Marquee global investors who participated in the anchor book were Goldman Sachs, HSBC Global, Abu Dhabi Investment Authority, Aberdeen Standard Asia, and Nomura
Mumbai: Tatva Chintan Pharma Chem Ltd's initial public offer saw strong buying on the first day on Friday with the issue getting nearly 2.4 times subscription led by robust retail participation. The IPO was subscribed within few minutes of opening.
The IPO, which has a ₹1073-1083 price band, received bids for 7.66 million shares which was 2.35 times the issue size of 3.26 million shares till 1.20pm. The retail portion was subscribed over 4.42 times.
Retail investors placed 7.15 million bids against the 1.62 million shares on offer, while the portion reserved for non-institutional investors was subscribed 0.34 times while qualified institutional bidders subscribed 0.01 times.
Tatva Chintan raised ₹150 crore from 22 anchor investors. Marquee global investors who participated in the anchor book were Goldman Sachs, HSBC Global, Abu Dhabi Investment Authority, Aberdeen Standard Asia, and Nomura.
Axis MF, Aditya Birla Sun Life, Nippon Life, SBI Life Insurance, SBI MF, ICICI Prudential, and HDFC Trustee were among domestic investors in the anchor book bidding.
The total issue size will be at ₹500 crore. The offer comprises a fresh issue of ₹225 crore and an offer for sale of ₹275 crore by its existing promoters and shareholders.
ICICI Securities and JM Financial are the book lead managers to the issue.
Proceeds from the issue will be used for funding capital expenditure requirements for the expansion of its Dahej manufacturing facility and funding for upgrading its R&D facility in Vadodara.
As of December 2020, the company had an installed production capacity of 280 KL and 13 Assembly Lines at its manufacturing facilities. Pursuant to the proposed expansion, it intends to enhance the installed capacity at its manufacturing facilities by 200 KL and 14 Assembly Lines.
For fiscal year 2020, the company posted a revenue of ₹263.24 crore against ₹206.31 crore a year ago. Net profit for the period stood at ₹37.79 crore versus ₹20.54 crore. As of January 2020, the firm had total outstanding debt of ₹83.17 crore.
Tatva Chintan is a specialty chemical manufacturing company engaged in the manufacture of a diverse portfolio of structure-directing agents, phase transfer catalysts, electrolyte salts for supercapacitor batteries and pharmaceutical and agrochemical intermediates, and other specialty chemicals
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