Tatva Chintan Pharma Chem Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Tatva Chintan IPO

Tatva Chintan IPO: Key Details

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Company Information

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.

Competitive Strengths

  • 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

Company Strategy

  • 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 Tax20.54 Cr₹37.79 Cr₹52.26 Cr
EPS (Basic)10.2318.8126.02
*Tax and Exceptional Items
As of March 2020EPS (Avg)P/E (Floor)P/E (Cap)
Based on basic EPS20.9951.1251.60

Comparison with listed industry peers

As of March 2020P/E
Tatva Chintan Pharma51.60
Industry Average51.60

Tatva Chintan IPO Dashboard

Issue Details

Issue Size₹500 Cr
Fresh Issue225 Cr
Offer for Sale275 Cr
Face Value₹1/- per Equity Share
IPO Price₹1073 – ₹1083
Lot Size13 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open16/07/2021
Bid Close20/07/2021
Allotment Finalization26/07/2021
Initiation of Refunds27/07/2021
Credit of Shares28/07/2021
Listing Date29/07/2021

Lot Size and Price


Promoter Holding

Pre-Issue100 %
Post-Issue79.2 %

Tatva Chintan IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%9,31,966 shares
NII15%6,98,975 shares
RII (Retail)35%16,30,941 shares
Total100%32,61,882 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.

Tatva Chintan IPO: Registrar and Lead Managers

Registrar of the Issue

Link Intime
C-101, 247 Park
L B S Marg, Vikhroli (West)
Mumbai 400 083
Maharashtra, India

Phone: 022 4918 6200
Email: [email protected]

Lead Managers of the Issue

ICICI Securities Limited
JM Financial Limited

Phone: +91-22-6630 3030 / +91 22 2288 2460
Email: [email protected]

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