Rossari Biotech IPO Subscribed 60% On First Day Of Bidding
Elevators travel next to electronic boards displaying stock figures at the National Stock Exchange of India Ltd. (NSE) building in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Rossari Biotech IPO Subscribed 60% On First Day Of Bidding

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The initial public offering of Rossari Biotech was subscribed 60% on the first day of bidding on Monday, data from the National Stock Exchange showed Monday.

The Rossari Biotech IPO received bids for 49,30,030 shares against the total issue size of 8,173,530 shares. The portion of shares reserved for qualified Institutional buyers was subscribed 41%, non-institutional investors 11% and retail investors 92%. The company has raised Rs 149 crore from anchor investors.

According to the red herring prospectus filed with the capital markets regulator, the IPO comprises a fresh issue of shares worth Rs 50 crore and an offer for sale of more than one crore equity shares, including an anchor portion of 3,502,940 equity shares. The IPO is valued at Rs 496 crore at the upper end of the price band of Rs 423-425.

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

Rossari Biotech's initial share sale has ended four months of inactivity in India’s IPO market. SBI Cards & Payment Services Ltd. was the last company to float such an offering 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.

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.

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