The IPO also comprises a secondary share sale of 10.5 million shares by promoters
Rossari Biotech, a specialty chemicals
company, will launch its Rs 500-crore initial public offering (IPO) on Monday, ending a four-month lull in the primary market. The last IPO
to hit the domestic market was that of SBI Cards and Payment Services in early March. The Covid-19 pandemic and the economic lockdown have forced many companies
to hold back their IPO
plans despite regulatory clearances. Rossari had intended to launch its IPO
in March only, but decided to postpone the plan.
The company on Wednesday conducted media and analyst meetings through the video-conferencing service Zoom.
Rossari has reduced the fresh issue component from Rs 150 crore to Rs 50 crore. It raised Rs 100 crore through a pre-IPO placement. The IPO also comprises of a secondary share sale of 10.5 million shares by promoters.
The price band for the IPO is Rs 423 to Rs 425 per share. At the top end, the IPO size works out to nearly Rs 500 crore and implies a post-IPO market cap of Rs 2,207 crore.
Following the IPO, the promoter holding in the company will fall from 95.06 per cent to 72.7 per cent.
The IPO will close on Wednesday. Axis Capital and ICICI Securities are the investment banks handling the issue.
manufactures chemicals used in the FMCG, apparel, poultry and animal feed industries. For the year-ended March 2020, the company had reported net profit of Rs 65crore on revenues of nearly Rs 603 crore.