Tatva Chintan Pharma Chem IPO ends with robust subscription

Published on Jul 21, 2021 09:14

The initial public offer (IPO) of specialty chemicals manufacturing company Tatva Chintan Pharma Chem received bids for 58.83 crore shares as against 32.61 lakh shares on offer, according to stock exchange data. The issue was subscribed 180.36 times.

The non-institutional investors (NIIs) category was subscribed 512.22 times. The qualified institutional buyers (QIBs) category was subscribed 185.23 times. The retail individual investors (RIIs) category was subscribed 35.35 times.

The issue opened for bidding on Friday (16 July 2021) and closed on Tuesday (20 July 2021). The price band of the IPO was fixed at Rs 1073-1083 per share.

The offer comprised of a fresh issue of equity shares aggregating to Rs 225 crore by the company and an offer for sale by selling shareholders aggregating to Rs 275 crore.

Ahead of the IPO, Tatva Chintan Pharma Chem on 15 July 2021 allotted 13,85,040 equity shares to 22 anchor investors, at Rs 1,083 per equity share, aggregating to Rs 149.99 crore.

The proceeds from the offer for sale shall be received by the selling shareholders. The company proposes to utilize the net proceeds of the fresh issue towards funding capital expenditure requirements for expansion of its Dahej manufacturing facility amounting Rs 147.1 crore, funding capital expenditure requirements for upgradation at its R&D facility in Vadodara amounting Rs 23.971 crore and balance towards general corporate purposes.

The company reported a consolidated net profit of Rs 52.26 crore and total income of Rs 300.36 crore in the twelve months ended 31 March 2021.

Tatva Chintan Pharma Chem is a specialty chemicals manufacturing company engaged in the manufacturing of a diverse portfolio of structure directing agents (SDAs), phase transfer catalysts (PTCs), electrolyte salts for super capacitor batteries and pharmaceutical and agrochemical intermediates and other specialty chemicals (PASC).

It is the largest and only commercial manufacturer of SDAs for zeolites in India. It also enjoys the second largest position globally. In addition, the company is one of the leading global producers of anentire range of PTCs in India and one of the key producers across the globe. As on 31 March 2021, the company manufactures over 154 products.