Rossari Biotechs BIG PLANS to raise funds; stock up 10 pct in one week
Stocks to Buy - Rossari Biotech - Specialist Chemicals company Rossari Biotech is in action. The stocks of this company have gone up by over 10 per cent over the last one week. What are the plans of this company to raise capital? In chat with Zee Business Managing Editor Anil Singhvi, Devanshi Asher gives a detailed report
Stocks to Buy – Rossari Biotech – Specialist Chemicals company Rossari Biotech is in action. The stocks of this company have gone up by over 10 per cent over the last one week. What are the plans of this company to raise capital? In chat with Zee Business Managing Editor Anil Singhvi, Devanshi Asher gives a detailed report.
Rossari Biotech which got listed in July 2020 is planning to raise funds. The company is planning to raise around Rs 300 cr as per the news emerging on Wednesday, Asher said. This will be raised through preferential allotment of shares. The company is planning to allot around 30 lakh shares. She said that it appears that the allotment of Rossari Biotech shares are likely to be at a discount.
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Rossari Biotech will be allotting 30.12 lakh shares at a price of Rs 996 per equity shares, she said. The Tuesday closing price of Rossari Biotech was Rs 1112. This means that the shares will be allotted at a discount of 10 percent, Asher said.
The decision to raise the funds has been taken by the board of the company. She said that the SBI Mutual Fund is likely to be allotted around 10 lakh shares. Its stake will go up from 5.5 per cent to almost 7 per cent, she said.
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Meanwhile, Malabar Funds will also be allotted Rossari Biotech shares, she said.
She said that the company has shared its plans in a press release. Asher said that Rossari Biotech’s decision to raise funds was because the company raised just Rs 50 cr through fresh shares, issued at the time of its IPO, last year. But, this time around it is planning to raise around Rs 300, she said.
The company wants to bring some big investors or marquee investors to its fold.
Rossari Biotech has also said that it will use the funds towards the inorganic growth of the company. It will also use this money to diversify its product portfolio and bring new products, Asher said.
At the time of the IPO, the cashflows of the company were very strong. The company does not have any significant debts, she further said.
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