The shares of Tatva Chintan Pharma Chem traded at more than 100 percent premium in the grey market on Tuesday, ahead of its listing later this week.
As per the IPO Watch and IPO Central data, Tatva Chintan shares traded at a premium of Rs 1,000-1,100 per share in the grey market. This resulted in a price of Rs 2,083-2,183 per share, a premium of 92.3 percent - 101.6 percent over the estimated final issue price of Rs 1,083 per share.
A huge grey market premium would be on the back of the company's strong fundamentals, healthy financials and return ratios, leading position in manufacturing of structure-directing agents and high-quality product portfolio, analysts said.
The public issue of the specialty chemical company Tatva Chintan received a robust subscription. The IPO was subscribed 180.36 times during July 16-20. 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.
The IPO comprised of a fresh issue of shares worth Rs 225 crore and an offer for the sale of shares worth Rs 275 crore by the promoter and promoter group.