Rossari IPO India’s first to defy lockdown

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Rossari Biotech

Shardul Amarchand Mangaldas & Co (SAM) advised Rossari Biotech on its recent ₹4.96 billion (US$66 million) initial public offering (IPO) – the first in India since the 24 March lockdown – which was oversubscribed nearly 80 times.

J Sagar Associates (JSA) was the legal adviser on Indian law for the two book running lead managers (BRLMs), Axis Capital and ICICI Securities, while Squire Patton Boggs Singapore was international legal counsel to the BRLMs.

In a comment to India Business Law Journal, Prashant Gupta, the national practice head for capital markets at SAM, said it was “great to see the first IPO post the pandemic in India doing so exceptionally well”.

“We have been privileged to have worked with Rossari on this, navigating the whole IPO process remotely and digitally,” said Gupta. “The company’s management and the book runners deserve great praise for having the confidence to move forward in this exceptionally volatile and uncertain time.”

SAM’s team comprised partners Nikhil Naredi and Sayantan Dutta, principal associate Abhinav Maker, and associates Maharghya Biswas, Harsh Loonker, Ajo Jomy and Himanshu Rathore.

Pointing out that the issue was the first that “tested the viability” of virtual roadshows and e-meets, Arka Mookerjee, a partner at JSA who advised on the deal, said that Rossari Biotech “ended up mastering the art of smooth co-ordination and effective flow of communication solely through digital modes”.

Mookerjee added that material contracts and documents had been made available for inspection remotely on the company’s website. This was a “first of its kind for an IPO”, he said.

JSA’s team included principal associate Siddhartha Desai, and associates Ananth Balaji and Kinjal Shah. Squire Patton Boggs’ team included partner Biswajit Chatterjee and senior associate Kaustubh George.

Rossari Biotech’s IPO was initially scheduled for 18 March, but was cancelled when market conditions worsened on account of the covid-19 pandemic. The offering was a combination of a fresh issue of ₹500 million and offer for sale by the promoters of equity shares aggregating to ₹4.5 billion.

A pre-IPO placement of equity shares in February had drawn in nearly ₹1 billion. The deal closed on 21 July.