals company's stock has soared 16 per cent in the four trading days, after the company announced full commissioning of its Greenfield manufacturing facility at Dahej, Gujarat.
The Greenfield facility will have a total installed capacity 132,500 MTPA, enhancing the total capacity of Rossari by 2.1x to 252,500 MTPA. A strong upcoming pipeline of new product launches and new business lines within the four core chemistries should enable the Company to sustainably ramp-up utilization levels at the Dahej unit over the next 3-4 years, Rossari Biotech said in a press release.
Meanwhile, the company’s board, on March 23, gave a go-ahead to issue equity shares aggregating to Rs 300 crore on a preferential basis, subject to necessary approvals. The company said its board of directors approved the issuance of up to 3.01 million equity shares on a preferential basis and determined a floor price of Rs 996 per equity share or such a higher price, aggregating to Rs 300 crore.
The proposed issue will bring onboard high-quality and marquee shareholders of scale and repute. The funds from this issue, if approved, will further strengthen the company’s balance sheet profile and will also augment the financial flexibility to address medium-to-long-term growth prospects. The proposed investors include SBI Mutual Fund (through various schemes), Malabar Select Fund, Malabar India Fund, India Acorn Fund, Ramesh Siyani and Arpit Khandelwal, the company said in a separate exchange filing.
Rossari proposes to utilise the net proceeds to evaluate and invest in inorganic growth opportunities, within its core chemistries, with a view to diversify its product portfolio, expand the geographical reach and augment end-user industry applications. This will further enable the company to build a strong upcoming pipeline of new products, with impetus on sustainability and environment-friendliness, it said.