Rossari Biotech

IPO Details

Here is snap shot of the IPO

• Issue Opening – July 13th 2020
• Issue Closing – July 15th 2020
• Price Band – INR 423 to INR 425

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Business Details

Rossary Biotech is a Chemical sector company. It is in business of Specialty chemicals to be precise. The Corporate headquarters is based in Mumbai. It has one upcoming manufacturing site in Dahej and other running site in Silvassa.

Below are the product categories from this Company

• Home Personal Care and Performance Chemicals
  • Soaps and Detergents
  • Ink, Paints and Coatings
  • Ceramics and Tiles
  • Pulp and Paper
  • Cement
  • Water Treatment
• Textile Specialty Chemicals
  • Cotton
  • Polyester
  • Acrylic
  • Wool
  • Silk
  • Nylon
  • Functional Finishes
  • Denim
  • Printing
  • Sustainable Solutions
• Animal Health and Nutrition
  • Pet Care
  • Poultry Nutrition

It is one of the largest manufacture of Textiles chemicals in India. The Home care segment is growing strong in recent times due to strong demand of home products.

Financial Snapshot

Below is the Financial Snapshot of the Company.

• Year 2020
• Total Revenue 6038
• Total Expenditure 4954
• Profit After Tax 652.53
• Dividend Percent 25
• Earning per share EPS 13

Below are some useful information about it

• Book Value INR 56
• ROCE 38%
• EBITDA Margin % 17

IPO Subscription Status

Below are the subscription status of the IPO

• QIB – 85.26 times
• NII – 239.83 times
• RII – 7.23 times
• Employee – times
• Others – times
• Total Subscription is 79.37 times

Below is meaning of the Key terms used above

• QIB is (Institutes or Mutual Funds like HDFC AMC etc)
• NII is (People bidding for more than 2 lakhs in IPO application)
• RII is (People bidding for less than 2 lakhs)
• Employee and Others are Reserved Quota Investors.

My Opinion

The IPO subscription status of the Company is very good. This will ensure that it has bumper response on the listing day. Chemicals and specially specialty chemicals sector has performed well in past.

Based on the IPO subscription details it is good idea to apply for the IPO. You can make decent profit on the listing date. The close to 80% subscription rate makes it attractive IPO application candidate.

The house hold product segment should perform well in light of Corona however the Textile segment will under perform. The good performance in housing sector due to demand of preventive and cleansing products may have pushed the subscription rate for it.