Rossari Biotech initial public offering (IPO) has been subscribed 21 per cent so far on the first day of bidding on Monday. The Mumbai-headquartered speciality chemical manufacturer received bids for 17,35,905 equity shares as against offer size of 81,73,530 equity shares (excluding the anchor book portion), the latest subscription data on the exchanges showed. While the retail investor portion was subscribed 41 per cent, non-institutional portion was subscribed 3 per cent. The qualified institutional buyers' (QIB) quota was subscribed less than 1 per cent. The IPO is open for public subscription from July 13-15.
The public offering holds significance since it's the first one to hit markets after a gap of four months. SBI Cards & Payment Services was the last company to float IPO in March. On Friday, Rossari Biotech said that it has raised Rs 149 crore from anchor investors.
The IPO comprises fresh issuance of shares worth Rs 50 crore and sale of 1,05,00,000 equity shares by company's promoters through offer-for-sale (OFS) route. At the upper end of the price band, the IPO size is about Rs 496 crore. 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.
Axis Capital and ICICI Securities are the merchant bankers for the share-sale. The equity shares will be listed on the NSE and BSE. Post the IPO, the promoter shareholding will fall to 73 per cent from 95 per cent earlier.
The anchor investors include Abu Dhabi Investment Authority, HDFC Mutual Fund, Axis Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund, Sundaram Mutual Fund, HDFC Life Insurance Company and Goldman Sachs India.