The portion reserved for retail investors was subscribed 35.68 times, non-institutional investors' portion was subscribed 516.99 times, while that set aside for qualified institutional buyers was subscribed 186.96 times.
Brokerage firm KR Choksey, in an IPO note, said, "Tatva Chintan has recorded strong growth in terms of revenues and profitability in recent years. Revenues have grown at a cumulative annual growth rate (CAGR) of 21.7% over FY2019-21."
"At the upper end of the price band of ₹1083 and earnings per share (EPS) of ₹26.02 for FY21, the price multiple works out to be 41.6 times, which is at a significant discount compared to the industry average of 56 times. On account of strong growth potential, dominant manufacturer status, potential play on ‘green chemistry’ and discounted valuation compared to its peers," it added.
Last week, Tatva Chintan Pharma Chem raised ₹150 crore from 22 anchor investors.
The speciality chemicals company plans to raise Rs500 crore through its public issue which comprises a fresh issue of ₹225 crore worth of equity shares and an offer for sale of ₹275 crore worth of shares by existing shareholders. The price band for the offer has been fixed at Rs1,073-1,083 per equity share.
Proceeds from the issue will be used to fund the expansion of its Dahej manufacturing facility and upgradation at its R&D facility in Vadodara.
The company has a diverse portfolio of structure directing agents, phase transfer catalysts, electrolyte salts for super capacitor batteries and pharmaceutical and agrochemical intermediates and other speciality chemicals.
“Tatva Chintan Pharma Chem Ltd. (TCPCL) is one of the leading global producers of an entire range of PTCs in India and one of the key producers across the globe. It is the largest and only commercial manufacturer of SDAs for zeolites in India," said brokerage house Hem Securities.
“On the valuation front, considering the upper price band, diluted EPS and FY 21 earnings, the company is valued at 45.9 times price equity which is at a discount when compared to its listed industry peers. Its stable financial performance and growth opportunities provide visibility for the long term," the brokerage added.
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