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Specialty Chemicals maker Rossari to unlock IPO market

MUMBAI, July 8, 2020: Marking the reopening of the IPO market after the COVID-triggered lockdowns, Rossari Biotech Limited, a leading specialty chemicals manufacturer focusing on home, personal care and performance chemicals will launch its initial public offering on Monday, July 13, 2020. The issue, at a price band of ₹ 423 – ₹ 425 per Equity Share, will close on Wednesday, July 15, 2020.

Bids by anchor investors shall be submitted, and allocation to them be will be completed, on July 10, 2020.

As mentioned in the red herring prospectus the Company raised ₹ 99.99 crore in a pre-IPO private placement of 2,352,920 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. The size of the fresh issue of up to ₹ 150 crores has been reduced by ₹ 99.99 crores pursuant to the Pre-IPO Placement. Thus, the size of the fresh issue stands at ₹ 50 crores.  

The total proceeds are proposed to be utilized to repay or prepay borrowings of ₹ 65 croes, to fund its working capital requirements of ₹ 50 crores, apart from and towards general corporate purposes. The Company will not receive any proceeds from the Offer for Sale.

Axis Capital Limited and ICICI Securities Limited have been appointed as the book running lead managers to the Offer and Axcelus Finserv Private Limited was appointed as advisor to the Offer. The Equity Shares offered through the RHP shall be listed on NSE and BSE. Link Intime India Private Limited is the registrar to the Offer.

Additionally, in fiscal year 2020, the Company generated total revenues of ₹ 603.81 crores and a net profit after tax of ₹ 65.25 crores. Over the last 3 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 fiscal years 2018-2020

Founded in 2009, Rossari Biotech Limited is one of the leading specialty chemicals manufacturing companies in India based on sales for Fiscal 2019 (Source: F&S Report), providing customized solutions to specific industrial and production requirements of its customers primarily in the FMCG, apparel, poultry and animal feed industries through their diversified product portfolio comprising home, personal care and performance chemicals; textile specialty chemicals; and animal health and nutrition products.

The Company operates in India as well as in 17 foreign countries including Vietnam, Bangladesh and Mauritius. According to the F&S Report, as on September 30, 2019, Rossari Biotech Limited is the largest manufacturer of textile specialty chemicals in India providing textile specialty chemicals in a sustainable, eco-friendly yet competitive manner. As a manufacturer of specialty chemicals, the Company focuses on functionality and application of their products which form a key ingredient to its customers’ manufacturing and industrial processes.

Pic caption: Edward Menezes-Executive Chairman and Sunil Chari - Managing Director, Rossari Biotech Limited.

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