Rossari Biotech gets SEBI approval for IPO

Rossari Biotech Ltd, a specialty chemicals maker has received a regulatory approval for its Initial Public Offering (IPO).

Securities and Exchange Board of India (SEBI) issued its final observations on Rossari Biotech’s draft prospectus for the IPO on February 20, according to information on the capital market regulator’s website.

The public issue comprises a fresh sale of shares worth Rs 150 crore and a secondary market sale of shares by promoters Edward Menezes and Sunil Chari.

A successful IPO will see Mumbai-based Rossari Biotech join listed peers such as Aarti Industries Ltd, Vinati Organics Ltd, Atul Ltd and Galaxy Surfactants Ltd.

Axis Capital and ICICI Securities are the merchant bankers for the issue. Axcelus Finserv Pvt Ltd is the adviser to the overall offer.

The company, originally incorporated as a partnership firm in March 2003, makes speciality chemicals used as raw material in the fast-moving consumer goods, apparel, poultry and animal feed industries. Rossari’s customers include companies such as IFB Industries Ltd, Hindustan Unilever Ltd and Arvind Limited.

Its product portfolio comprises home, personal care and performance chemicals; textile specialty chemicals and animal health and nutrition products. The home and personal care segment accounted for 46 per cent of its overall revenue for the six months ended September 2019 while, textile speciality chemicals made up about 45 per cent.