Rossari Biotech IPO Review, Dates, Allotment, Size, Live Bid Details, GMP & RHP

Last Updated Date: Aug 30, 2023

Let’s have a detailed review of the company and analytics of the Rossari Biotech Limited IPO release date, IPO offer price, subscription, Rossari Biotech IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

The Promoters of this company are MR. EDWARD WALTER MENEZES AND MR. SUNIL SRINIVASAN CHARI. The lead manager to the issue is Axis Capital Limited, ICICI Securities Limited. The Registrar to this issue is Link Intime India Private Limited.

Listing Date of Rossari Biotech is July 23rd, 2020 – Check the Live Share Price of Rossari Biotech here –

Check LIVE IPO Performance – Rossari Biotech Share Price

Face Value	Rs 2
Price Band	Rs 423 – Rs 425
Listing At	BSE, NSE
Min. Order Quantity	35
Listing Date	Jul 23, 2020
Offer for Sale	10,500,000
Fresh Issue	Rs 50 Crores
P/E Ratio	33.81
Issue Size	11,682,033 Eq Shares at Rs 496.49 Crores

Rossari Biotech IPO Review & Ratings

IPO Ratings & Review
Criteria	Ratings
Industry Sentiments	7.4/10
Industry Ranking	7.1/10
Company Background	8.2/10
Company Reputation	7.7/10
Competitive Edge	7.2/10
Financial Statements	8.0/10
Popularity Index	7.6/10
Promoters Reputation	8.0/10
Retail Appetite	7.5/10
Top Brokers Review	8.1/10
Overall Ratings	7.5/10
Star Ratings	★★★★☆

Summary of Rossari Biotech IPO

Rossari Biotech IPO

They are one of the leading specialty chemicals manufacturing companies in India based on sales for Fiscal 2019 . They provide customized solutions to specific industrial and production requirements of their customers primarily in the FMCG, apparel, poultry and animal feed industries through their diversified product portfolio comprising home, personal care and performance chemicals; textile specialty chemicals; and animal health and nutrition products.

As a specialty chemical manufacturing company, they continuously monitor industry trends so as to ensure that their products continue to remain relevant and help their customers meet the evolving market demands. They are driven by technical innovation in formulations and applications of their products in order to provide specific and customized solutions to their customers.

From FY 2016-17 to FY 2019-2020, as per the Restated Financial Statements

In the six months ended September 30, 2019, Fiscal 2019, Fiscal 2018 and Fiscal 2017, they generated total revenue of Rs.2,797.66 million, Rs.5,171.24 million, Rs.3,004.29 million and Rs.2,605.97 million, respectively, EBITDA of Rs.506.26 million, Rs.776.28 million, Rs.426.34 million and Rs.239.92 million, respectively and net profit after tax of Rs.319.00 million, Rs.456.83 million, Rs.254.03 million and Rs.142.85 million, respectively.
They have been able to increase their total revenue from Fiscal 2017 to Fiscal 2019 at a compound annual growth rate of 41.07%, EBITDA at a compound annual growth rate of 79.87% and their profit after tax has increased at a compound annual growth rate of 77.83% over the same period.
They have reported Return on Net Worth 46.09%, 43.32%, 34.08% and 46.09% with a total debt to equity ratio of 0.45 for the six months period ended September 30, 2019, Fiscal 2019, Fiscal 2018 and Fiscal 2017, respectively, and a Return on Capital Employed of 22.44%, 34.68%, 50.93% and 38.65% for the six months period ended September 30, 2019, Fiscal 2019, Fiscal 2018 and Fiscal 2017, respectively.

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Rossari Biotech IPO Dates / Launch Date

The opening and the closing date of Rossari Biotech IPO is July 13, 2020 – July 15, 2020.

Rossari Biotech IPO Subscription

Day / Date	QIB	NII	RII	Total Subscription
1st Day – July 13	0.42x	0.12x	0.94x	0.61x
2nd Day – July 14	2.75x	4.35x	2.52x	3.02x
3rd Day – July 15	32.78x	122.45x	5.21x	38.21x
Shares Offered or Net Issue	2,335,294	1,751,471	4,086,765	8,173,530

Rossari Biotech IPO Allotment Status

Here, you can find the Allotment Status of this IPO. Allotment of Equity Shares pursuant to the Fresh Issue and transfer of the Offered Shares of the Promoter Selling Shareholders pursuant to the Offer for Sale to the successful Bidders. However, the Allotment status is not yet disclosed.

Rossari Biotech IPO Listing Date

Find the dates below on basis of allotment, refund, listing and more:

Basis of Allotment Finalization	Jul 20, 2020
Refunds Initiation	Jul 21, 2020
Credit of Shares to Demat Account	Jul 22, 2020
Share Listing Date	Jul 23, 2020

Rossari Biotech IPO Price Band / Cash Price

The face value of each share is Rs.2,and the cash price of the IPO is Rs 423 – Rs 425.

Rossari Biotech IPO Size

This Initial Public Issue of 11,682,033 Equity Shares of Rs.2 each for cash at a price of Rs 425 per equity share aggregating to 4964.9 Million.

Rossari Biotech IPO Share Offering

Fresh Issue: The Fresh Issue of [●] Equity Shares by their Company of Rs.2 each at a price of Rs 425 per equity share aggregating to Rs.1,500.00 Million,

Offer for Sale : Offer for sale of up to 10,500,000 Equity Shares by the Promoter Selling Shareholder aggregating up to Rs.[●] million.

Rossari Biotech Limited – Company Overview

Their Company was founded in 2009 by their Promoters, who are both career-technocrats cumulatively having over 45 years of experience in the specialty chemicals industry. They have focused on providing customised solutions to their customers in a cost and time efficient manner.

They believe their success is the result of sustained efforts over the decades in every aspect of their business, such as product innovation, process improvements for their customers’ production cycle, agile customised solutions, their sustainable eco-friendly portfolio of products and increased scale of operations.

Their qualified and experienced in-house R&D team focuses on the development of new products and formulations including collaborative product development with their customers to customize their products to customer expectations and end-user preferences, whilst simultaneously focusing on shorter lead-times and cost competitiveness.

Rossari Biotech Product Category

Their business is organized in three main product categories – (i) home, personal care and performance chemicals; (ii) textile specialty chemicals; and (iii) animal health and nutrition products. As on September 30, 2019, they had a range of 1,948 different products sold across the three product categories.

Rossari Biotech – Home, personal care and performance chemicals

They are the leading manufacturer of acrylic polymers in India and currently manufacture over 300 products for their customers in the soaps and detergent, paints, inks and coatings, ceramics and tiles, water treatment chemicals and pulp and paper industries. They also manufacture institutional cleaning chemical formulations for hospitality, facility management, airports, corporates, food service, commercial laundry, malls, multiplexes, educational sector, places of worship etc.

Rossari Biotech – Textile specialty chemicals

They provide specialty chemicals for the entire value-chain of the textile industry starting from fiber, yarn to fabric, wet processing and garment processing and as on September 30, 2019, manufactures and sales approximately 1,520 products for their customers in this product category.

They have differentiated their product portfolio by focusing on providing diversified and value added speciality chemicals to enhance hydrophilic properties, anti-microbial properties, flame retardant properties, fragrance, water repellents and UV absorbing properties of the textiles.

Rossari Biotech – Animal health and nutrition

They have also diversified into animal health and nutrition and currently supply poultry feed supplements and additives, pet grooming and pet treats including for weaning, infants and adult pets and currently manufacture over 100 products for their customers in this category.

cWe forayed into pet grooming sub-category pursuant to their acquisition of the ‘Lozalo’ brand and related trademarks, intellectual property and employees in Fiscal 2019.

Rossari Biotech Limited: Business strategies

Expand manufacturing capacity and increase production efficiency
Introduce new products and focus on green products which promote sustainability
Continue to focus on innovation and grow their business across customer segments
Increase wallet share with existing customers and continued focus to expand customer base
Expand their international operations
Inorganic growth through strategic acquisitions

Rossari Biotech Ltd – Financial Statements

On the basis of Standalone statement:

Amount (in INR & Million)
	31-Mar-20	31-Mar-19	Mar-18	31-Mar-17
Total Assets	4,715.15	2488.95	1649.07	1308.94
Total Revenue	6,038.18	5171.24	3004.29	2605.97
Total Expense	5,157.59	4537.32	2629.55	2418.86
Profit After Tax	652.53	456.83	254.03	142.85

Earnings per Equity Share (in Million)

Amount (in INR & Million)
	31-Mar-20	Mar-19	31-Mar-18	31-Mar-17
Basic	13.42	9.44	5.25	6.49
Diluted	13.23	9.44	5.25	6.49

Rossari Biotech IPO – Promoters

The Promoters of this company are:

MR. EDWARD WALTER MENEZES
MR. SUNIL SRINIVASAN CHARI

List of Related Parties (Key Managerial Personnel)

Mr. Sunil Chari, Managing Director
PARUL GUPTA, Company Secretary
Mr. Edward Menezes, Chairman
MANASI NISAL, Chief Financial Officer

Rossari Biotech IPO – Promoter Share Holding

Pre Issue Share Holding 95.06%
Post Issue Share Holding 73%

Rossari Biotech IPO Offer Details or Issue Details

Particulars	No. Of Equity Shares
Equity Shares Offered	Up to [●] Equity Shares, aggregating up to Rs.[●] million
Of which:
Fresh Issue	[●] Equity Shares, aggregating up to Rs. 500.00 million
Offer for Sale	Up to 10,500,000 Equity Shares, aggregating up to Rs.[●] million
Of which:
QIB Category	Not more than [●] Equity Shares
Of which:
Anchor Investor Portion	Up to [●] Equity Shares
Balance available for allocation to QIBs other than the Anchor Investor Portion	Up to [●] Equity Shares
Of which:
Available for allocation to Mutual Funds only (5% of the QIB Category (excluding Anchor Investor Portion)	[●] Equity Shares
Balance of QIB Portion for all QIBs including Mutual Funds	[●] Equity Shares
Non-Institutional Category	Not less than [●] Equity Shares
Retail Category	Not less than [●] Equity Shares
Equity Shares outstanding prior to the Issue	50,752,920 Equity Shares
Equity Shares outstanding after the Issue	[●] Equity Shares

Rossari Biotech IPO Issue Object

The net proceeds of the Fresh Issue, i.e. Gross proceeds of the Fresh Issue less the Offer Expenses apportioned to their Company (“Net Proceeds”) are proposed to be utilised in the following manner:

1. Repayment/prepayment of certain indebtedness availed by their Company (including accrued interest);

2. Funding working capital requirements; and

3. General corporate purposes.

In addition, they expect to achieve the benefit of listing of their Equity Shares on the Stock Exchanges.

The main objects and the objects incidental and ancillary to the main objects of their Memorandum of Association enables their Company to undertake the activities for which the funds are being raised in the Fresh Issue.

Rossari Biotech Limited: Competitive Strength

Diversified product portfolio addressing the needs of varied and long-standing customers across industries
Largest textile specialty chemical manufacturer in India
Extensive manufacturing and technical capabilities
Strong R&D capabilities with focus on innovation and sustainability
Wide sales and distribution network
Experienced Promoters with strong management team having domain knowledge
Proven track record of robust financial performance

Rossari Biotech IPO – Basis of the Offer Price

The Price Band will be determined by their Company and the Selling Shareholders, in consultation with the BRLMs, and the Offer Price will be determined by their Company, in consultation with the BRLMs, on the basis of the Book Building Process and the quantitative and qualitative factors as described below.

Qualitative factors are:

diversified product portfolio addressing the needs of varied and long-standing customers across industries;
largest textile specialty chemical manufacturer in India;
extensive manufacturing and technical capabilities;
strong R&D capabilities with focus on innovation and sustainability;
wide sales and distribution network;
experienced Promoters with strong management team having domain knowledge; and
Proven track record of robust financial performance.

Rossari Biotech IPO – Quantitative Factors

	Basic & Diluted EPS	RONW in %	NAV (Rs.)
31-Mar-17	6.49	23.05	–
31-Mar-18	11.56	34.08	–
*31-Mar-19	20.77	43.32	69.55

Price to Earnings (P/E) ratio in relation to Price band of Rs. per Equity Share

Particulars	P/E ratio
Highest	40.44
Average	25.76
Lowest	31.06

Rossari Biotech Limited: Competitive Peers

	Total Revenue (Rs. in million)	Face Value (Rs.)	P/E	EPS (Basic) (Rs.)	Return on Net Worth (%)	NAV per share (Rs.)
Rossari Biotech Limited	5,171.24	2	[●]	9.44**	43.32%	31.61**
Listed Peers
Aarti Industries Limited	47,076	5	25.90*	60.39	18.11%	313.23
Vinati Organics Limited	11,581	2	35.48	54.97	26.87%	204.56
Atul Limited	39,472	10	27.75	144.51	16.18%	892.35
Galaxy Surfactants Limited	27,677	10	25.76	53.87	21.78%	247.28
Fine Organics Industries Limited	10,802	5	40.44	44.44	34.44%	129.02

Rossari Biotech IPO Lead Managers

Lead Managers

Axis Capital Limited
Tel: (+ 91 22) 4325 2183
E-mail: rbl@axiscap.in
Website: www.axiscapital.co.in
Investor grievance E-mail: complaints@axiscap.in
Contact person: Ms. Simran Gadh
SEBI Registration No.: INM000012029ICICI Securities Limited
Maharashtra, India
Tel: (+91 22) 2288 2460
Email: rossari.ipo@icicisecurities.com
Website: www.icicisecurities.com
Investor Grievance E-mail: customercare@icicisecurities.com
Contact person: Mr. Arjun A. Mehrotra / Mr. Rupesh Khant
SEBI Registration No: INM000011179

Rossari Biotech IPO Registrar to Offer

Registrar to the Offer

Link Intime India Private Limited
C-101, 1st Floor, 247 Park
Lal Bahadur Shastri Marg, Vikhroli (West)
Mumbai 400 083, Maharashtra, India
Tel: (+91 22) 4918 6200
Email: rossaribio.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Person: Ms. Shanti Gopalkrishnan
SEBI Registration No: INR000004058

Rossari Biotech IPO – Other Details

Statutory Auditor – Axcelus Finserv Private Limited
Legal Counsel to the Company – Shardul Amarchand Mangaldas & Co
Bankers to the Company – AXIS BANK , ICICI BANK

Rossari Biotech IPO Review by Top 10 Stock Brokers

Top Stock Brokers Review	Company Reputation	Competitive Edge	Financial Statement	Popularity Index	Promoters Reputation
Angel Broking	7.5/10	7.4/10	8.5/10	8.1/10	7.1/10
Sharekhan	7.2/10	7.1/10	8.6/10	8.1/10	7.2/10
Kotak Securities	7.3/10	7.5/10	8.4/10	8.1/10	7.3/10
ICICI Direct	7.3/10	7.3/10	8.7/10	8.1/10	7.1/10
IIFL	7.5/10	7.2/10	8.8/10	8.0/10	7.1/10
Edelweiss	7.5/10	7.4/10	8.4/10	8.3/10	7.2/10
Zerodha	7.4/10	7.1/10	8.5/10	8.1/10	7.0/10
5Paisa	7.1/10	7.1/10	8.4/10	8.1/10	7.1/10
Karvy	7.4/10	7.3/10	8.2/10	8.1/10	7.1/10
Motilal Oswal	7.1/10	7.1/10	8.6/10	8.3/10	7.2/10