Tatva Chintan Pharma shares will list on the bourses tomorrow. The specialty chemical maker's Rs 500 crore IPO, which was open between July 18 and 20, had received a massive interest from the investing community. The IPO was subscribed 180.36 times, receiving bids for over 58.83 crore shares against the total issue size of over 32.61 lakh shares. The portion reserved for retail investors was subscribed 35.35 times, the qualified institutional buyers segment attracted 185.23 times and the non-institutional investors group, 512.22 times.
The IPO consisted of a fresh issue of Rs 225 crore and an offer of sale of Rs 225 crore by existing promoters and shareholders.
Tatva Chintan Pharma will be the fourth specialty chemical company go public in calendar year 2021 after Anupam Rasayan India, Clean Science & Technology and Laxmi Organic Industries.
Tatva Chintan Pharma, promoted by Ajaykumar Mansukhlal Patel, Chintan Nitinkumar Shah and Snehkar Rasiklal Somani, is among the leading global producers of phase transfer catalysts (PTCs) in India. Located in Vadodara, it exports products to more than 25 countries, including the United States, China, Germany, Japan, South Africa and United Kingdom.
ICICI Securities and JM Financial are the book running lead managers to the issue, whereas Link Intime India is the registrar to the issue.
Should you subscribe to the Tatva Chintan Pharma IPO
"The company (Tatva Chintan Pharma) is expected to witness strong growth for next 2-3 years given its expansion plans. It is well placed to tap opportunity in the fast growing specialty chemical space with increasing focus on green chemistry by leveraging its strong R&D capabilities," Motilal Oswal said in a note to its investors.
The issue is valued at 45.9x FY21 P/E on post issue basis, which appears reasonable compared to peers (avg. P/E of 59x) as it enjoys higher earnings growth (62 per cent CAGR vs avg. 38 per cent CAGR for peers over FY18-21). Hence, we recommend Subscribe," Motilal Oswal added.
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