19 Jul , 2021 By : Kanchan Joshi
Gujarat-based specialty chemical company Tatva Chintan Pharma Chem Limited initial public offering (IPO) opened for bidding on Friday i.e., 16 July and it will remain open for subscription till 20 July with the price band of the public issue fixed at Rs1,073-1,083 per share.
Tatva Chintan's IPO was fully subscribed within hours of opening on Friday as the offer received a strong response from investors, especially retail investors. At the end of the day, it was subscribed 4.55 times. The offer received 14.71 million equity shares against the IPO size of 3.26 million equity shares, data compiled by the stock exchanges showed. The company raised Rs150 crore from 22 anchor investors ahead of its share sale.
As per market observers, Tatva Chintan IPO grey market premium (GMP) is in the range of Rs750-760, higher as compared to Friday's GMP of Rs710-720. The grey market is an unofficial platform, wherein trading starts after the announcement of IPO price band till the listing of IPO shares.
The Rs500 crore offer comprises a fresh issue of Rs225 crore and an offer for sale of up to Rs275 crore by promoter and promoter group including Ajaykumar Mansukhlal Patel, Chintan Nitinkumar Shah, and Shekhar Rasiklal Somani. Proceeds from the issue will be used for funding expansion of its Dahej manufacturing facility and upgradation at its R&D facility in Vadodara.
ICICI Securities, JM Financial are the book lead managers to the issue whereas Link Intime India is the registrar to the offer. The share allotment is likely to take place on 26 July while the tentative date for listing of the company's shares on NSE and BSE is 29 July.
Tatva Chintan is a specialty chemical manufacturing company 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.
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