Tatva Chintan IPO: According to market observers, continuous rise in Tatva Chintan share price in the grey market and robust response from the IPO subscribers indicate strong listing of the public issue
Tatva Chintan IPO (Initial Public Offering) got subscribed over 180 times of its offer, which is second most subscribed public issue of the year 2021 after MTAR Technologies IPO. After this stellar response from the bidders, all eyes are now set on the Tatva Chintan IPO allotment date as the Tatva Chintan IPO GMP (grey market premium) has also shot up from yesterday's ₹730 to ₹775 today. According to market observers, continuous rise in Tatva Chintan share price in the grey market and robust response from the IPO subscribers indicate strong listing of the public issue.
Market observers said that Tatva Chintan IPO grey market premium in the last 5 days has jumped from ₹650 to ₹775 that means market is expecting listing of the public issue at around 70 per cent premium against its issue price of ₹1073 to ₹1083.
Speaking on the rise in Tatva Chintan IPO GMP Avinash Gorakshkar, Head of Research at Profitmart Securities said, "Grey market premium is taken as a short-term indicator of the public issue trend but it is completely unofficial and it keeps changing on daily basis. However, IPO bidders take this market response as cue while bidding for the issue. The way, Tatva Chintal IPO GMP has been rising; it must have played its role in such a robust subscription of the public issue. However, if we look at the financials of the company, it also helped the promoters of the company to attract such a huge number of subscribers for its offer. So, all eyes are set on the share allotment date as bidders will be waiting for the finalisation of share allotment process as there is huge listing gain expected form the IPO."
Highlighting the strong financials of Tatva Chintal IPO; Ridhima Goyal, Research Analyst at Marwadi Shares and Finance said, "The company is going to list at the PE multiple of 41.62 with a market cap of ₹24004.76 Mn, while its peers namely Aarti Industries Ltd and Navin Fluorine International Ltd is trading at a PE multiple of 59.54 and 73.95 respectively. It is a niche global player in specialty chemicals with SDAs in centre stage, having a globally renowned clients list and reasonable valuation as compared to its listed peers."
Tatva Chintan IPO allotment is expected on 26th July 2021 while listing of shares is expected to take place on 29th July 2021, informs the Red herring Prospectus (RHP) of the public issue.