This Article is From Jul 23, 2020

Rossari Biotech Lists At Rs 670, A Premium of 58%

Rossari Biotech: The stock of the speciality chemical maker listed at Rs 670 on BSE, a premium of 57.65 per cent over issue price of Rs 425 a share.

Rossari Biotech Lists At Rs 670, A Premium of 58%

Rossari Biotech's initial public offering was subscribed by more than 79 times.

Speciality chemical maker Rossari Biotech made a strong debut on the bourses this morning. The stock listed at Rs 670 on the BSE, a premium of 57.65 per cent compared to the issue price of Rs 425 a share. At 10:12 am, the shares of Rossari Biotech were trading at Rs 674.60, higher by Rs 251 or 58.65 per cent, on the BSE.

Rossari Biotech is the first company to list during the lockdown and the second to debut after SBI Cards & Payment Services IPO in March this year.

The IPO had an issue price of Rs 423-Rs 425 per share. At the upper end of the price band, the offer for sale is estimated at Rs 446.25 crore.

The offer included a fresh issue of Rs 50 crore shares and an offer of sale (OFS) of 1.05 crore shares. A total of 50 per cent of the IPO was reserved for qualified institutional buyers, 15 per cent was for non-institutional investors and remaining portion of 35 per cent was reserved for retail investors.

Rossari Biotech's IPO was subscribed by more than 79 times. In contrast, the IPO of SBI Cards, the credit card arm of the country's largest lender State Bank of India, was subscribed more than 22 times.

The proceeds from Rossari Biotech IPO will be utilised for repayment/prepayment of loans, funding working capital requirements and general corporate purposes.

The Mumbai-based Rossari Biotech is a specialty chemicals manufacturer which has diversified into animal health and nutrition, home, personal care and performance chemicals markets.