Speciality chemicals maker Rossari Biotech Ltd made a stellar debut on the stock exchanges on Thursday, with its shares listing at a 58% premium to its initial public offering price and then climbing higher.
Shares of Rossari began trading on the BSE at Rs 670 apiece, up from the IPO of Rs 425 aipece. The stock touched a high of Rs 804 apiece before closing at Rs 742.35, clocking a gain of almost 75%.
The BSE’s benchmark Sensex closed 0.7% higher.
Rossari now commands a market capitalisation of Rs 3,855 crore against the Rs 2,206 crore valuation it had sought in the IPO.
The spectacular debut follows an IPO that was covered nearly 80 times with heavy demand from all categories of investors. This was the first IPO since India went into a lockdown in late March to control the Covid-19 pandemic.
Rossari is the second company to list on the main board of the stock exchanges this year. SBI Cards and Payment Services Ltd, which went public in March, had received a very strong response to its IPO but had a subdued listing.
Another company, Anthony Waste Handling Cell Ltd, the first waste management services company in India to attempt an IPO, withdrew the public issue in mid-March as it failed to secure enough subscription.
Rossari joins listed peers such as Aarti Industries Ltd, Vinati Organics Ltd, Atul Ltd as well as Galaxy Surfactants Ltd and Fine Organics Industries Ltd, both of which went public in 2018.
Rossari was originally incorporated as a partnership firm, Rossari Labtech, in March 2003. It makes specialty chemicals used as raw material in the FMCG, apparel, poultry and animal feed industries.
The company reported consolidated net profit of Rs 65.25 crore for the year ended March 2020 on operating revenue of Rs 603.81 crore. Its 2018-19 consolidated net profit was Rs 45.68 crore on revenue of Rs 517.12 crore.