Rossari Biotech to launch Rs 500-crore IPO soon
Going by the draft papers, Rossari Biotech's IPO comprises fresh issuance of shares to the tune of Rs 150 crore and sale of more than 1 crore equity shares by the company's promoters through offer-for-sale route.
New Delhi: After a lull of nearly four months, IPO market is likely to see some buzz next week with the launch of specialty chemicals manufacturer Rossari Biotech's Rs 500-crore initial share-sale, market sources said.
This would be the first company to brave the current volatile markets.
There has been a lull in the IPO market since the initial share-sale of SBI Cards & Payment Services which closed on March 5. In fact, many companies that had received Sebi's go-ahead deferred their issue to a later date.
Going by the draft papers, Rossari Biotech's IPO comprises fresh issuance of shares to the tune of Rs 150 crore and sale of more than 1 crore equity shares by the company's promoters through offer-for-sale route.
It raised Rs 100 crore in a pre-IPO placement in March, sources said.
The shares were offered at Rs 425 apiece and the IPO price is expected to be in the same range. At this price, the company will have a market capitalization of Rs 2,200 crore, they added.
Net proceeds from the issue are proposed to be utilised for funding working capital requirements, repaying certain indebtedness availed by the company and for general corporate purposes.
Axis Capital and ICICI Securities are the merchant bankers for the share-sale. The equity shares will be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
The company, which had filed its draft papers with Sebi in December 2019, received clearance from the regulator in February to launch the IPO.
Rossari Biotech is a specialty chemicals manufacturing firm with focus on home and personal care, performance chemicals, textile specialty chemicals and animal health and nutrition products. Apart from India, it has operations in 17 countries including Vietnam, Bangladesh and Mauritius.
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