Rossari Biotech dares to launch its IPO on March 18

March 12
15:33 2020

Specialty chemicals manufacturing company Rossari Biotech has decided to open its initial public offering on March 18 despite the rout seen in equity markets on the back of coronavirus fears.

The public issue consists of a fresh issue of Rs 50 crore and an offer for sale of up to 1.05 crore equity shares by promoters Edward Menezes and Sunil Chari.

Both Edward Menezes and Sunil Chari, who commenced the specialty chemicals business in 2003, will sell up to 52.5 lakh equity shares each through offer for sale. The issue will close for subscription on March 20.

At the time of filing red herring prospectus on March 7, Edward Menezes and Sunil Chari held 42.10 percent and 42.05 percent stake in the company.

Rossari Biotech provides customized solutions to specific industrial and production requirements of customers primarily in the FMCG, apparel, poultry and animal feed industries through diversified product portfolio comprising home, personal care and performance chemicals; textile specialty chemicals; and animal health and nutrition products.

It operates in India as well as in 17 foreign countries including Vietnam, Bangladesh and Mauritius.

The net proceeds of the fresh issue would be utilised towards repayment of loans and funding working capital requirements. Company will not receive any proceeds from the offer for sale.

Axis Capital and ICICI Securities are book running lead managers to the issue.

Equity markets have been falling consistently for third consecutive week, shedding 20 percent as investors worried about global growth after World Health Organisation declared the novel coronavirus outbreak a global pandemic. The virus, which spread to more than 120 countries, has already taken around 4,300 lives with more than 1.18 lakh infected cases.

The sentiment was so hurt that the grey market premium of SBI Cards and Payment Services already plunged more than 80 percent from its pre-IPO period and Antony Waste Handling Cell IPO subscription remained unchanged at 50 percent for third working day despite the company extended closing date to March 16 and revised price band to Rs 294-300 per share (from Rs 295-300 per share).

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