Rossari Biotech will be the first IPO after SBI Cards came out with its IPO nearly 4 months back. However, it needs to be remembered that Rossari is predominantly a specialty chemicals company with animal proteins accounting for less than 10% of its revenues. However, specialty chemicals have been in the news for all the right reasons.

The implied price-to-earnings multiple in the IPO price is at the higher end of its price band and equivalent to large-sized industry counterparts. Hence you may have to take a call as to whether you want to bet on an IPO or on an existing listed specialty chemical stocks in the markets. However, the anchor investors constitute a formidable set of investors.

Rossari essentially makes specialty chemical ingredients for soaps, detergent, paper, paints, ceramics and apparel. It boasts of marquee clients like Hindustan Unilever, IFB Agro, Bosch, Arvind, Raymond and others. It is also working to launch new and innovative products in the fast growing anti-microbial and electromagnetic protection range if textiles.

Revenue growth and profit growth have been healthy and that should work in favour of the IPO.