Tatva Chintan IPO: Key Details
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Tatva Chintan Pharma Chem Limited, incorporated in 1996, 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”).
They are the largest and only commercial manufacturer of SDAs for zeolites in India. It also enjoys the second-largest position globally. In addition, they are one of the leading global producers
of an entire range of PTCs in India and one of the key producers across the globe.
They serve customers across various industries, including the automotive, petroleum, pharmaceutical, agrochemicals, paints and coatings, dyes and pigments, personal care and flavour and fragrances industries. Apart from India, they also export to over 25 countries, including the USA, China, Germany, Japan, South Africa, and the UK.
- Leading manufacturer of structure directing agents and phase transfer catalysts, with consistent quality
- Global presence with a wide customer base across various industries having high entry barriers
- Diversified specialised product portfolio requiring strong technical know-how
- Modern manufacturing facilities with a focus on ‘green’ chemistry processes
- Strong R&D capabilities
- Experienced Promoters with a strong management team
- Robust Financial Performance
- Expand the existing product portfolio
- Further develop the R&D capabilities
- Increase wallet share with existing customers and continued focus to expand customer base
- Expand existing manufacturing capacities to capitalise on industry opportunities
Proceeds from Tatva Chintan IPO will be used to:
- Funding capital expenditure requirements for expansion of Dahej Manufacturing Facility;
- Funding capital expenditure requirements for upgradation at R&D facility in Vadodara; and
- General corporate purposes
Tatva Chintan IPO: Financials
|Revenue from Ops||₹206.31 Cr||₹2,63.24 Cr||₹300.36 Cr|
|Profit before Excep*||₹26.64 Cr||₹47.60 Cr||₹60.70 Cr|
|Profit after Tax||₹20.54 Cr||₹37.79 Cr||₹52.26 Cr|
|As of March 2020||EPS (Avg)||P/E (Floor)||P/E (Cap)|
|Based on basic EPS||20.99||51.12||51.60|
Comparison with listed industry peers
|As of March 2020||P/E|
|Tatva Chintan Pharma||51.60|
Tatva Chintan IPO Dashboard
|Issue Size||₹500 Cr|
|Fresh Issue||₹225 Cr|
|Offer for Sale||₹275 Cr|
|Face Value||₹1/- per Equity Share|
|IPO Price||₹1073 – ₹1083|
|Lot Size||13 shares|
|Lots||Min 1 – Max 13|
|Initiation of Refunds||27/07/2021|
|Credit of Shares||28/07/2021|
Lot Size and Price
Tatva Chintan IPO: Investor Quota and Shares Offered
|Investor Type||Quota||Shares on Offer|
|RII (Retail)||35%||16,30,941 shares|
Tatva Chintan IPO: Risks
- Unplanned slowdowns or shutdowns in the manufacturing operations could have an adverse effect on business
- Increase in the cost of raw materials could have a material adverse effect on results of operations and financial conditions
- The business is subjected to risks in multiple countries that could materially adversely affect the
business, cash flows, results of operations, and prospects.
- Management has discretion in how it may use the proceeds of the Offer. Any variation in the
utilisation of Net Proceeds would be subject to certain compliance requirements, including prior shareholders’ approval.
- They depend on limited number of suppliers for certain raw materials.
For complete internal and external risk factors, you can refer to the RHP of the company.