The Rs 500-crore initial public offering (IPO) of Tatva Chintan Pharma Chem opens for public subscription today. This is the fourth specialty company to launch its IPO in 2021.
The company, on July 15 has raised Rs 149.99 crore from 22 anchor investors ahead of IPO opening. In consultation with merchant bankers, it finalised the allocation of 13,85,040 equity shares to anchor investors, at Rs 1,083 per equity share.
The IPO share allotment is expected to be finalised around July 26, and the funds will be refunded or unblocked from ASBA (Application supported by blocked amount) account around July 27, 2021. Equity shares issued will be credited to demat accounts of eligible investors around July 28, and shares are likely to be listed on bourses on July 29.
Here are key things to know about the public issue and the company:
Tatva Chintan Pharma Chem manufactures a wide range of structure-directing agents (SDAs), phase transfer catalysts (PTCs), electrolyte salts for supercapacitor batteries, pharmaceutical and agrochemical intermediates, and other specialty chemicals (PASC).
In India, the firm is the only commercial maker of SDAs for zeolites. As of March 31, 2021, they manufactured over 154 products.
It operates two production plants in Gujarat, one in Ankleshwar and the other in Dahej.
The company serves customers across various industries, including the automotive, petroleum, pharmaceutical, agrochemicals, paints and coatings, dyes and pigments, personal care, and flavour and fragrances industries. It exports products to over 25 countries, including the USA, China, Germany, Japan, South Africa, and the UK.
The company’s customers include Merck, Bayer AG, Asian Paints, Ipox Chemicals KFT, Laurus Labs, Tosoh Asia Pte Ltd, SRF, Navin Fluorine Internationa, Oriental Aromatics, Atul, Otsuka Chemical, Meghmani Organics, Divi's Laboratories, Hawks Chemical Company, Firmenich Aromatics, Jiangsu Guotai Super Power New Materials, and Jade Chem Co.
Promoters & Management
The company is promoted by Chintan Shah, Ajay Patel, and Shekhar Somani.
Ajaykumar Mansukhlal Patel and Shekhar Rasiklal Somani are the whole time directors on the Board. Manher Chimanlal Desai, Subhash Ambubhai Patel, and Avani Rajesh Umatt are the independent directors.
Chintan Nitinkumar Shah is the managing director on the Board and has over 24 years of experience. Mahesh Tanna is the chief financial officer of the company.
During fiscal FY19-FY21, Tatva Chintan recorded growth in revenue at a CAGR of 20.7 percent and profit at a CAGR of 59.5 percent. EBITDA grew at a CAGR of 44.52 percent during the period.
First Published: IST