The initial public offering (IPO) of specialty chemical company Tatva Chintan Pharma Chem was subscribed 180.36 times on July 20, the final day for bidding. It received bids for 58.83 crore equity shares against the IPO size of 32.61 lakh shares, according to data available on the exchanges.
The portion set aside for retail investors was subscribed 35.35 times, while that for non-institutional investors is subscribed 512.22 times.
The qualified institutional buyers have placed bids for 185.23 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 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.
"At the offer for sale price of Rs 1,083, the stock is valued at 31.3X FY24 earnings. The high valuations are justified given the high growth potential, dominant producer status, exposure to green energy, and strong balance sheet," said Ventura Securities.
It recommended a 'Subscribe' rating for listing gains.
First Published: IST