According to market sources, the IPO will be worth around Rs700cr, comprising a fresh issue of Rs150cr, apart from an Offer for Sale (OFS) of up to 1.05cr shares by the promoting shareholders.
Axis Capital Limited and ICICI Securities Limited have been appointed as the BRLMs for the share sale.
The equity shares, of face value Rs2 each, will be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange) BSE.
The company intends to utilize the net proceeds towards repayment/prepayment of certain indebtedness availed by Rossari Biotech, funding working capital requirements and general corporate purposes.
The DRHP states that the Mumbai based company, in consultation with the Book Running Lead Managers (BRLMs), may consider a private placement of equity shares aggregating up to Rs100cr. If the PRE-IPO placement is undertaken, the amount will be reduced from the fresh issue.
Rossari Biotech is one of the leading speciality chemicals manufacturing companies in the country based on sales for Fiscal 2019, providing customized solutions to specific industrial and production requirements to its customers primarily in the FMCG, apparel, poultry and animal feed industries through its diversified product portfolio comprising home, personal care and performance chemicals, textile speciality chemicals and animal health and nutrition products.
The company focuses on providing eco-friendly sustainable chemical solutions to its customers which either replaces the highly polluting chemicals being used by customers or reduces the impact of environmental pollution by suitably modifying the overall industrial process.
In the six months ended September 30, 2019, and Fiscal 2019, the company generated total revenue of Rs279.76cr and Rs517.12cr respectively, EBITDA of Rs50.62cr, Rs77.63cr respectively.