Rossari Biotech: IPO Journey, Financial Performance, and Future Outlook
Rossari Biotech, a leading specialty chemicals manufacturer in India, launched its Initial Public Offering (IPO) in July 2020 amid the COVID-19 pandemic. The IPO witnessed an overwhelming response, with the stock debuting at a 73% premium over its issue price. Following its strong listing, Rossari Biotech’s stock continued to rally, reaching an all-time high of ₹1,619. However, the stock has since experienced a sharp decline, currently trading over 60% below its peak.
Rossari Biotech Recent Stock Performance
On March 13, 2025, Rossari Biotech’s stock closed at ₹615.70, down ₹5.60 (-0.90%) from its previous close of ₹621.30. The stock opened at ₹621.30, hit an intraday high of ₹641.05, and touched a low of ₹607.55. A total of 49,385 shares were traded, with an average price of ₹619.36. The stock’s lower circuit limit was set at ₹492.60, while the upper circuit was capped at ₹738.80.
Rossari Biotech: A Leader in Specialty Chemicals
Rossari Biotech is a well-established player in the specialty chemicals sector, catering to industries such as FMCG, apparel, poultry, and animal feed. The company’s product portfolio includes:
- Home and personal care chemicals
- Performance and textile specialty chemicals
- Animal health and nutrition products
Rossari Biotech’s IPO Recap
Rossari Biotech’s IPO opened for subscription between July 13 and July 15, 2020, marking the first IPO in India after the COVID-19 lockdown. The issue was priced between ₹423 and ₹425 per share, with a minimum lot size of 35 shares. The IPO raised ₹500 crore, including:
- ₹50 crore as a fresh issue
- ₹450 crore as an Offer for Sale (OFS)
Investor interest was exceptionally high, with the IPO oversubscribed 79.37 times:
- Retail investors: 7.23x oversubscription
- Qualified Institutional Buyers (QIBs): 85.26x oversubscription
- Non-Institutional Investors (NIIs): 239.83x oversubscription
Upon listing on July 23, 2020, Rossari Biotech’s stock opened at ₹670 per share, a 73% premium over the issue price. The proceeds from the IPO were used to repay debt, meet working capital needs, and for general corporate purposes.
Financial Performance Over the Years
Rossari Biotech has demonstrated consistent revenue growth while maintaining profitability. Here’s a snapshot of its financials:
| Year | Sales (₹ Cr) | Operating Profit (₹ Cr) | Net Profit (₹ Cr) | EPS (₹) |
|---|---|---|---|---|
| 2019 | 516 | 78 | 46 | 9 |
| 2020 | 600 | 105 | 65 | 13 |
| 2021 | 709 | 124 | 80 | 16 |
| 2022 | 1,483 | 183 | 98 | 18 |
| 2023 | 1,656 | 223 | 107 | 19 |
| 2024 | 1,831 | 250 | 131 | 24 |
- Revenue has grown 3.5 times since 2019.
- Operating profit has tripled over the same period.
- Net profit surged from ₹46 crore in 2019 to ₹131 crore in 2024.
Despite rising expenses due to business expansion, the company has managed to sustain profitability, positioning itself for future growth in the specialty chemicals market.
Rossari Biotech Shareholding Structure (As of December 2024)
- Promoters: 68.19%
- Domestic Institutional Investors: 17.47%
- Foreign Institutional Investors (FIIs): 3.74%
- Public Shareholding: 9.51%
- Other Private Entities: 1.09%
A high promoter holding indicates strong insider confidence, while institutional investments highlight market trust in Rossari Biotech’s growth prospects.
Stock Performance and Market Volatility
Rossari Biotech’s stock has seen notable volatility over different timeframes:
- 1-Year High: ₹972.70 | 1-Year Low: ₹569.00
- 3-Year High: ₹1,052.85 | 3-Year Low: ₹536.35
- 5-Year High: ₹1,619.00 | 5-Year Low: ₹536.35
Currently trading at ₹615.70, the stock remains closer to its 1-year low, reflecting ongoing market uncertainty.
Growth Potential and Future Outlook
In Q3 FY2024, Rossari Biotech reported:
- 10.55% YoY revenue growth to ₹512.73 crore
- Net profit decline of 7.82% to ₹31.70 crore
Despite the profit dip, analysts remain bullish on long-term growth, with projected:
- Annual earnings growth of 17.8%
- Revenue growth rate of 13.5%
- ROE improvement to 13.8% within 3 years
With its strong market presence, diversified product portfolio, and solid financials, Rossari Biotech remains a key player in the specialty chemicals sector. While short-term fluctuations persist, its long-term growth potential remains intact.
Disclaimer: This content is intended solely for educational and informational purposes and should not be interpreted as financial or investment advice. The information presented is derived from publicly available sources and independent analysis; however, its accuracy or completeness is not guaranteed. Readers are encouraged to conduct their own due diligence and seek guidance from a professional financial advisor before making any investment decisions. Neither the author nor stoxmail.com assumes responsibility for any financial losses or investment actions taken based on this article.