Shariah Stock Status report :: Rossari Biotech IPO :: 10th July 2020
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Shariah Stock Status report :: Rossari Biotech IPO :: INDIA :: 10th July 2020

TICKER

Company Name

Rossari Biotech IPO

Shariah Compliance

SHARIAH COMPLIANT

DP RATIO

0.00253

Business sector screening:

Rossari Biotech is a specialty chemicals manufacturing company in India. The Company is providing customized solutions to the apparel, FMCG, poultry and animal feed industries. The Company operates in three main business categories –
(1) home, personal care and performance chemicals
(2) textile specialty chemicals and
(3) animal health and nutrition products.

The Home, personal care and performance chemicals segment is involved in the manufacture of acrylic polymers. The Company manufactures detergent and soaps, inks, paints and coatings, tiles and ceramics, water treatment chemicals, pulp and paper industries prodcts.
Additionally, the Company manufactures cleaning chemicals for airports, hospitality, food service, commercial laundry, malls, multiplexes, corporates, educational sector and places of worship etc.
The Company is planning to introduce water treatment formulations, specialty formulation for breweries as well as diaries. Textile specialty chemicals segement provides specialty chemicals for textile industry. The Company is the biggest manufacturer of textiles specialty chemicals.
The Animal health and nutrition products segment has diversified into animal health and nutrition. The Company supplies poultry feed supplements, pet grooming and pet treats including for weaning, infants and adult pets. The revenue from its intended foray in to speciality breweries products is not material, although it will be monitored continously.

Given the above, we believe the company passes the sector screening criteria

FInancial Ratio Screening:

(All figures in millions of INR for Year ended 31st March 2020)

Particulars

Amount

Remarks

Estimated market value based on issue price band

₹ 21,569.99

This is estimated by considering the total outstanding shares with the higher band of the issue price. Upon listing, please check the currenct compliance of the stock on Islamicly

Total Debt

₹ 610.12

Islamic Debts

Adjusted Debts

₹ 610.12

LC1 Ratio

2.83%

 - Within limits

Cash

₹ 1,272.33


CC2 Ratio

5.90%

 - Within limits

Accounts Receivables

₹ 941.36


CC1 Ratio

4.36%

 - Within limits

Since all the ratios are within the limit, the stock passes the Shariah financial ratio screens.

Source:
All the above information is based on the Prospectus of the company as well as the latest annual report of the company
Conclusion:
Given the above information, we believe ROSSARI BIOTECH is a Shariah compliant company as per the Shariah screening Criteria.
Please check the compliance of this stock on Islamicly upon listing.

Do watch what one of the pioneering scholar of Islamic finance says about Islamicly here:

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