Rossari Biotech Closes 75% Higher On Stock Market Debut

Rossari Biotech Ltd., which concluded its initial public offering last week, closed 75% higher on the first day of trading in the stock markets.

The textile and specialty chemical maker’s stock listed at Rs 670 apiece on the BSE. The issue price was set at Rs 425 a share. The stock then rose further to close at Rs 742.35 apiece—almost 75% higher than the issue price.

The company's nearly Rs 500-crore maiden offer was subscribed 79 times on the final day of bidding, according to data available on the exchanges. Its promoter shareholding has now fallen to 73% from 95%.

Incorporated in 2009, Rossari focuses on home and personal care, performance chemicals, textile specialty chemicals, and animal health and nutrition products. As on May 31, it had a range of 2,030 different products, which it sells across its three main product categories—animal health and nutrition; home, personal care and performance products; and textile specialty chemicals.

The company manufactures most of its products in-house from its facility at Silvassa, union territory of Dadra and Nagar Haveli, which has a total capacity of 120,000 million tonnes per annum. The company is also setting up another manufacturing unit at Dahej, Gujarat with a proposed capacity of 132,500 MTPA.

Some key highlights from an interaction with the company:

• It expects a growth rate of 15% in the ongoing financial year.
• Industry outlook for personal home care and performance chemicals is bright for the company.
• Sanitiser business has done very well compared to last year.
• Textile business will be back to budgeted levels once things return to normal.
• It will look to grow animal health and nutrition business now that it's debt-free and cash rich.
• Dahej facility likely to be commissioned in FY22.
• Targeting RoCE of 25% and hopes to remain in that range.

Watch the full interview with Rossari Biotech's Executive Chairman Edward Menezes and Managing Director Sunil Chari here: