As per sources privy to the development, Mumbai-based specialty chemicals manufacturing company Rossari Biotech is gearing up to list on Indian bourses after a hiatus of almost over 3 month in the IPO market, thanks to the Covid 19 led lockdown and consequent disruption.
Notably, SBI Cards and Payment Services with an IPO issue size of Rs. 10000 crore was the last to hit the bourses on March 16, 2020. And thereafter in order to prevent the surge of Covid 19 infection, nationwide lockdown was enforced from March 25.
Though the capital markets continued to function as usual undeterred by the coronavirus outbreak, being categorized under essential services, no company dared to hit the primary market ever since then due to negative sentiment and heightened volatility.
"Business has boomed for Rossari Biotech during the COVID-19 phase due to rising demand for disinfectants and sanitisers manufactured by the firm. Post the final approval from Sebi for revised documents with updated financials, the plan is to launch the IPO in a few weeks by mid or end July," said one of the source quoted above.
ICICI Securities and Axis Capital are the advisors to the IPO.
The company filed its DRHP (draft red herring prospectus) with Sebi in December, 2019 and planned to launch its IPO on March 18, 2020. But due to unfavorable market conditions deferred its plan.
Sources told the leading online business portal that the IPO issue size can likely be around Rs. 300 crore and include both primary and secondary issue of shares. "The proceeds will be used for working capital requirements and to repay loans. In fact, the firm raised around Rs 100 crore in March in a pre-IPO round."