Rossari Biotech IPO Subscribed 43% On Day 1. Should You Invest?
Rossari Biotech IPO News: Mumbai-based Rossari Biotech's initial public offer (IPO) worth Rs 496 crore was subscribed over 43 per cent on Monday, the first day of issue. By the end of the day, 35,43,960 bids received against the total issue size of 81,73,530 shares, marking a subscription of 43.39 per cent, according to data from National Stock Exchange (NSE). The subscription window for the Rossari Biotech IPO will remain open from 10 am to 5 pm on Tuesday and Wednesday.
Rossari Biotech, a specialty chemicals manufacturer, plans to raise up to Rs 496.25 crore, through a mix of fresh issue and an offer for sale (OFS). Rossari Biotech's management plans to utilise the capital raised for repaying/prepaying debt of Rs 65 crore and supplement future working capital requirements of Rs 50 crore.
The Rossari Biotech IPO is the first public offer to hit the domestic capital markets since March, when the IPO of State Bank of India's credit card arm, SBI Cards & Payment Services, was subscribed 22.45 times.
Eligible investors can apply for Rossari Biotech shares under the IPO at a price of Rs 423-Rs 425 in lots of 35. Rossari Biotech shares will be listed on stock exchanges NSE and BSE.
Should You Subscribe To Rossari Biotech IPO?
Brokerage Emkay has a "subscribe" call on the Rossari Biotech IPO. "The new capacity expansion at Dahej should strengthen its portfolio in the high-growth HPPC (home, personal care and performance chemicals) segment to serve its wide customer base," Emkay said in a note.
"Customised product offering, fungible capacities and rapid finished product conversion rate remain the key differentiators for the company. At the upper price band of Rs425, the stock is available at 33x FY20 earnings," it added.