{"id":516,"date":"2020-07-09T12:56:42","date_gmt":"2020-07-09T12:56:42","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=516"},"modified":"2020-07-09T12:56:45","modified_gmt":"2020-07-09T12:56:45","slug":"rossari-biotechs-ipo-opens-on-july-13-2020-should-you-invest-or-not","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/rossari-biotechs-ipo-opens-on-july-13-2020-should-you-invest-or-not\/","title":{"rendered":"Rossari Biotech\u2019s IPO Opens on July 13, 2020 &#8211; Should You Invest or not?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Next week on July 13, 2020, the Rossari Biotech\nLtd. will launch its initial public offering (IPO), and finally, put an end to nearly\nfour-month of inactivity for IPOs due to COVID-19 in the domestic markets. This\ntextile and speciality chemicals manufacturing company will be the first to be listed\nin the lockdown phase. In times when the pandemic disrupted the economy, many\ncompanies postponed their IPO launches except the Rossari Biotech which decides\nto raise Rs. 496.25 crore by selling 1.16 crore at Rs. 423-425 per equity share,\nas per the red-herring prospectus. <\/p>\n\n\n\n<p>The company is looking forward to its debt repayment by raising funds by \u2018going public.\u2019 The IPO consists \u2013 a fresh issue and an offer-for-sale by two promoters which are Edward Menezes and Sunil Chari. Each of them selling Rs. 52.5 lakh shares. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#Rossari_Biotech_IPO_Details\" title=\"Rossari\nBiotech IPO Details:\">Rossari\nBiotech IPO Details:<\/a><\/li><li><a href=\"#Rossari_Biotech_Overview\" title=\"Rossari\nBiotech: Overview\">Rossari\nBiotech: Overview<\/a><ul><li><a href=\"#Return_Ratios_in_per_cent\" title=\"Return\nRatios (in per cent)\">Return\nRatios (in per cent)<\/a><\/li><li><a href=\"#Peer_Comparison_in_per_cent\" title=\"Peer\nComparison (in per cent)\">Peer\nComparison (in per cent)<\/a><\/li><\/ul><\/li><li><a href=\"#Things_to_Consider_Before_Investing_in_Rossari_Biotech_IPO\" title=\"Things\nto Consider Before Investing in Rossari Biotech IPO\">Things\nto Consider Before Investing in Rossari Biotech IPO<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\">Rossari\nBiotech IPO Details:<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><tbody><tr><td>\n  <strong>IPO Date<\/strong>\n  <\/td><td>\n  July\n  13, 2020 \u2013 July 15, 2020\n  <\/td><\/tr><tr><td>\n  <strong>Issue Type<\/strong>\n  <\/td><td>\n  Book\n  Build Issue IPO\n  <\/td><\/tr><tr><td>\n  <strong>Issue Size<\/strong>\n  <\/td><td>\n  11,682,033\n  Equity Shares of Rs. 2 (aggregating up to Rs. 496.49 Cr)\n  <\/td><\/tr><tr><td>\n  <strong>Offer for Sale<\/strong>\n  <\/td><td>\n  10,500,000\n  Equity Shares of Rs. 2 (aggregating up to Rs. [.] Cr)\n  <\/td><\/tr><tr><td>\n  <strong>Face Value<\/strong>\n  <\/td><td>\n  Rs.\n  2 per Equity Share\n  <\/td><\/tr><tr><td>\n  <strong>IPO Price<\/strong>\n  <\/td><td>\n  Rs.\n  423 to Rs. 425 per Equity Share\n  <\/td><\/tr><tr><td>\n  <strong>Market Lot<\/strong>\n  <\/td><td>\n  35\n  <\/td><\/tr><tr><td>\n  <strong>Minimum Order Quantity<\/strong>\n  <\/td><td>\n  35\n  <\/td><\/tr><tr><td>\n  <strong>Listing Exchange<\/strong>\n  <\/td><td>\n  NSE,\n  BSE\n  <\/td><\/tr><tr><td>\n  <strong>P\/E (x)<\/strong>\n  <\/td><td>\n  33.81\n  <\/td><\/tr><tr><td>\n  <strong>Market Capitalisation (in Rs.)<\/strong>\n  <\/td><td>\n  2207\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Rossari\nBiotech: Overview<\/h2>\n\n\n\n<p>Rossari Biotech is one of the leading speciality\nchemicals manufacturing companies in India providing customized solutions to\nthe specific industrial and productional requirements in the FMCG, poultry,\napparel, and animal feed industries through its wide range of product portfolio\ncomprising home, personal care, and performance chemicals; textile speciality\nchemicals; and animal health and nutritional products. According to the F&amp;S\nReport (as on September 30, 2019), Rossari Biotech is the largest manufacturer\nof textile speciality chemicals in India. <\/p>\n\n\n\n<p>Mr Edward Menezes and Mr Sunil Chari are the\npromoters of the company. The textile speciality chemicals and home, personal\n&amp; performance products are the major contributor to the company\u2019s revenue.\nThe company manufacturers most of its products in-house from its facility at\nSilvassa, Union Territory of Dadra and Nagar Haveli. <\/p>\n\n\n\n<p>The company\u2019s operating profit and net profit\ngrew at a compounded annual rate of 32%, 63%, and 67% respectively through\nfinancial years ended March 2017 to 2020. During the same period, the EBITDA\nmargin expanded to 17.4% from 9.2%. The company has shown significant growth\namongst its peers such as Aarti Industries Ltd, Atul Ltd, and Fine Organics\nIndustries Ltd, and Vinati Organics Ltd. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Return\nRatios (in per cent)<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><tbody><tr><td>\n  <strong>Companies<\/strong>\n  <\/td><td>\n  <strong>RoE<\/strong>\n  <\/td><td>\n  <strong>RoCE<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>Rossari Biotech<\/strong>\n  <\/td><td>\n  32\n  <\/td><td>\n  25\n  <\/td><\/tr><tr><td>\n  <strong>Aarti Industries<\/strong>\n  <\/td><td>\n  19.2\n  <\/td><td>\n  16.2\n  <\/td><\/tr><tr><td>\n  <strong>Atul<\/strong>\n  <\/td><td>\n  17.4\n  <\/td><td>\n  27.3\n  <\/td><\/tr><tr><td>\n  <strong>Fine Organics<\/strong>\n  <\/td><td>\n  29.5\n  <\/td><td>\n  34.1\n  <\/td><\/tr><tr><td>\n  <strong>Vinati Organics<\/strong>\n  <\/td><td>\n  28.6\n  <\/td><td>\n  36.4\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\">Peer\nComparison (in per cent)<\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><tbody><tr><td>\n  <strong>Companies<\/strong>\n  <\/td><td>\n  <strong>Revenue <\/strong>\n  <\/td><td>\n  <strong>EBITDA<\/strong>\n  <\/td><td>\n  <strong>Net Profit<\/strong>\n  <\/td><\/tr><tr><td>\n  <strong>Rossari Biotech<\/strong>\n  <\/td><td>\n  32\n  <\/td><td>\n  63\n  <\/td><td>\n  67\n  <\/td><\/tr><tr><td>\n  <strong>Aarti Industries<\/strong>\n  <\/td><td>\n  13\n  <\/td><td>\n  14.5\n  <\/td><td>\n  20\n  <\/td><\/tr><tr><td>\n  <strong>Atul<\/strong>\n  <\/td><td>\n  13\n  <\/td><td>\n  20\n  <\/td><td>\n  28\n  <\/td><\/tr><tr><td>\n  <strong>Fine Organics<\/strong>\n  <\/td><td>\n  10\n  <\/td><td>\n  18\n  <\/td><td>\n  28\n  <\/td><\/tr><tr><td>\n  <strong>Vinati Organics<\/strong>\n  <\/td><td>\n  16\n  <\/td><td>\n  23\n  <\/td><td>\n  35\n  <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Things\nto Consider Before Investing in Rossari Biotech IPO<\/h2>\n\n\n\n<p>The company has shown significant growth in its\nrevenue, EBITDA, RoE and RoCE in the last three years and emerged as the\nleading the largest manufacturer of textile speciality chemicals in India. Undoubtedly,\nthe company is performing well amongst its peers but investors should be\nprudent before investing in Rossari Biotech&nbsp;\nIPO. <\/p>\n\n\n\n<p>Below we\u2019ve mentioned some key points or\nfactors that you must consider before applying for Rossari Biotech IPO:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Rossari Biotech is reliant on the demand from the significant portion and has textile speciality chemicals and home, personal &amp; performance products as major contributors. Also, the company generate a significant portion of revenue from a few major institutional customers such as TSC and HPPC product categories. Any downturn in the textile industry or demand could have an adverse impact on the company\u2019s business, operations, and cash flows. <\/li><li>The Silvassa manufacturing facility is very critical for their business. Any downturn or shutdown could have an adverse impact on financial operations. <\/li><li>The revenue model of the company can largely be affected by the increase in the cost of raw material which could further affect the financial conditions of the company. <\/li><\/ul>\n\n\n\n<p>Apart from this, any delay in payment from\ndistributors or customers could result in a reduction of the company\u2019s. profits.\nIf we consider what we mentioned above, the Rossari Biotech has shown\nrelatively remarkable growth in its peer and growing consistently. However, the\nIPO price seems a bit overpriced. Nevertheless, the investors must be prudent\nwhile considering investing in Rossari Biotech IPO. For more details, the\ninvestors should go through the red herring prospectus of the Rossari Biotech\nto get in more details. <\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 4,535<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"516\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">4    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Next week on July 13, 2020, the Rossari Biotech Ltd. will launch its initial public offering (IPO), and finally, put an end to nearly four-month [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/rossari-biotechs-ipo-opens-on-july-13-2020-should-you-invest-or-not\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":517,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,2,10],"tags":[148,149,150],"class_list":["post-516","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo","category-stock-market","category-featured","tag-rossari-biotech-ipo","tag-rossari-biotech-ipo-details","tag-should-invest-in-rossari-biotech-ipo"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/516","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=516"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/516\/revisions"}],"predecessor-version":[{"id":518,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/516\/revisions\/518"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/517"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=516"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=516"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=516"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}