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This article is more than 1 year old.

Rossari Biotech IPO subscribed 60% on Day 1

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The initial public offer (IPO) of Rs 496 crore specialty chemicals manufacturer Rossari Biotech was subscribed 60 percent on the first day of bidding. The IPO received bids for 49,30,030 shares against the total issue size of 81,73,530 shares. Price range for the offer has been fixed at Rs 423-425 per share.

Rossari Biotech IPO subscribed 60% on Day 1
The initial public offer (IPO) of Rs 496 crore specialty chemicals manufacturer Rossari Biotech was subscribed 60 percent on the first day of bidding on Monday.
The IPO received bids for 49,30,030 shares against the total issue size of 81,73,530 shares.
Qualified Institutional Buyer (QIB) portion was subscribed 41 percent, non-institutional investors 11 percent and retail investors 92 percent.
Price range for the offer has been fixed at Rs 423-425 per share.
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The IPO comprises a fresh issue of Rs 50 crore and an offer for sale of over 1 crore equity shares including anchor portion of 35,02,940 equity shares.
A few brokerages raised concerns over the company's near-term future, meanwhile most of them remained bullish about the issue given it's primary business of specialty chemicals and HPPC (home and personal care) segment.
According to a few media reports, the unlisted shares are demanding a premium of 30-35 percent over the IPO price in the grey market. Some traders are expecting the issue to close at a higher premium till close date (July 15).
The company said that the net proceeds from the issue will be utilised for funding working capital requirements, repaying certain debt availed by the company and for general corporate purposes.
On Friday, the company raised Rs 149 crore from anchor investors, including SBI Mutual Fund, HDFC Mutual Fund and ICICI Prudential Mutual Fund.
The company, which filed its draft papers with Sebi in December 2019, received clearance from the regulator in February to launch the IPO.
Rossari Biotech is a specialty chemicals manufacturing firm with focus on home and personal care, performance chemicals, textile specialty chemicals and animal health and nutrition products.
 
 
(Inputs taken from PTI)
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