Stocks

Rossari Biotech IPO subscribed 60% on first day of bidding

PTI New Delhi | Updated on July 13, 2020 Published on July 13, 2020

The initial public offer of specialty chemicals manufacturer Rossari Biotech was subscribed 60 per cent on the first day of bidding on Monday.

The IPO received bids for 49,30,030 shares against the total issue size of 81,73,530 shares.

The initial public offer comprises a fresh issue of ₹50 crore and an offer for sale of over one crore equity shares including anchor portion of 35,02,940 equity shares.

Price range for the offer has been fixed at ₹423-425 per share. At the upper end of price band, the IPO size is about ₹496 crore.

Qualified Institutional Buyer (QIB) portion was subscribed 41 per cent, non-institutional investors 11 per cent and retail investors 92 per cent.

The company has raised ₹149 crore from anchor investors.

Rossari Biotech’s initial share-sale ended four months of inactivity in the IPO markets. SBI Cards & Payment Services was the last company to float IPO in March.

Net proceeds from the issue will be utilised for funding working capital requirements, repaying certain debt availed by the company and for general corporate purposes.

The equity shares will be listed on the NSE and BSE.

The company, which 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.

Axis Capital and ICICI Securities are the managers to the offer.

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Published on July 13, 2020
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