All you need to know about the Tatva Chintan IPO

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The IPO of chemical company Tatva Chintan opened for bidding on Friday
The IPO has fixed the
public issue price band at ₹1,073-1,083 per share
The company has managed to raise Rs 150 crore from 22 anchor investors

Written By:Priyadarshini

Updated: July 19 2021 12:43:05 AM ET Mumbai, Maharashtra, India

The initial public offering (IPO) of Gujarat-based specialty chemical company Tatva Chintan Pharma Chem Limited opened for bidding on Friday, July 16. The IPO has fixed the public issue price band at ₹1,073-1,083 per share and will remain open till July 20. The opening saw an impressive response from the investors with as much as 4.55 times subscribers by the end of the day.

The second day witnessed 17.51 times subscription of the retail portion and 0.51 times subscription of the qualified institutional buyers (QIBs) portion. According to the data compiled by the stock exchanges , the overall issue has already been subscribed over 10 times with 4.76 times subscription of the non-institutional investors portion.

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Tatva Chintan Pharma Chem Limited has managed to raise Rs 150 crore from 22 anchor investors, before the share sale kicks off.

As per market observers, Tatva Chintan IPO grey market premium (GMP) falls between Rs 750 and Rs 760, more than Friday’s GMP of ₹710-720.

Promoter and promoter group, including Ajaykumar Mansukhlal Patel, Chintan Nitinkumar Shah, and Shekhar Rasiklal Somani have put an offer for sale of up to ₹275 crore, apart from the fresh issue of ₹225 crore out of the Rs 500 crore offer. Dahej manufacturing facility will be expanded and the company’s R&D facility in Vadodara, Gujarat, will be upgraded using the proceeds from the issue.

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Link Intime India stands as the registrar to the offer, while ICICI Securities, JM Financial are the book lead managers. Furthermore, the company’s share will be tentatively listed on NSE and BSE on July 29, with the allotment taking place on July 26.

Tatva Chintan Pharma Chem Limited is a specialty chemical manufacturing company that deals with the production of structure directing agents (“SDAs”), phase transfer catalysts (“PTCs”), electrolyte salts, pharmaceutical and agrochemical intermediates and other specialty chemicals.