The initial public offering (IPO) of specialty chemical company Tatva Chintan Pharma Chem has been subscribed 14.47 times so far on July 19, the second day of bidding. It received bids for 4.72 crore equity shares against the IPO size of 32.61 lakh shares, according to data available on the exchanges till 4:35 pm.
The portion set aside for retail investors is subscribed 23.33 times, while that for non-institutional investors is subscribed 10.47 times.
The qualified institutional buyers have placed bids for 1.96 times of the total shares reserved for them.
Tatva Chintan already raised Rs 150 crore of the total issue size of Rs 500 crore through the anchor book on July 15 at the higher end of the price band of Rs 1,073-Rs 1,083 per equity share.
The issue, which will close on July 20, consists of a fresh issue of shares worth Rs 225 crore and an offer for sale of shares worth Rs 275 crore by the promoter and promoter group.
The fresh issue proceeds will be utilised for expansion of the Dahej manufacturing facility, and upgradation of the R&D facility in Vadodara.
Most brokerages recommend 'subscribe' on the back of robust financials, strong growth potential, diversification, potential play on green chemistry, discounted valuation compared to its peers and niche global placement.
Considering its niche product profile with diversified applications and dominant domestic production share, Choice Broking believes the company would continue to post robust operating and financial performance in the future.
"Also with the proposed expansion of its capacity, Tatva Chintan will be well-positioned to capitalise on the growth opportunities in the specialty chemicals space," said the brokerage. It assigns a 'subscribe' rating for the issue.
First Published: IST