Tatva Chintan Pharma Chem will launch its Rs 500-crore IPO at a price price of Rs 1073-1083 per share. The issue will open on July 16 and close on July 20, 2021. The public issue comprises fresh issue of shares worth Rs 225 crore and offer-for-sale (OFS) worth Rs 275 crore by existing promoters and shareholders. The issue will open for anchor investors on Thursday, 15 July, one day prior to the opening date for the public offer. Equity shares are proposed to be listed on BSE and National Stock Exchange.
Investors can bid for a minimum of 13 equity shares and in multiples thereof. At the upper price band, they will have to shell out Rs 14,079 to get a single lot. The Tatva Chintan Pharma Chem IPO will have 50 per cent reserved for qualified institutional buyers (QIBs) and 15 per cent will be reserved for non-institutional investors (NIIs). The remaining 35 per cent of the issue will be available for retail investors. ICICI Securities and JM Financial are the book lead managers to the issue. Link Intime India Private Ltd is the registrar to the issue.
Upon successful listing, Tatva Chintan will join the likes of Aarti Industries, Navin Fluorine, Alkyl Amines Chemicals, Vinati Organics, and Fine Organics Industries. The average cost of acquisition of equity shares held by the selling shareholders namely Ajaykumar Mansukhlal Patel, Chintan Nitinkumar Shah, Shekhar Rasiklal Somani, Ajay Mansukhlal Patel HUF, Priti Ajaykumar Patel, Darshana Nitinkumar Shah, Kajal Shekhar Somani, Samirkumar Rasiklal Somani and Shitalkumar Rasiklal Somani is Rs 1.59, Rs 3.06, Rs 2.87, Rs 4, Rs 2.49, Rs 1.11, Rs 2.69, Rs 1.65 and Rs 0.91, respectively. The weighted average return on net worth for the last three fiscals is 30.75 per cent.
Tatva Chintan Pharma Chem has planned to utilise the net proceeds towards funding the capital expenditure requirements for expansion of Dahej Manufacturing Facility worth Rs 147.1 crore, and funding capital expenditure requirements for upgradation at our R&D facility in Vadodara worth Rs 23.9 crore,and for general corporate purposes.
With multiple players across the globe and no substantial market share, the global phase transfer catalyst market is highly fragmented in nature. The key manufacturers in the Indian market are Tatva Chintan, Dishman Group, Delta Finochem, Pacific Organics Private Limited, Otto Chemie, TCI Chemicals and a few other smaller players. Tatva Chintan, Delta Finochem, Dishman group and Pacific Organics Private Limited are the major players in the export market with Europe being the leader in terms of imports from India. Tatva Chintan is among leading global producers of an entire range of Phase Transfer Catalysts in India and one of the key producers across the globe. With a growth in the Pharmaceuticals and allied sectors, the phase transfer catalyst section will see a huge demand from across the globe.