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Incorporated in 2009, Rossari Biotech Ltd is a manufacturer of textiles specialty chemicals. It provides customized solutions to the apparel, animal & poultry feed, and FMCG industries by offering a diversified product portfolio. Rossari Biotech operates in 18 countries including India, Bangladesh, Vietnam, and Mauritius.
As per the F&S Report published on 30th Sept 2019, it is the largest textile specialty chemical manufacturer in India. The business of the company can be classified into three main categories which are textile specialty chemicals; animal health & nutrition products; and home, personal care & performance chemicals. The company has 1,948 different products range under these three categories.
Most of the products of the company are manufactured in-house. It has a manufacturing unit located at Silvassa, Dadra & Nagar Haveli with an installed capacity of 100,000 MTPA. The company is also setting up a manufacturing unit at Dahej in Gujarat with an installed capacity of 132,500 MTPA. Rossari Biotech also has two R&D facilities in Silvassa and Mumbai locations to focus on new product development, formulations, and cost competitiveness. It has more than 194 distributors across India and 27 distributors spread in other 17 countries.
Competitive Strengths
1. Diversified product portfolio
2. Well-known textile specialty chemical manufacturer in India
3. In-house manufacturing unit
4. Strong R&D facility
5. Pan-India distribution network
Company Promoters:
Mr. Edward Menezes and Mr. Sunil Chari are the promoters of the company.
Company Financials:
| Particulars | For the year/period ended (₹ in Million) | ||||
|---|---|---|---|---|---|
| 31-Mar-20 | 31-Mar-19 | 31-Mar-18 | 31-Mar-17 | ||
| Total Assets | 4,715.15 | 2489.45 | 1649.50 | 1308.94 | |
| Total Revenue | 6,038.18 | 5171.24 | 3004.29 | 2605.97 | |
| Profit After Tax | 652.53 | 456.83 | 254.03 | 142.85 | |
Objects of the Issue:
The net proceeds of the Fresh Issue, i.e. Gross proceeds of the Fresh Issue less the Offer Expenses apportioned to the Company (“Net Proceeds”) are proposed to be utilised in the following manner:
1. Repayment/prepayment of certain indebtedness availed by the Company (including accrued interest);
2. Funding working capital requirements; and
3. General corporate purposes
Rossari Biotech IPO Details
| IPO Date | Jul 13, 2020 – Jul 15, 2020 |
| Issue Type | Book Built Issue IPO |
| Issue Size | 11,682,033 Eq Shares of ₹2 (aggregating up to ₹496.49 Cr) |
| Fresh Issue | [.] Eq Shares of ₹2 (aggregating up to ₹50.00 Cr) |
| Offer for Sale | 10,500,000 Eq Shares of ₹2 (aggregating up to ₹[.] Cr) |
| Face Value | ₹2 Per Equity Share |
| IPO Price | ₹423 to ₹425 Per Equity Share |
| Market Lot | 35 Shares |
| Min Order Quantity | 35 Shares |
| Listing At | BSE, NSE |
| P/E (x) | 33.81 |
| Market Cap (₹ Cr.) | 2207 |
Rossari Biotech IPO Tentative Date / Timetable
| Bid/Offer Opens On | Jul 13, 2020 |
| Bid/Offer Closes On | Jul 15, 2020 |
| Finalisation of Basis of Allotment | Jul 20, 2020 |
| Initiation of Refunds | Jul 21, 2020 |
| Credit of Shares to Demat Acct | Jul 22, 2020 |
| IPO Shares Listing Date | Jul 23, 2020 |
Rossari Biotech IPO Lot Size and Price (Retail)
| Application | Lots | Shares | Amount (Cut-off) |
|---|---|---|---|
| Minimum | 1 | 35 | ₹14,875 |
| Maximum | 13 | 455 | ₹193,375 |
Rossari Biotech IPO Promoter Holding
| Pre Issue Share Holding | 95.06% |
| Post Issue Share Holding | 73% |
Rossari Biotech IPO for NRI
Rossari Biotech Limited, the largest manufacturer of textile specialty chemicals in India is launching its IPO on 13th July 2020. The issue close date is 15th July 2020. The NRIs are allowed to subscribe to this IPO subject to certain rules and restrictions.
Rules and restrictions for NRI in Rossari Biotech IPO:
- NRIs can apply in IPO using ASBA form.
- The payment will be accepted only in Indian rupee or freely convertible foreign exchange.
- Eligible NRIs bidding on a repatriation basis should apply using blue colour Bid cum Application form meant for Non-Residents via the funds from the NRE or FCNR account.
- Eligible NRIs bidding on a non-repatriation basis should apply using white colour Bid cum Application Form meant for residents via the funds from the NRO account.
- Bids by Eligible NRIs for a bid amount of less than ₹200,000 would be considered under the Retail Category and the bid amount exceeding ₹200,000 would be considered under the Non-Institutional Category for the allocation purpose in the Offer.
Rossari Biotech IPO Investors Portion
- QIB: Not More than 50% of the offer
- NII: Not less than 15% of the offer
- Retail: Not less than 35% of the offer