Rossari Biotech was expected to get a bumper listing on the bourses, going by the overwhelming response it got for its IPO. But getting listed yesterday at Rs.752 v/s its IPO price of Rs.425 was something no one had even imagined. The stock today continued with its surge, rising to hit an intraday high at Rs.794.25, with a market cap close to Rs.4000 crore.
The IPO, which was open between 13-15 July, with a price band of Rs.423 to 425/share was oversubscribed by a huge 79.37 times.
The proceeds from the fresh issue and the pre-IPO placement will be utilised to repay or prepay borrowings of Rs.65 crore, fund its working capital requirements of Rs.50 crore and for general corporate purpose, it said in a press statement. The company will not receive any proceeds from the offer for sale.
In our IPO Analysis, we had said, “Healthy growth visibility, expanding margins, debt free balance sheet (post IPO) and tailwinds in the home and personal care industry make up for the aggressive issue pricing. Hence, one can consider the IPO with a medium term outlook.”