Rossari Biotech receives SEBI approval for IPO
Rossari Biotech receives SEBIs approval for IPO
Chennai, February 25, 2020: Rossari Biotech, a leading speciality chemical manufacturer focusing on home and personal care and performance chemicals received SEBIs approval vide their observation letter issue on Feb 20, 2020. The company had filed its DRHP with SEBI on December 18, 2019.The company seeks an fresh issue of 150 crs and OFS of upto 1,05,00,000 equity shares of face value Rs. 2 each according to the DRHP filed with SEBI. As per market sources, IPO issue size will be approximately Rs. 700 crs.
Founded in 1996, Rossari Biotech is one of the leading specialty chemicals manufacturing companies in the cou ntry based on sales for Fiscal 2019, a pioneering force in the indian specialty chemica ls market they provide cus tomized solutions to specific industrial and production requirements of their customers primarily in the FMCG (home care & personal care), apparel, poultry and animal feed industries through their diversified product po rtfolio comprising of home, personal care and performance chemicals, textile specialty chemicals and animal health and nutrition products
As per FY19 figures, Rossari’s revenue from sale of home, personal care and performance products and textile chemicals constituted 37.81% and 52.18% of the total revenues respectively. It recently diversified into the ani mal health and nutrition segment pursuant to their acquisition of Lozalo. Between FY17-19 the company’s total revenues have increased at a CAGR of 41.07%
Axis Capital Limited and ICICI Securities Limited have been appointed as the BRLMs for the share sale.
Rossari Biotech manufactured and supplied home, personal care and performance chemicals to over 284 custo mers as on Septem ber 30, 2019. Some of the significant customers for its home, per sonal care and performance chemical products category include RSPL Limited (Ghadi detergent), IFB Industries Limited, Hindustan Unilever Limited, Panasonic India Private Limited, BSH Household Appliances Manufacturing Private Limited, CICO Technologies Limited, Rentokil Initial Hygiene India Private Limited and Millennium Papers Private Limited.
The company also manufactured and supplied textile specialty chemical products to 335 customers as on Sept ember 30, 2019 in over 15 countries. Some of the significant customers for its textile specialty chemical prod ucts category include Arvind Limited, Raymond Limited, Ashnoor Textile Mills Limited, Bhaskar Industries Pri vate Limited, European Textile Chemical Corporation and Shahi Exports Private Limited.
Rapid industrialization in India is expected to drive the demand for specialty chemicals. APAC which estimates to grow at the fastest rate between 6-7% , dominates the markets with a share of 44% owning to the huge custo mer base, leading to high demand. There is a growing trend in the chemicals industry to shift towards sustaina ble chemistry due to the tightening of environmental norms and globally its expected to grow at a CAGR of 10.5 % during 2019-2023.