Tatva Chintan investors rejoice as shares make blockbuster debut on stock market

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Shares of speciality chemical manufacturer Tatva Chintan Pharma Chem made a bumper debut on the stock market on Thursday, doubling the money of people who invested in the company’s initial public offering (IPO).

The shares of Tatva Chintan listed on the National Stock Exchange (NSE) at Rs 2,111.8 per share — a 95 per cent premium over the IPO issue price of Rs 1,083 per equity share.

On the Bombay Stock Exchange (BSE), shares of the company got listed at Rs 2,416, up over 120 per cent on the issue price.

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At 11:55 am, the shares gained further on both benchmark stock market indices. On the NSE, Tatva Chinta jumped by 113 per cent on the issue price at Rs 2,309 per share. It jumped to Rs 2,306 per share on the BSE, up nearly 113 per cent on the issue price.

Analysts are optimistic about the company’s future performance, given its clean record and strong financials.

TATVA CHINTAN IPO AND BROKERAGE VIEW

The company’s Rs 500-crore IPO had opened for subscription on July 16 and closed on July 20. The share allotment for the IPO was finalised a couple of days ago. The public offering comprised a fresh issue of Rs 225 crore and an offer for sale of Rs 275 crore by existing shareholders.

The company’s IPO had received a strong reception from investors and its grey market premium also hinted at a strong listing on the stock market. It may be noted that the grey market is the unofficial market for unlisted stocks.

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The IPO was subscribed over 180 times during July 16-20. The portion set aside for qualified institutional buyers (QIBs) was subscribed 185.23 times while non-institutional investors subscribed 516 times and retail investors subscribed 35.35 times.

Brokerages and analysts expect the company to perform better in future, given the strong financials, diversified product portfolio and a global presence with a wide customer base.

It may be noted that Tatva Chintan is one of the key players in the speciality chemicals segment, with a wide range of product offerings. It manufactures many varieties of disinfectants, catalysts, agro and pharmaceutical intermediates and other speciality intermediates.

The company is also one of the largest commercial manufacturers of structure-directing agents (SDAs) for zeolites in India. In addition, the Vadodara-based company is one of the leading producers of an entire range of phase transfer catalysts (PTCs) in India and globally.

Based on these factors, many brokerages had recommended investors to subscribe to the company’s public issue.

The company said that the proceeds from the fresh issue would be used towards funding capital expenditure requirements for expansion of the company’s Dahej manufacturing facility and upgradation of a research hand development facility in Vadodara, and for general corporate purposes.

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Tatva Chintan shares make a bumper debut, double investors money

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Specialty Chemical manufacturer Tatva Chintan Pharma Chem made its stock market debut on Thursday by listing at ₹2,111.8 per share on the NSE, a 95% premium over issue price of ₹1,083 a piece. On the BSE, shares were trading at ₹2,416, up 123% from issue price. The stock surged to ₹2,448, minutes after listing, doubling investors' money.

Its initial public offering (IPO) had opened for subscription on July 16 and closed on July 20, and the share allotment was finalized on Tuesday. The ₹500 crore IPO was subscribed nearly 180 times on the final day with the the retail segment subscribed 35 times, institutional segment 186 times and non-institutional 516 times.

Incorporated in 1996, the Vadodra-based company is engaged in the manufacture 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 specialty chemicals (PASC). Tatva Chintan operates through two manufacturing facilities situated at Ankleshwar and Dahej in Gujarat. In the year ended March 31, 2021, Tatva Chintan posted a profit of ₹52.26 crore and revenues of ₹300.35 crore.

Many brokerages had recommended ‘Subscribe’ rating to the issue. 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 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.

Proceeds from the fresh issue would be used towards funding capital expenditure requirements for expansion of the company’s Dahej manufacturing facility; up-gradation of a research and development facility in Vadodara, and general corporate purposes.

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New Delhi: Tatva Chintan Pharma Chem IPO has been listed on the share market. Tatva Chintan Pharma Chem shares today saw a stellar debut at 95 per cent at BSE. The company’s share opened at Rs 2111.80. The Tatva Chintan Pharma Chem IPO issue price was Rs 1,083.Also Read - Mumbai Local Train Latest News: No Consensus Yet on Resuming Services, Will Discuss With Railways, Says Rajesh Tope

Tatva Chintan Pharma Chem IPO Listing Price, Share Price Today