Tatva Chintan Pharma Chem shares had a solid debut at 95 percent premium on the BSE, thereby meeting the analyst’s expectations and grey market premium on July 29. The company’s stock commenced at Rs 2111.80, compared to the issue price of Rs 1,083.
During July 16-July 20, the 500 crore public issue of the chemical company was subscribed by nearly 180.35 times. The part that was kept aside for qualified institutional buyers was subscribed around 185.23 times, while the non- institutional buyers and the retail investors subscribed nearly 512.22 and 35.35 times respectively.
According to experts, the company’s healthy financials coupled with strong return ratios, diversified product portfolio, a global presence along with a strong customer base and the sweeping response to the IPO might drive up the listing price premium beyond 100 percent.
The grey market also symbolized a grand listing of Tatva Chintan. As per reports, the shares of the company were available at a premium of Rs 1,140 – 1,150 or 105 – 106 percent over the issue price.
Tatva Chintan Pharma Chem offers a range of products with its applications among the high growth segments. Furthermore, the company develops a variety of disinfectants, catalysts, agro and pharmaceuticals intermediaries and specialty intermediaries among others. The company also provides a good product mix across sectors of agro chemicals, pharmaceuticals and personal care.
Tatva Chintan Pharma Chem is the only commercial manufacturer of structure – directing agents (SDAs) for Zeolites in India. Beside, it also holds the second largest position across the borders. The company is also considered as the leading global producers for an entire range of phase transfer catalysts (PTCs) in India and across the globe.
Reportedly, the company is set to utilize the net proceeds from its fresh issue for stretching its manufacturing facility in Dahej together with upgrading the R&D facility in Vadodara. The offering consisted a fresh issue of around Rs 225 crore for a sale of Rs 275 crore by shareholders.
According to reports, the company put forward a increase in profit at a CAGR of 59.50 percent during FY19- FY21. The Return ratio had been solid with return on equity at nearly 31.5 percent. The return on capital employed of 33 percent in FY21. In FY21, the company recorded a 14 percent year on year growth in its revenue along with a 20 percent rise in operating profit with a margin expansion of around 100 bps YoY at 22 percent.