Tatva Chintan Pharma Chem Ltd saw its Rs 500-crore initial public offering (IPO) open on July 16 and close on July 20. In that time frame, the massive issue was subscribed 180.36 times as per information on Chittorgarh. The IPO was subscribed a total of 35.5 times in the retail category, 185.23 times in the qualified institutional buyer (QIB) category and 512.22 times in the non-institutional investor (NII) category. These subscription numbers came to be around 17:00 pm on July 20, 2021, as the Tatva Chintan IPO trading came to a close.
The Grey Market Premium (GMP) for Tatva Chintan Pharma Chem today is at Rs 900. This indicated that shares on the grey market are trading at Rs 1,973 to Rs 1,983 per share. This is around 83 per cent higher than the price band of Rs 1073 to Rs 1083 per equity share that was listed for the IPO. When the company opened its IPO to the market on 16 July, it started on the grey market at a lower Rs 600. This saw an upward trend as the price hit Rs 730 towards the last day of bidding. On Wednesday the price hit Rs 775, thanks to a healthy IPO close, according to a report by the Mint.
According to the Red Herring Prospectus (RHP) that Tatva Chintan Pharma Chem filed, the public issue is most likely going to see an allotment date of July 26, 2021, while the shares are set to be credited to successful bidders on July 28. The listing is most likely going to be on July 29 as per reports. The IPO is set to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on the given date and investors can view their allotment status there.
The IPO allotment status is not currently available as the process to share that data takes six working days from the close of the IPO. Once the data is released, however, the IPO allotment status can be checked on the BSE and the Registrar’s website before the date of listing. The Registrar is responsible for the allotment and refunding process.
The company had allotted a total of 3,261,882 shares. From these shares, 931,966 were allotted for the QIBs, 698,975 shares were given to the NIIs and the retails segment got an allotment of 1,630,841 shares.
Tatva Chintan Pharma Chem Limited was started in 1996. It is a chemical manufacturing company and stands as one of the leading global producers of phase transfer catalysts (PTCs) in India. It manufactures other chemicals such as structure-directing agents (SDAs), pharmaceutical and agrochemical intermediates, and other specialty chemicals.
Driven by the higher sales from SDAs and PASCs, the company’s revenue grew at 21 per cent CAGR over FY19-21. PAT growth stood at 60 per cent CAGR during this same period. The company has a healthy balance sheet position with lower D/E ratio of 0.54x as of FY21. Its RoE stands at a strong 32 per cent in FY21.
Hemang Kapasi, Head of Equities, Sanctum Wealth Management said, “Tatva Chintan Pharma Chem Limited is a niche speciality chemical manufacturing company and is the largest and only commercial manufacturer of SDAs (structure directing agents) for zeolites in India. It also enjoys the second-largest position globally. In addition, the company is one of the leading global producers of an entire range of PTCs (phase transfer catalyst) in India and one of the key producers across the globe. They also manufacture electrolyte salts for super capacitor batteries and pharmaceutical and agrochemical intermediates and other specialty chemicals (PSACs). Apart from customers in India, the company also exports products to over 25 countries, including the US, China, Germany, Japan, South Africa, and the UK accounting to ~70% of revenues. As on March 31, 2021, it manufactured over 154 products."
“The Company is well placed to capture the growth is specialty chemicals space, as it offers solutions through green chemistry applications through its leadership position in the given segments and are capable to offer new products through enhanced thrust on R&D capability. The financial numbers offer credence with Revenue / EBITDA/ PAT CAGR of ~21%/39%/60% over FY19-21 and return ratios in excess of 20%," added Kapasi.