Tatva Chintan IPO: Share allotment today. How to check application status
Premium- Tatva Chintan IPO was subscribed over 180 times and shares may list on July 29 on NSE and BSE
The allotment of shares in Tatva Chintan IPO, which was subscribed a whopping 180 times, is likely to be finanlised today. In fact, the ₹500 crore IPO was fully subscribed within hours of opening. The retail segment was subscribed 35 times while qualified institutional buyers(QIBs)185 times and non-institutional investors 512 times. Investors who had applied for Tatva Chintan shares can check the allotment status on the website of its registrar Link Intime India Private Ltd.
Once the allotment in shares are finalised, Tatva Chintan IPO investors can also check their application status on the website of BSE.
According to market observers, Tatva Chintan shares are quoting at a premium of more than ₹1,000 in grey market, suggesting possibility of strong listing. Shares may list on July 29 on NSE and BSE, according to brokerages.
The Vadodara-based specialty chemical manufacturing company had offered shares in the price range of ₹1,073-1,083 per share. The ₹500 crore IPO comprised a fresh issue of up to ₹225 crore and an offer for sale of up to ₹275 crore. Ahead of IPO, Tatva Chintan had mopped up ₹150 crore from anchor investors.
Proceeds from the fresh issue part of the IPO would be used towards expansion of the company's manufacturing facility, up-gradation of a research and development facilities and general corporate purposes.
Many brokerages had recommended subscribe to Tatva Chintan IPO on promising sector outlook, saying that the company is well poised to capitalize on opportunities in agrochemical sector led by proposed capacity expansions, increase in demand, R&D capabilities, and adoption of China plus one strategy by global companies.
"Tatva Chintan is the largest and only commercial manufacturer of SDAs for zeolites (used as a catalyst in several important chemical reactions) in India and enjoys the second largest position globally. It is also one of the leading global producers of an entire range of Phase Transfer Catalysts in India," says Geojit, adding that the company enjoys strong customer relationship with marquee players like Merck, Bayer AG, Asian Paints Ltd.
Tatva Chintan also exports products to over 25 countries. Owing to shutdowns in China and lack of capacity additions in other developed countries, India stands to benefit in the export market, say analysts.
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"Tatva Chintan has a healthy balance sheet position with lower D/E ratio of 0.54x as of FY21. Moreover, RoE remains healthy at 32% in FY21. Well placed to capitalize on opportunities in agrochemical sector led by proposed capacity expansions, increase in demand, R&D capabilities, and adoption of China plus one strategy by global companies. At the upper price band of Rs.1,083, Tatva Chintan is available at a P/E of 46x (diluted) which appears to be reasonably priced," Geojit said.
In the year ended March 31, 2021, Tatva Chintan posted a profit of ₹52.26 crore on revenues of ₹300.35 crore. (With Agency Inputs)
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