Tatva Chintan Pharma Chem IPO subscribed 4.5 times on day 1 of opening; all you need to know

The Tatva Chintan Pharma Chem initial public offering (IPO) opened on Friday, 16 July. The issue was subscribed fully within a few hours after it opened, reported Moneycontrol.

Against the IPO size of 32.61 lakh equity shares, subscribers offered bids for 1.46 crore equity shares. The Tatva IPO was subscribed 4.50 times on its first day of opening.

The portion reserved for qualified institutional buyers was subscribed 0.50 times. Non-institutional investors subscribed the IPO 1.13 times of their reserved portion. Retail investors subscribed their portion the most as 8.23 times more bidding was received for it than the allotted portion.

The Tatva IPO consists of an offer for sale of Rs 275 crore by the promoter group. Fresh issues worth Rs 225 crore are also a part of the Rs 500 crore IPO. The shareholding of promoters is going to be reduced to 79.2 percent after the issue.

The price band has been fixed at Rs 1,073-Rs 1,083 per equity share. Registrar of the Tatva IPO is Link Intime India Private Limited.

The company is going to use the funds raised from the IPO to expand its manufacturing facility in Dahej. It will also upgrade the R&D facility located in Vadodara.

With higher volume growth across the segments, the revenue growth of Tatva was 21.7 percent CAGR in FY19-21. On 15 July through the anchor book, the IPO was able to mobilise Rs 150 crore at the higher end of the band price.

The company is a specialty chemicals company. It manufactures several chemical materials including electrolyte salts for super capacitor batteries, structure directing agent, pharmaceutical and agrochemical intermediates and phase transfer catalyst.