Rossari Biotech is a manufacturer of speciality chemicals. Face Value of the issue is Rs.2 with the price band of Rs.423 to Rs.425 for 10,500,000 equity shares as an offer for sale. Pre-Issue Promoter holding is 95.06% and post the issue it will be 73%. Now as per our methods of reviewing the IPO we will be given out some important points below.
- The average cost of the share acquisition, we give first priority to this factor reviewing the IPO. With this factor only we had avoided SBI Cards, we know what happened in that. Acquisition cost in this IPO is Rs.4.16.
- Even when we see among the listed peers, Rossari Biotech is not looking good for the price demanded comparing the revenue with other peers. NAV per share is also too low for the share price demanded. Seeing the bullish trend in the market, and lack of IPOs in the current scenario investors may rush to this, but those who see the value and are investors for long-term should wait for the listing and see the trends further.
Conclusion Rating: Neutral to Avoid.