Ahead of IPO, Tatva Chintan Pharma raises about Rs 150 crore from anchor investors

The Initial Public Offering of Tatva Chintan will be open tomorrow and will be available for bid in the price band of Rs 1073- 1083

Chemicals company Tatva Chintan Pharma Chem Limited on Thursday raised Rs 149.99 crores from 22 anchor investors at the upper price band of ₹1083 per equity share ahead of their IPO. The company is set to open their public offer on Friday, July 16. According to the company’s filing with the BSE, its board of directors approved the allocation of 13,85,040 equity shares.

Of these, 6,46,360 equities were allocated to 7 domestic mutual funds- Axis MF, Aditya Birla Sun Life, Nippon Life, SBI Life Insurance, SBI MF, ICICI Prudential, and HDFC Trustee. Some other anchor investors include Goldman Sachs, Abu Dhabi Investment Authority, HSBC Global, and Nomura.

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The Initial Public Offering of Tatva Chintan will be open tomorrow and will be available for bid in the price band of Rs 1073- 1083. The issue comprises a mix of equity shares worth Rs 225 crore and an offer for sale(OFS) of Rs 275 crore. Investors would be required to bid for shares in lots of 13, putting the minimum investment required to be at Rs 13,949. The IPO will remain open from 16 to 20 July.

Experts believe that the chemical company is well placed to benefit from the growing anti-China sentiment as it gets a significant chunk of its revenue from exports to countries that seek to diversify their imports.

Tatva Chintan’s total revenue has increased consistently from Rs 206.3 crore in FY19 to Rs 263.2 and Rs 300.4 in FY20 and FY21 respectively. Its PAT (Profit after tax) has increased more than 2.5 times between FY19 and FY21, reaching Rs 52.3 crore. Its revenue grew by a compounded annual growth rate(CAGR) of 20.7% while the EBITDA expanded by 39.4% in the same time period.

Tatva Chintan Pharma Chem Limited is a Gujarat based chemical company founded in June 1996. The company describes itself as the manufacturer of a diverse portfolio of structure-directing agents (SDAs), phase transfer catalysts (PTCs), electrolyte salts for super capacitor batteries and pharmaceutical and agrochemical intermediates and other speciality chemicals (PASC).

Tatva Chintan operates two manufacturing plants in the state of Gujarat at Ankleshwar and Dahej. It is the largest producer of SDAs for zeolites in the country and the second-largest in the world. About 70% of the company’s income is derived from exports to over 25 countries including the USA, China, Germany, Japan, South Africa, and the UK. The capital raised from the IPO will be used by the chemical company for expanding its plant in Dahej and upgrading an R&D facility in Vadodra.