Rossari Biotech eyes best day in 10 weeks on board nod to buyout

TriStar Gold

19/07/2021 07:21

** Shares of the speciality chemicals manufacturer  ROSB.NS 
rise as much as 7% to 1,249 rupees — their biggest intraday pct
gain since May 10
    ** Co said on Saturday its board approved the acquisition of
Tristar Intermediates at an enterprise value of 1.2 bln rupees
($16.08 million)
    ** Co says it will fund investment through cash on balance
sheet and doesn't plan to raise debt for acquisition
    ** Analysts at ICICI Securities say Rossari has announced
two acquisitions in the past two months, which will help it add
58% to revenue and 48% to EBITDA
    ** Total outlay (of both acquisitions) is 5.4 bln rupees.
Yet, Rossari will continue to remain debt-free which is 
comforting - brokerage
    ** Tristar supplies preservatives, aroma chemicals and
additives, largely serving the dyes industry
    ** ROSB up 24.30% so far this year as of last close; 619,744
shares change hands, 5.8x 30-day avg



($1 = 74.6060 Indian rupees)

 (Reporting by Vishwadha Chander in Bengaluru)
 ((Vishwadha.Chander@thomsonreuters.com))