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Specialty chemicals maker Rossari Biotech gets SEBI approval for IPO
Photo Credit: Reuters

Rossari Biotech Ltd, which makes specialty chemicals, has received regulatory approval for its initial public offering.

The Securities and Exchange Board of India (SEBI) issued its final observations on Rossari Biotech’s draft prospectus for the IPO on February 20, according to information on the capital markets regulator’s website.

The public issue comprises a fresh sale of shares worth Rs 150 crore and a secondary market sale of 10.5 million shares by promoters Edward Menezes and Sunil Chari, according to the draft prospectus.

The overall IPO size is estimated at roughly Rs 700 crore ($97.4 million), two people aware of the matter had told VCCircle in December, when the company had filed the prospectus.

A successful IPO will see Mumbai-based Rossari Biotech join listed peers such as Aarti Industries Ltd, Vinati Organics Ltd, Atul Ltd and Galaxy Surfactants Ltd.

Axis Capital and ICICI Securities are the merchant bankers arranging the share sale. Axcelus Finserv Pvt. Ltd is the adviser to the overall offer.

The company, originally incorporated as a partnership firm in March 2003, makes specialty chemicals used as raw material in the fast-moving consumer goods, apparel, poultry and animal feed industries. Rossari’s customers include companies such as IFB Industries Ltd, Hindustan Unilever Ltd and Arvind Ltd.

Its product portfolio comprises home, personal care and performance chemicals; textile specialty chemicals; and animal health and nutrition products. The home and personal care segment accounted for 46% of its overall revenue for the six months ended September 2019 while textile speciality chemicals made up about 45%.

The company reported consolidated net profit of Rs 31.9 crore for the six months ended September 2019 on operating revenue of Rs 278.14 crore. Its consolidated net profit for 2018-19 was Rs 45.68 crore on revenue of Rs 516.21 crore.

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