Tatva Chintan Pharma Chem GMP, Listing Date: Tatva Chintan Pharma Chem Limited’s share is all set to hit to market on July 29. The Rs 500-crore initial public offering (IPO) saw a massive response from the investors. Tatva Chintan Pharma Chem IPO was subscribed a whopping 180.36 times over the 32.61 lakh shares. The issue opened for subscription from July 16-20. The price band was fixed at Rs 1,073-1,083 per share. The share allotment status of the Tatva Chintan IPO was finalised on July 26.
Tatva Chintan Pharma Chem IPO received bids of over 58.83 crore shares against the total issue size of over 32.61 lakh shares, according to data available with the National Stock Exchange (NSE). The portion reserved for the qualified institutional buyers (QIBs) was subscribed 185.23 times. The non institutional investors put a bid 512.22 times. The shares allocated for retail individual investors (RIIs) was booked 35.35 times, the data showed.
Tatva Chintan Pharma Chem Limited is a chemical manufacturing company is one of the leading global producers of an entire range of phase transfer catalysts (PTCs) in India. The company aims to raise Rs 500 crore through its offer comprising a fresh issue of Rs 225 crore and an offer for sale of Rs 275 crore by shareholders. Ahead of the IPO, the Vadodara-based specialty chemical manufacturing firm had received a bid worth Rs 150 crore from anchor investors on July 15, at the higher end of the Rs 1,073-1,083 price brand.
The grey market premium of Tatva Chintan Pharma Chem on a sharp rise in the last one week. The unlisted share of the company reported to be trading at a price of Rs 1,100, over the issue size, according to IPO Watch. The shares were trading at around Rs 2,183 apiece, signalling a premium of over 100 per cent over the IPO price.
At the issue price, Tatva Chintan Pharma Chem share is demanding a PE of 41.62 times with a market cap of Rs 24,00.47 crore, while Aarti Industries and Navin Fluorine International Navin Fluorine are trading at a PE of 59.54x and 73.95x, respectively.
Tatva Chintan Pharma Chem Limited is one of the leading global producers of an entire range of PTCs in India and one of the key producers across the globe. Over the years, it has built a trong customer relationship with marquee players including Merck, Bayer AG, Asian Paints Ltd. As of FY21, 60 per cent of revenue is derived from its top 10 customers.
The company exports their products to over 25 countries, which accounted for
71% of FY21 revenue from operations. Owing to shutdowns in China and
lack of capacity additions in other developed countries, India stands to
benefit in the export market. The company’s revenue grew at 21 per cent CAGR over FY19-21 driven by higher sales from SDAs and PASCs while PAT growth stood at 60 per cent CAGR led by strong earnings outlook and better operating performance, according to the IPO note by Geojit.