Rossari Biotech IPO – Things to know before buying

The first IPO (Rossari Biotech) of financial year 2020-2021 is currently live after a four month dry in business activities due to the nationwide lock down caused by COVID-19.

Initial Public Offer (IPO)

Rossari Biotech Ltd is a specialty chemical manufacturer founded in 2003 as a partnership firm in the name of Rossari Labtech by Mr.Edward Walter & Mr.Sunil Srinivasan further converted into a company in 2009.

Basic Chemicals
(High in volume & low in price)
Specialty Chemicals
(High in price & low in volume)

Specialty chemical is used as an additive. In other words it is used as to add value in the end product to enhance the product quality.

For depicting the role of specialty chemicals Rossari Biotech has shared a case study in the company prospectus.

A detergent having heavy contents of alkaline can cause damages to the washing machine while washing clothes. So if we use specialty chemicals in that detergent it reduces the alkaline content without reducing the quality of the detergent. 

The Rs 496 Crore IPO of Rossari Biotech is already 24% subscribed on day 1 within the initial 4 hours of the bidding process.

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What you need to know before buying?

Rossari Biotech Ltd of India operates in 17 foreign companies including Vietnam & Bangladesh. According to the Global & Indian Specialty Chemicals Report September 2019 Rossari Biotech Ltd is the largest manufacturer of textile specialty chemicals.

Understanding the Business of Rossari Biotech

1. Product Categories –

  • Textile Specialty Chemicals
  • Animal Health & Nutrition Products
  • Home Nutrition Products > Personal Care > Performance Chemicals

2. Clientele of Rossari Biotech Ltd

The company has Lifebuoy and Hindustan Unilever Limited (HUL) as major customers for specialty chemicals.

Share Holding Pattern

Among the total shares, 95% is held by the promoters of the company (42.10% by Mr.Edward & 42% by Mr.Sunil) Other promoters hold approximately 11% of the total 95% held by the promoters.

Revenue Split

In the financial year 2019-20, 47% is contributed by home care products whereas 44% & 9% is contributed by textile & animal health & nutrition products.

Distribution of Revenue

Rossari Biotech Ltd generates revenue globally in which 86.23% is from India and the remaining 13.77% comes from outside India.

Opportunities Ahead

Segmentation of global specialty chemicals market – Out of the total USD 217 Billion, the first 50% of the international market of specialty chemical is already tapped by Rossari Biotech and the other half is still to be conquered. In other words it is a great expanding opportunity for the company.

Capital Expenditure
  • Investing in purchase of PPE for their Silvassa plant (120000 MTPA capacity)
  • Setting up another manufacturing plant at Dahej in Gujrat (132500 MTPA capacity)

TW Bonus Point ~

Specialty chemical is a great category for buying since exports are increasing as well as domestic consumption is also on the rise. As a COVID-19 launch, the company is coming with garments made of specialty chemicals (Anti microbial, Anti bacterial, Anti sweating)

Disclaimer – This blog post has been provided to you based on our study of different sources of web.

We don’t take responsibility of the credibility of any information or facts.

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Gourav Ahuja

Hi, I am the author of Taxationwealth where we mainly educate people about financial freedom and make available what’s best for them to achieve their financial goals.

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