IPO investments are one of the most rewarding and long-awaited investments for most of the money makers of the nation. Probably, it is considered a far better option than secondary markets. We all know that the IPO market saw a huge silence after the launch of the SBI Cards IPO in 2020. Now, after a long halt in the Indian IPO market, specialty chemical company Rossari Biotech Limited IPO is now opening for subscriptions from 13 July 2020 for a lot of size of 35 shares with the issue price range of INR 423 – 425. Due to the pandemic condition of COVID19, the IPO launch date was postponed, which was scheduled for 18 March 2020. The listing data for Rossari Biotech’s mainboard IPO has been scheduled for 23 July 2020.
As per reports from IPO Corner, the public issue of Rossari Biotech’s mainboard IPO will have a size of approx. INR 500 Cr. The closing date of the Rossari Biotech Upcoming IPO will be 15 July 2020, and the issue will comprise of a fresh sale of 1,05,00,000 equity shares. Most of the investors who are waiting for a long time to invest in the Indian IPO market can now invest their funds for one of the best renowned and largest specialty chemical company in India. Let’s know a few more details for the Rossari biotech mainboard IPO so that you can have a hefty investment opportunity.
Rossari Biotech IPO – Know the Company Details
Rossari Biotech is a renowned name in the field of textile specialty chemical industry as the largest manufacturer of India. It offers mainly products in the categories of personal care, home care, textile chemicals, animal health, and nutrition products. The company is already involved in the international operations of its business in 17 countries, including but not limited to Mauritius, Vietnam, and Bangladesh. A recent F&S report dated 30 Sept 2019 states the company has the nation’s largest textile specialty chemical manufacturer.
Past Year Revenues of Rossari Biotech
To invest in the Rossari Biotech mainboard IPO, it is necessary that you know the exact past revenue details of the company. This can be a positive outlook towards your ROI on Rossari biotech mainboard IPO.
According to IPO Corner, a major leading IPO investment portal, “Rossari Biotech IPO’s revenue for its home care segment products surged to 46.83% in FY20 from just 18.63% in FY18. For the textile specialty chemical segment, the revenue was accounted for 71.54% in FY18 and 43.71% in FY20. Rossari Biotech’s animal healthcare segment products collected cumulative revenue of 9.83% in FY18 and 9.48% in FY20.
Apart from it, the return on the net worth of Rossari Biotech limited IPO Company stands at 31.79% in FY20, 43.32% in FY19, and 34.08% in FY18.
Future Plans of Rossari Biotech
Through the net proceeds of the Rossari Biotech mainboard IPO, the company is all set to expand its manufacturing unit from Silvassa to Dahej, counting to a total number of 2 units. With the cost and logistical advantage, the company is planning to proceed into water treatment formulations and construction chemicals market. The company will also use the funds towards its working capital requirements and basic operational needs.
What do the Experts Say?
Financial experts of IPO Corner suggests that Rossari Biotech’s upcoming IPO is a top pick for both short term and long term investors. Analytically, Rossari Biotech Ltd IPO has a strong surge of percentage listed in EBITDA and net profit CAGR from FY17 to FY20, i.e. 32%, 63%, and 67%. IPO Corner analysts say, “Rossari Biotech P/E is having a slight overvalue at 31x. Normally it should be 27x on an average. Short term investors can get a good ROI from Rossari Biotech Ltd IPO from the listing gain. Long term investors can have a fair deal with 0.3 debt/equity ratio and enough cash to justify the valuation.”
A major factor is that the present situation of COVID19 has not affected the operations of Rossari Biotech as the Silvassa unit was totally unaffected. Analyzing the future possible risks of COVID19 on coronavirus operations, the company has already stored the bulk quantity of disinfectants and sanitizers under its list of essential goods.
To know more about the Rossari Biotech Ltd IPO details, visit www.ipocorner.in.