Tatva Chintan Pharma Chem IPO fully subscribed within 70 minutes of bidding on Day 1

Tatva Chintan Pharma Chem’s initial public offering (IPO) was fully subscribed within the first hours of bidding on Day 1. The offer was subscribed 3.14 times by 3 pm hrs on July 16. 

In the week that Zomato’s public offer rocked Dalal Street, Tatva Chintan’s IPO has enjoyed a big opening, drawing an enthusiastic response. Investors bid for 1.02 crore equity shares against the IPO size of 32.61 lakh equity shares, Money Control presented data available on the exchanges. The company’s reserved portion was subscribed 6.02 times.

Also Read: Why Zomato IPO is a ‘watershed moment’ for Indian markets

Tatva Chintan Pharma Chem is a specialty chemicals manufacturing company engaged in the manufacture of a diverse portfolio of structure-directing agents (SDAs), phase transfer catalysts (PTCs), electrolyte salts for supercapacitor batteries and pharmaceutical and agrochemical intermediates and other specialty chemicals (PASC).

Non-institutional investors subscribed 61% of their portion and the qualified institutional buyers’ portion was subscribed 1%.

 The brokerage is positive on the long-term prospects of the company and recommended a subscribe rating to the IPO.

Anand Rathi financial services said in a statement, “And the company was able to improve its margin along with better working capital management and operating leverage is likely to play out, it can aid free cash flow (FCF) considerably over the years”, according to reports from Money Control.

Also Read: How Zomato founder Deepinder Goyal cut jitters ahead of mega IPO. Read on

On July 15, out of the total issue size of Rs 500 crore, Tatva Chinta mobilised about Rs 150 crore. This was done at the price band that ranged between Rs 1,073 and Rs 1,083 per equity share.

The funds raised from the fresh issue will be directed towards expanding the Dahej manufacturing facility and upscale the research and developments efforts that are underway in Vadodra.