Tatva Chintan Pharma Chem Lists At 95% Premium On Stock Market Debut

Shares of Tatva Chintan Pharma Chem Ltd., that witnessed the second-most subscription for its initial public offering so far this year, more than doubled on market debut.

The specialty chemical maker’s stock listed at Rs 2,111.85 apiece on the National Stock Exchange, a premium of 95% to its issue price of Rs 1,083. The stock saw an intraday high of Rs 2,534.20 (up 134% over IPO price) thereafter.

The Gujarat-based company’s Rs 500-crore issue was subscribed more than 182 times, surpassing online platform gaming Nazara Technologies’ IPO that received 175.46 times more bids than the shares on offer.

Tatva Chintan manufactures a diverse portfolio of structure-directing agents (used to make absorbents), electrolyte salts for super capacitor batteries, pharmaceutical and agrochemical intermediates, among others, at its two manufacturing units at Ankleshwar and Dahej in Gujarat.

It is the largest and the only commercial manufacturer of SDAs for zeolites in India and second-largest globally. The company is also a leading global producer of an entire range of phase transfer catalysts.

Tatva Chintan’s revenue grew at an annualised rate of 21% in the last three financial years. It earns over two-thirds of its revenue from exports, with Germany, the U.S. and China together accounting for 54.20%.

Tatva Chintan plans to utilize Rs 147.10 crore from the proceeds towards funding capital expenditure requirement for its Dahej manufacturing plant, and Rs 23.97 crore to upgrade a research & development facility at Vododara, expected to be completed by the end of FY23.

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