Rossari Biotech to Issue Equity Shares aggregating to ₹ 300 crore on Preferential Basis

Rossari Biotech Limited (Rossari), a Speciality-Chemicals manufacturer providing intelligent and sustainable solutions for customers across industries announced that its Board of Directors, in its meeting held on March 23, 2021, approved the issuance of up to 30,12,046 equity shares of face value of ₹ 2/- each, on a preferential basis.

The Board of Directors, in accordance with Chapter V of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, and other applicable laws, determined a floor price of ₹ 996 per Equity Share or such higher price, aggregating to ₹ 300 crore. This preferential issue is subject to necessary approvals, including from the Company's shareholders.

The proposed issue will bring on board high-quality and marquee shareholders of scale and repute. The funds from this issue, if approved, will further strengthen the Company's balance sheet profile and will also augment the financial flexibility to address medium-to-long term growth prospects. Rossari proposes to utilize the net proceeds to evaluate & invest in inorganic growth opportunities, within its core chemistries, with a view to diversify its product portfolio, expand geographical reach and augment end-user industry applications. This will further enable the Company to build a strong upcoming pipeline of new products, with impetus on sustainability and environment-friendliness.

Axis Capital Limited and Axcelus Finserv are advising the Company on this fund raise.

Source : Equity Bulls

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