The gravity-defying story Rossari Biotech IPO

Image for post
Image for post

If the current pandemic has taught us anything, it is to be resilient. It is no secret that businesses, big and small, are grappling with unfavourable situations, be it lack of labour, disturbed supply chain or disrupted logistic. Nonetheless, companies with strong fundamentals are able to minimise the coronavirus pandemic’s impact on their businesses.

Others entities manufacturing essential products are also sailing through the adversities. But there is a distinct set of companies that is blessed with a situational advantage with what’s happening on the Indo-China front. Rossari Biotech is one such company. The company recently went live and its stock was listed at an attractive premium, for all the right reasons. That’s what we will see in this article.

Introduction to Rossari Biotech IPO
In the business domain, Rossari Biotech would be a good example of how to take a second chance. In a bold move amid the coronavirus pandemic, Rossari Biotech, the specialty chemical company, announced its intention of going public. Surprisingly though, Rossari Biotech rocked the IPO on the back of strong books, growth track, and situational advantage.

An overview of Rossari Biotech Limited
Rossari Biotech is a specialty chemicals company — which claims to be the largest textile specialty chemicals manufacturer in India, offering products in a sustainable, eco-friendly, and competitive manner. The company also manufactures acrylic polymers and offers customized solutions to specific production and industrial requirements across three categories:

  • Home, personal care, and performance chemicals
  • Textile specialty chemicals
  • Animal health and nutrition products

As of 31st May 2020, Rossari Biotech Limited had registered 2,030 products across these categories, selling them to customers including high-profile names such as Panasonic India, IFB Industries Ltd., and HUL.

Operations of Rossari Biotech
The supposedly India’s largest textile specialty chemicals manufacturer operates in 17 overseas locations including Bangladesh, Vietnam, and Mauritius. In India, it has 2 research and development facilities — one within the Silvassa manufacturing facility and another in Mumbai. The company is also setting up a new manufacturing facility at Dahej, Gujarat with a proposed installed capacity of 1,32,500 million tonnes per annum.

Competitors of Rossari Biotech
The company has international competitors such as Bayer Animal Health, Boehringer Ingelheim Animal Health, Cargill India, and Zydus AH under the animal nutrition products segment. In the home, personal care, and performance chemicals category, Rossari Biotech competes against MNCs such as BASF, Merck, and Wacher AG.

Under the textile specialty chemicals segment, Rossari Biotech competes against players such as Archroma, Huntsman Corporation, and CHT Croda International. Within the country, Rossari Biotech competes against peers including Vinati Organics, Aarti Industries, Atul, Galaxy Surfactants, and Fine Organic Industries.

Highlights of Rossari Biotech IPO
What sets Rossari Biotech IPO apart from others is its gravity-defying performance. Originally scheduled to be issued on 18th Mar 2020, the Rossari Biotech IPO was rescheduled to 13th Jul 2020 citing that COVID-19 had tumbled the stock markets, which made the conditions unfavourable to go public.

But with the markets gearing up from the last few weeks, Rossari Biotech seized the opportunity to go public. Despite facing issues in promoting the issue and interacting with stakeholders online, Rossari Biotech IPO garnered much attention and was oversubscribed by 79 times. In this sense, the company serves as an example of how IPOs could work in the post-COVID era. Continue to read the entire coverage why Rossari Biotech IPO performed well and what are its prospects here.

Lives in both own and parallel universes and loves nature, music, and words (that turn into actions)

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store