Rossari Biotech
Mainboard₹496 Cr issue
+57.65%
Listing gain over issue price
Issue size
₹496 Cr
1 lot at cut-off
₹14,875
Lot size
35shares
Open
13 Jul 2020
Close
15 Jul 2020
Allotment
20 Jul 2020
Listing
23 Jul 2020
Listing performance
Issue price
₹425
Listed at
₹670
Listing-day close
₹742.35
Latest price
₹414.70
Close on 23 Oct 2026
Listing gain
+57.65%
Return since issue
-2.42%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 13 Jul 2020 – 15 Jul 2020
- Listing date
- 23 Jul 2020
- Face value
- ₹2 per share
- Issue price
- ₹425 per share
- Lot size
- 35 shares
- Total issue size
- ₹496 Cr
- Market cap at offer price
- ₹2,207 Cr
- Promoter holding
- 95.06% → 73.00% pre-issue → post-issue
- ISIN
- INE02A801020
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Axis Bank Ltd.
- Registered office
- 201 A - B, 2nd Floor, Akruti Corporate Park,, L.B.S. Marg, next to GE Gardens,, Kanjurmarg (W), Mumbai 400 079, India, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 35,02,940 | — | — |
Application size
Minimum 35 shares per lot, in multiples, at ₹425
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 35 | ₹14,875 |
| Retail (max) | 13 | 455 | ₹1,93,375 |
| S-HNI (min) | 14 | 490 | ₹2,08,250 |
| S-HNI (max) | 67 | 2,345 | ₹9,96,625 |
| B-HNI (min) | 68 | 2,380 | ₹10,11,500 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
35,02,940
Anchor portion
₹149 Cr
at ₹425 per share
Valuation and performance
Valuation at offer price
₹425 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹2,207 Cr |
About Rossari Biotech
Rossari Biotech Limited is one of the leading specialty chemicals manufacturing companies in India based on sales for Fiscal 2019, providing customized solutions to specific industrial and production requirements of customers primarily in the FMCG, apparel, poultry and animal feed industries. The company operates through a diversified product portfolio and operates in India as well as in 17 foreign countries including Vietnam, Bangladesh and Mauritius. According to the F&S Report, as on September 30, 2019, the company is the largest manufacturer of textile specialty chemicals in India providing textile specialty chemicals in a sustainable, eco-friendly yet competitive manner. The company was incorporated as a partnership firm on August 25, 2001, converted to a joint stock company on August 10, 2004, and is listed on BSE and NSE since June 21, 2019.
Company Analysis
from RHPRossari Biotech Limited is a leading specialty chemicals manufacturing company in India providing customized solutions through home, personal care and performance chemicals, textile specialty chemicals, and animal health and nutrition products to industrial and consumer-centric sectors.
Rossari Biotech Limited is one of the leading specialty chemicals manufacturing companies in India based on sales for Fiscal 2019, providing customized solutions to specific industrial and production requirements of customers primarily in the FMCG, apparel, poultry and animal feed industries. The company operates through a diversified product portfolio and operates in India as well as in 17 foreign countries including Vietnam, Bangladesh and Mauritius. According to the F&S Report, as on September 30, 2019, the company is the largest manufacturer of textile specialty chemicals in India providing textile specialty chemicals in a sustainable, eco-friendly yet competitive manner. The company was incorporated as a partnership firm on August 25, 2001, converted to a joint stock company on August 10, 2004, and is listed on BSE and NSE since June 21, 2019.
specialty chemicalsFMCGtextileapparelpoultryanimal feedhome and personal careanimal health and nutrition
Objects of the Issue
- Repayment/prepayment of certain indebtedness availed by our Company (including accrued interest) ₹ 650.00 million p.21
- Funding working capital requirements ₹ 500.00 million p.21
- General corporate purposes p.21
- Repayment/prepayment of certain indebtedness availed by our Company (including accrued interest) ₹ 650.00 million p.87
- Funding working capital requirements ₹ 500.00 million p.91
- General corporate purposes Up to 25% of gross proceeds of Fresh Issue and Pre-IPO Placement p.86
Issue Structure
- Total Issue
- [●] Equity Shares, aggregating ₹ up to [●] million
- Fresh Issue
- [●] Equity Shares, aggregating up to ₹ 500.00 million (reduced from ₹ 1,500.00 million due to Pre-IPO Placement of ₹ 999.99 million)
- Offer for Sale
- Up to 10,500,000 Equity Shares, aggregating ₹ up to [●] million (comprising up to 5,250,000 Equity Shares aggregating up to ₹ [●] million by Mr. Edward Menezes and up to 5,250,000 Equity Shares aggregating up to ₹ [●] million by Mr. Sunil Chari)
- Price Band
- Price band ranging from a Floor Price of ₹ [●] per Equity Share to a Cap Price of ₹ [●] per Equity Share
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 2 each
Business Model
The company manufactures and supplies specialty chemicals and industrial enzymes to institutional customers following a business-to-business model for its home, personal care and performance chemicals and textile specialty chemicals product categories through its pan-India distribution network of over 204 distributors. Revenue from sale of HPPC and TSC products cumulatively constituted 90.52%, 90.00%, and 90.17% of revenue from operations for Fiscals 2020, 2019 and 2018, respectively. The company also sells animal health and nutrition products to retailers through distributors and has entered into a joint venture with BUZIL-WERK Wagner GmbH & Co. KG for institutional cleaning business.
Business Segments
Provides textile specialty chemicals in a sustainable, eco-friendly yet competitive manner; company is the largest manufacturer of textile specialty chemicals in India according to F&S Report
Manufactures and supplies home, personal care and performance chemicals to institutional customers in the FMCG industries
Manufactures and supplies animal health and nutrition products to retailers through distributors
Manufacture of ingredients used in household cleaners, detergents, and industrial and institutional cleaners
Production of ingredients for personal care products including skin care, hair care, cosmetic and oral care products
Manufacturing of chemicals used in textile processing and finishing
Production of chemicals used in construction applications
Manufacturing of chemicals for water purification and wastewater management
Manufactures specialty chemical products for soaps and detergents, paints, inks and coatings, ceramics and tiles, water treatment chemicals and pulp and paper industries; also includes institutional cleaning chemical formulations for hospitality, facility management, airports, corporates, food service, commercial laundry, malls, multiplexes, educational sector and places of worship
Provides specialty chemicals for the entire value-chain of the textile industry starting from fiber, yarn to fabric, wet processing and garment processing, with a focus on products that provide hydrophilic properties, anti-microbial properties, flame retardant properties, fragrance, water repellents and UV absorbing properties
Supplies poultry feed supplements and additives, pet grooming products and pet treats including for weaning, infants and adult pets; manufactures over 100 products in this category, with poultry feed products sold B2B and pet grooming/treats sold through retail shop owners via distributors
Manufacture and sale of specialty chemicals for textile industry
Manufacture and sale of home and personal care products
Manufacture and sale of animal health and nutrition products
Manufacture of institutional cleaning, hygiene and disinfection products through joint venture Buzil Rossari
Leading manufacturer of acrylic polymers in India with over 300 products for soaps and detergent, paints, inks and coatings, ceramics and tiles, water treatment chemicals and pulp and paper industries. Also manufactures institutional cleaning chemical formulations for hospitality, facility management, airports, corporates, food service, commercial laundry, malls, multiplexes, educational sector, places of worship. In advanced stages of expanding product portfolio to water treatment formulations, specialty formulation for breweries and dairies.
Provides specialty chemicals for the entire value-chain of the textile industry starting from fiber, yarn to fabric, wet processing and garment processing. Manufactures and sales approximately 1,543 products focused on providing diversified and value added speciality chemicals to enhance hydrophilic properties, anti-microbial properties, flame retardant properties, fragrance, water repellents and UV absorbing properties of textiles. Focus on providing eco-friendly sustainable chemical solutions.
Supplies poultry feed supplements and additives, pet grooming and pet treats including for weaning, infants and adult pets. Manufactures over 100 products in this category. Forayed into pet grooming sub-category pursuant to acquisition of 'Lozalo' brand and related trademarks, intellectual property and employees in FY2019. Almost all products manufactured in-house; pet treats manufactured through job-work contracts. Sells poultry feed products through business-to-business model and pet grooming and pet treat products to retail shop owners through distributors.
SWOT Analysis
Strengths
- • Manufacturing facilities concentrated in western India(p.51)
- • Established presence as specialty chemicals manufacturer(p.114)
- • Leading market position in textile chemicals(p.114)
- • Strong acrylic polymers manufacturing capability(p.114)
- • Experienced promoter leadership(p.95)
- • Largest textile specialty chemical manufacturer in India(p.146)
- • Leading manufacturer of acrylic polymers in India(p.147)
- • Diversified product portfolio across three categories(p.149)
- • Extensive manufacturing infrastructure with flexible production capabilities(p.151)
- • Strong R&D capabilities with recognized facilities(p.151)
- • Wide distribution network with 204+ distributors(p.152)
- • Experienced promoters with 45+ years combined industry experience(p.152)
- • Strong financial performance with high growth rates(p.153)
- • Established in-house R&D with government recognition(p.175)
- • No instances of time or cost overruns in operations(p.175)
- • Strong track record of operational excellence and industry recognition(p.175)
- • Diversified product portfolio across multiple segments(p.175)
- • Exclusive supply agreement with major FMCG player(p.175)
- • ISO certifications for quality and environmental standards(p.175)
- • International joint venture partnership with established chemical company(p.175)
- • No defaults or rescheduling of borrowings with financial institutions(p.175)
- • Leading position in textile specialty chemicals manufacturing(p.269)
- • Leading manufacturer of acrylic polymers in India(p.270)
- • Diversified product portfolio across three categories(p.269)
- • Strong revenue and profit growth trajectory(p.270)
- • Experienced promoters and management team(p.269)
- • Strong Return on Net Worth and Capital Employed(p.270)
- • Flexible manufacturing capabilities and capacity(p.270)
- • In-house R&D capabilities recognized by government(p.271)
Weaknesses
- • High borrowing costs dependent on India's sovereign rating(p.51)
- • Significant outstanding debt(p.88)
- • Geographic concentration risk in western India(p.51)
- • Increased compliance burden post-listing(p.54)
- • High dependence on acrylic acid as primary raw material(p.162)
- • Raw materials constitute majority of production costs(p.162)
- • Limited presence in active ingredients segment(p.148)
- • Capacity underutilization in Fiscal 2020(p.151)
- • Concentration of business with limited major customers creates dependency(p.175)
- • Single manufacturing facility at Silvassa during majority of operating period(p.175)
- • Significant increase in borrowings during the reporting period(p.235)
- • Dependence on limited number of key customers(p.270)
- • No long-term supply agreements with major customers(p.270)
- • Manufacturing facility concentration(p.270)
- • Dependence on few raw materials(p.272)
- • Reliance on raw materials linked to crude oil prices(p.272)
- • No long-term agreements with raw material suppliers(p.272)
- • Sub-optimal capacity utilization in FY2020(p.270)
- • Significant dependence on a few major institutional customers in TSC and HPPC product categories(p.297)
- • Heavy capital expenditure requirements for manufacturing facility setup, creating cash flow pressure(p.294)
- • Exposure to variable interest rates on borrowings with lack of assurance on hedging effectiveness(p.296)
Opportunities
- • Growing Indian specialty chemicals market(p.111)
- • Rising demand for green/sustainable chemicals(p.112)
- • Expansion of home and personal care market in India(p.120)
- • Government support for manufacturing through Make in India(p.107)
- • India as manufacturing hub for specialty chemicals(p.110)
- • Strong urbanization and rising per capita income driving demand(p.115)
- • Global specialty chemicals market growing at 5.4% CAGR to USD 308 billion by 2023(p.148)
- • Indian specialty chemicals market growing at 11.6% CAGR to USD 13.3 billion by 2023(p.148)
- • Expansion of manufacturing capacity with Dahej facility(p.154)
- • Growth in export markets Vietnam and Bangladesh(p.150)
- • Opportunity in green and sustainable chemistry products(p.148)
- • Strategic expansion into new product segments and markets(p.147)
- • Increased wallet share with existing customers(p.155)
- • Inorganic growth through strategic acquisitions(p.156)
- • Expansion into personal care segment with subsidiary(p.175)
- • Geographic expansion with new manufacturing facility at Dahej(p.175)
- • Expansion into animal health and nutrition market segment(p.175)
- • Capacity expansion through capital work in progress(p.207)
- • Expansion of installed production capacity at Dahej(p.270)
- • Growth in HPPC product category(p.270)
- • Leveraging cross-selling opportunities with key customers(p.271)
- • Expansion of international markets(p.271)
- • Growth in animal health and nutrition categories(p.272)
- • Direct consumer sales through digital platforms(p.270)
Threats
- • Risk of epidemic/pandemic disruption to operations(p.51)
- • Volatility in Indian financial markets from global contagion(p.51)
- • Risk of India's sovereign downgrade affecting capital access(p.52)
- • Evolving regulatory environment and tax law uncertainty(p.52)
- • Macroeconomic slowdown risks(p.51)
- • Foreign exchange volatility impact on equity value(p.53)
- • Illiquid market for newly listed shares(p.53)
- • Volatility in raw material prices, particularly acrylic acid(p.162)
- • Highly fragmented and competitive textile chemicals market with 500+ players(p.166)
- • Strong presence of large MNCs in specialty chemicals(p.166)
- • Weak enforcement of environmental norms favoring small unorganized competitors(p.166)
- • COVID-19 pandemic impact on business operations(p.149)
- • Intense competition from unorganized sector targeting price-sensitive customers(p.166)
- • Dependence on raw material sourcing and input price volatility(p.209)
- • Currency and foreign exchange fluctuation risks in international business(p.212)
- • Competition in specialty chemicals and FMCG ingredient sectors(p.214)
- • Regulatory compliance and quality standard maintenance requirements(p.175)
- • Intense competition in HPPC category from multinational corporations(p.273)
- • Intense competition in textile chemicals from large and small players(p.273)
- • Pricing pressure from cost-conscious customers(p.273)
- • Volatile crude oil prices affecting raw material costs(p.272)
- • Risks of raw material supply interruptions(p.272)
- • COVID-19 pandemic impact on business operations(p.273)
- • Risks associated with Dahej facility expansion(p.273)
- • Large unorganized textile market with price-sensitive customers(p.273)
- • Foreign exchange rate volatility on imported raw materials denominated in USD and Euro(p.296)
- • Credit risk exposure from counterparty defaults, particularly trade receivables(p.297)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Edward Menezes | Promoter | 42.10% | — |
| Mr. Sunil Chari | Promoter | 42.05% | — |
| Mr. Edward Menezes | Promoter | 42.10% | [●] |
| Mr. Sunil Chari | Promoter | 42.05% | [●] |
| Edward Menezes | Promoter | — | — |
| Sunil Chari | Promoter | — | — |
| Mr. Edward Menezes | Promoter/Executive Chairman | 42.10% | — |
| Mr. Sunil Chari | Promoter/Managing Director | 42.05% | — |
| Edward Menezes | Chairman/Promoter | — | — |
| Sunil Chari | Managing Director/Promoter | — | — |
| Mr. Edward Menezes | Promoter/Selling Shareholder | — | — |
| Mr. Sunil Chari | Promoter/Selling Shareholder | — | — |
Leadership
Mr. Rajesh V. Masrani · Chairman & Managing Director
Mr. Ashok V. Masrani · Executive Director
Mr. Bharat B. Kshatriya · Non-Executive Director
Mr. Ashish Kacholia · Independent Director
Mrs. Girija Sant · Independent Director
Mr. Edward Menezes · Executive Chairman
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Rossari Biotech IPO FAQs
What is the lot size of Rossari Biotech IPO?
The minimum lot size of Rossari Biotech IPO is 35 shares. One lot costs ₹14,875 at the cut-off price.
When does Rossari Biotech IPO open and close?
Rossari Biotech IPO opened for subscription on 13 Jul 2020 and closed on 15 Jul 2020.
What is the listing date of Rossari Biotech IPO?
Rossari Biotech IPO listed on 23 Jul 2020.