Tatva Chintan Pharma Chem IPO: Opens today; Key details an investor should know before subscribing

Tatva Chintan Pharma Chem's initial public offering (IPO) will open for subscription today. The offer will close on Tuesday, July 20, 2021.

The specialty chemicals manufacturer in consultation with merchant bankers has fixed a price band at Rs 1,073 to Rs 1,083 per equity share. Investors can put in bids for a minimum of 13 equity shares, in a single lot, and in multiples of 13 equity shares thereafter. The minimum investment that can be made by a retail investor is Rs 14,079 (at the upper band).

The Gujarat-based company seeks to raise Rs 500 crore through the offer. It comprises a fresh issue of Rs 225 crore and an offer for sale of up to Rs 275 crore by existing selling shareholders.

Of the total shares on offer, 50 per cent will be available for allocation on a proportionate basis to qualified institutional buyers (QIBs) and another 15 per cent of the offer shall be available for non-institutional bidders. The remaining 35 per cent of the offer will be available for retail investors.

The fresh issue proceeds will be utilised for funding capital expenditure requirements for expansion of Dahej manufacturing facility, upgradation of an R&D facility in Vadodara and general corporate purposes.

ICICI Securities and JM Financials are its book running lead managers. Link Intime India is the registrar to the offer.

Besides, the company has raised Rs 150 crore from anchor investors ahead of the IPO opening by offering stocks at Rs 1,083 per share. Some Foreign Investors in the list of anchor investors include Goldman Sachs, HSBC Global, Nomura, Abu Dhabi Inv Authority.

Tatva Chintan incorporated in June 1996 is a specialty chemicals manufacturing company. It is engaged in the manufacture of a diverse portfolio of structure-directing agents (SDAs), phase transfer catalysts (PTCs), electrolyte salts for supercapacitor batteries and pharmaceutical and agrochemical intermediates and other specialty chemicals (PASC). In fact, it is the largest and only commercial manufacturer of SDAs for zeolites in India. It also enjoys the second-largest position globally.