If you go by the grey market pricing then the stock is quoting at a marginally premium to the proposed issue price but that is subject to change from time to time. The Rs.500 crore IPO of Rossari Biotech will open on Monday, 13 July. The IPO will be a mix of fresh issue and an offer for sale by the existing shareholders of the company.

The fresh issue component has been deliberately reduced from Rs.150 crore to Rs.50 crore considering the prevailing market conditions in the aftermath of the COVID-19 pandemic. It must also be remembered that Rossari is a company focused on specialty chemicals and it will be the first IPO since SBI Cards IPO was launched nearly 4 months ago.

In terms of fund raising, Rossari has already raised Rs.100 crore via pre-IPO placement of shares. The price band for the IPO has been set at Rs.420-425 and that pre-supposes a market cap of Rs.2207 crore for the company to begin with. Post IPO, the promoter holding will fall from 95.06% to 72.7%. It would be best to wait for the listing and then take a call.