By Aditya Raghunath
Investing.com — Rossari Biotech Ltd (NS:)’s stock price has been on an upward curve since its IPO in July 2020. The stock’s issue price was Rs 425 per share. It closed June 2 at Rs 1,265, a gain of almost 200%. Since March 30, 2021, it has gained over 22%.
On Wednesday, the company announced that it is going to acquire Unitop Chemicals, a leading supplier of surfactants, emulsifiers and specialty chemicals to companies in India and abroad. Unitop has three manufacturing plants in India with a capacity of 86,000 tons per annum.
The total cost of the acquisition is Rs 421 crore, and Rossari will acquire 65% of the company now and the balance 35% over the course of two years.
Rossari Biotech said, “Combination of Unitop Chemicals with Rossari will augment the quality and acceleration of the company’s growth going forward.”
Rossari will fund the acquisition through the cash it has on its balance sheet and has said that it doesn’t intend to take on debt for the same.
For FY20, Unitop Chemicals reported revenues of Rs 280 crore and an adjusted operating profit of Rs 43 crore. For FY21, revenues are estimated at over Rs 300 crore.