Tatva Chintan Pharma Chem IPO subscribed 4.5 times on Day 1: Here’s everything you need to know

Tatva Chintan Pharma Chem IPO subscription: The initial public offering (IPO) of Vadodara-based Tatva Chintan Pharma Chem has a price band of Rs 1,073-1,083 per share and will be open for subscription during July 16-20, 2021. The issue got oversubscribed within a few hours on the first day itself.

The initial public offering (IPO) of specialty chemical manufacturing company Tatva Chintan Pharma Chem, opened for subscription earlier today and got oversubscribed within a few hours itself. So far, the issue was subscribed 4.50 times by the end of the first day of bidding.

It received bids for 1,46,85,125 shares across both the stock exchanges against 32,61,882 shares on offer, data from the BSE showed.

At the end of the first day, the shares allocated for the Qualified Institutional Buyers (QIBs) were subscribed 0.50 times, while those for Non Institutional Investors got subscribed 1.13 times and that of Retail Individual Investors (RIIs) was subscribed 8.23 times, the data showed.

The Vadodara-based company is into specialty chemical manufacturing and it exports most of its products to over 25 countries, including the US, China, Germany, Japan, South Africa and the UK.

The Tatva Chintan IPO will be available for subscription till Tuesday, July 20, 2021, and the price band of the Vadodara-based firm has been fixed at Rs 1,073-1,083 per share. The public issue is expected to fetch up to Rs 500 crore.

Investors who wish to subscribe to Tatva Chintan IPO can bid in a lot of 13 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,079 to get a single lot of Tatva Chintan Pharma Chem. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).

The applicants should also note that the cut-off time for UPI mandate confirmation is Thursday, July 22, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.

Tatva Chintan IPO comprises Rs 225 crore through a fresh issue of shares and the remaining Rs 275 crore will be an offer for sale (OFS) by the existing investors.

ICICI Securities and JM Financial are the book running lead managers to the Tatva Chintan Pharma Chem IPO while Link Intime India is the registrar of the issue.

The research teams at Motilal Oswal Financial Services and Anand Rathi Share and Stock Brokers in their respective notes have recommended “Subscribe” to the offer.

Motilal Oswal Financial Services in its IPO note stated that, “We like TCPCL due its leadership position, wide product portfolio, strong client relationship and high entry barriers. The company 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. 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.”

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