Blockbuster debut: Tatva Chintan Pharma Chem lists at 95% premium
Gujarat-based specialty chemical manufacturer Tatva Chintan Pharma Chem got listed at Rs 2,111.85, marking a premium of 95% on the NSE.
Shares of specialty chemical company Tatva Chintan Pharma Chem made a blockbuster market debut on Thursday. The stock opened for trading at Rs 2,111.85 apiece on the National Stock Exchange, compared to the issue price of Rs 1,083 marking a premium of 95% or Rs 1,028.85 per share. On the BSE the stock got listed at Rs 2,111.80, a premium of Rs 1,028.80 or 95%.
The Rs 500 crore public issue was subscribed a whopping 180.36 times making it the second-highest subscription seen among IPOs in 2021. The IPO received bids for 58,83,08,396 shares against 32,61,882 shares on offer, as per data available with the NSE. The portion meant for qualified institutional buyers(QIBs) was subscribed 185.23 times, those reserved for non-institutional investors a whopping 512.22 times and retail individual investors(RIIs) quota received 35.35 times subscription on Friday (July 16), the closing day of the subscription.
The company’s initial public offer (IPO) aggregating up to Rs 500 crore comprised a fresh issue of up to Rs 225 crore and an offer for sale of up to Rs 275 crore. The Gujarat-based company will utilise its net proceeds from fresh issue for funding expansion of its Dahej manufacturing facility and up-gradation at its R&D facility in Vadodara.
Tatva Chintan Pharma Chem is a chemical manufacturing company that manufactures structure-directing agents (SDAs), phase transfer catalysts (PTCs), pharmaceutical and agrochemical intermediates, and other specialty chemicals. It is among the largest manufacturer of SDAs for zeolites in India. As of March 2021, the company offered 47 products under its SDA product portfolio, 48 products under its PTC product portfolio, six products under its electrolyte salts for supercapacitor batteries portfolio and 51 products under its PASC portfolio.
For the financial year ended March 31, 2021, the company reported total revenue of Rs 306.29 crore compared to Rs 206.8 crore in FY19. Its bottom line more than doubled in the last three financial years as it reported a profit after tax of Rs 52.26 crore in FY21 versus Rs 20.54 crore profit posted in FY19.