Skip to main content

Rossari Biotech IPO

Long await of IPO period is over with specialty chemical company Rossari Biotech filing an IPO after SBI card the IPO is second to be launched in the country amid pandemic. The issue opens for the public on July 13 and will close on July 15 with the listing date set as 23 July. IPO can be applied online on the broker website Zerodha or through net banking.

A Benchmark name in the field of specialty chemical sector

Incorporated in 2009, Rossari Biotech Limited is a well-known manufacturer of textiles specialty chemicals. Providing customized expertise solutions to the apparel, animal &
poultry feeds FMCG industries by offering a diversified product portfolio.
Rossari Biotech operates globally in 18 countries including India, Bangladesh, Vietnam, and Mauritius.

As per the S&P Report published on 30th March 2020, it is one of the largest textile specialty chemical manufacturers in India. The business model 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. Having 2,458 different products range under these three categories.

In house state of art production line up of the company is manufactured laying emphasis on increased productivity.
The manufacturing unit is located at Silvassa, Dadra & Nagar Haveli with an installed capacity of 100,000 MTPA.
With the establishment of the manufacturing unit at Dahej in Gujarat with an installed capacity of 132,500 MTPA company has great business operations.
Rossari Biotech also has two facilities in Pune and Mumbai locations to focus on new product development, research formulations, and cost competitiveness

As of July 10 company has more than 294 distributors across India and 27 distributors spread over 18 countries.

Competitive Core Strengths

  1. wide-ranging product portfolio
  2. notable textile specialty chemical manufacturer in the Republic of India
  3. In-house producing unit
  4. glorious R&D facility
  5. Pan-India diverse distribution network

The objective of the Initial Public Opening (IPO)

Issue of capital Gross proceeds of the Fresh Issue less the Offer
Expenses of the Company (“Net Proceeds”) are proposed to be utilized as listed below :

  1. Repayment/prepayment of certain indebtedness availed by the Company (including accrued interest)
  2. Funding working capital requirements; and
  3. General corporate purposes

Peer Comparison

As per offering paper, HDFC Securities has displayed Aarti Industries, Vinati Organics, Atul Ltd., Galaxy Surfactants and Fine Organics as its listed peers that are currently trading at a P/Es of around 30.89, 31.09, 21.25, 31.32 and 35.25 (as on 10th July 2020) respectively. Which indicates the company offers good valuation in comparison to its peer.

Rossari Biotech Financial Statement

Rossari Biotech Financial Statement

Rossari Biotech

Profit And Loss

Rossari Biotech Profit and Loss

Rossari Biotech IPO Ratings

Looking At the growing chemical market place in the country, Rossari Biotech is a strong BUY Recommendation by financial bodies.

  • Anand Rathi Capital- Subscribe
  • Angel Broking ltd – Subscribe
  • Axis Capital – Subscribe
  • KR Chauksey research – Subscribe
  • Choice Equity Broking Pvt Ltd – Subscribe for Long Term
  • Sudip Davda Investments – Subscribe for Long Term
  • Kotak Securities – Subscribe

For more news related to IPO market follow Investo Lingo

Naman Sharma

Equity Trader ,Derivative Analyst, and Crpyto consultant ,Block Chain researcher, like watching football and listening pop culture music.travelling and photography are part of hobbies.

Leave a Reply