Rossari Biotech IPO: Consoidated Brokerage Views

This post on Rossari Biotech IPO tries to bring out consolidated brokerage views , subscription information, Grey Market Premium (GMP) and anchor investor information where applicable. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to Rossari Biotech IPO or not.

Related Post: Rossari Biotech IPO Review

Rossari Biotech IPO : Grey Market Premium etc.

  • 15-07-20 kostak rs. 750 GMP 150-160
  • 14-07-20 kostak rs. 425 GMP 125
  • 11-07-20 Kostak Rs. 450 GMP around 100)

Subscription: Rossari Biotech IPO ( x times)

Rosari Biotech Oversubscription
Day / X timesQIBNIIRetailTotal 
Day 385.26239.837.2379.37
Day 22.744.342.512.97
Day 10.420.110.930.60

Rossari Biotech IPO: Anchor Investors

Ahead of its IPO, Rossari Biotech raiseed  ₹148.8 crore from 15 anchor investors. The anchor investors include Abu Dhabi Investment Authority, Malabar India Fund, Ashoka India Opportunities Fund, Kotak Mahindra (International) Ltd, IIFL Special Opportunities Fund, HDFC Mutual Fund, Axis Mutual Fund, ICICI Prudential Mutual Fund, SBI Mutual Fund, Sundaram Mutual Fund, HDFC Life Insurance Company, Mirae Asset Mutual Fund, Goldman Sachs among others.

Consolidated Brokerages Views on Rossari Biotech IPO

Angel Broking: ” At the upper end of the price band, Rossari demands PE multiple of 32.1x F.Y.20 fully dilutedEPS. None of the listed chemical companieshasthe same business as Rossari. Its specialtychemical peers such as Galaxy Surfactants, Fine Organics, Aarti industries, Atul and Vinati Organics are currently trading atF.Y.2020 P/E multiples of 24.0x, 36.6x, 30.5x, 20.6xand 30.9xrespectively.We believe Rossari will commandpremium over most of its chemical peersas it is net debt free as wellas it has betterasset turnover, working capital days, ROEand ROCEbetter than most of its peers.In the last three years Rossari have reported 32% and 66% revenue and PAT CAGR due to the strong promoter and management team. As we are positive onthe future outlook for the industry as well as the company,we wouldrecommend to “Subscribe”to the issue “

Arihant Capital: ” At the upper price band of Rs 425 , issue has been offered at P/E of 33x to its FY20 EPS of Rs13,which is little bit expensive than its peers . However,Considering its debt-free status (post-issue), diversified product portfolio with sharp capacity expansion with low leverage coupled with strong margin and best fixed assets turnover ratio we have a positive outlook on the company’s growth prospects.Due to rising demand for hand sanitizers,disinfectants,cleaning chemical manufactured by Rossari,its business performance has boomed.Thus,We recommend investors to ‘Subscribe’for this issue.”

Capital Market: ” Score 48/100, The current environment is more conducive for specialty chemical companies riding strong growth opportunities in India and globally. As, on one hand, robust growth in user industries in India will support growth, on the other, emerging opportunities in exports led by clamp down in China and outsourcing opportunity from Western countries are expected to spur growth in exports and import substitution.”

Choice Broking: ” “Subscribe with Caution to Rossari Biotech Ltd. Long term play but fairly value.”

Dalal Street Journal: ” We believe that the issue is fairly priced. However, looking at the better return ratios and not enough capital required going forward; a long-term investor can invest with limited exposure. “

Geojit: “At the upper price band of Rs425, RB availableat P/E of 33.8x FY20 which seems expensive when compared to peers. However, considering RoE at ~44% (last 3-year Avg.), strong revenue growth and expanding margin profile support our ‘SUBSCRIBE’ rating for long term perspective.”

Motilal Oswal: “At the higher end of the price band, the issue is valued at 33.8x FY20 P/E (fully diluted). While this may appear high, we like the company given its (1) strong financial performance, (2) lean balance sheet and (3) doubling of capacity over next one year which will drive future growth. Hence, investors can Subscribe the IPO from a long term perspective. Further considering market conditions and bright prospects for specialty chemical space, one may also get listing gains.”

SMC : “ Rating 2/5; From the valuation front, the issue looks expensive. On the flip side, from the same domain, many other listed companies with proven track record are available at same or lower valuation. “

SP Tulsiyan website: “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.”

Ventura: “The company has a high RoIC of 31.6% in FY20 compared to 8.8% in FY15 due to the flexible assets that can be used for multiple purposes. Subscribe.”

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