Tatva Chintan Pharma Chem has managed to raise Rs 150 crore from anchor investors ahead of its initial public providing (IPO). Marquee domestic and worldwide names such as Goldman Sachs, HSBC Global, Nomura, SBI, HDFC and ICICI Prudential are some of the investors who have picked up a stake in the organization by means of the anchor book portion. The Rs 500-crore IPO of Tatva Chintan Pharma will open for subscription today. Specialty chemical substances maker Tatva Chintan is searching to raise Rs 225 crore by means of a fresh concern of shares, even though the remaining Rs 275 crore will be an give for sale (OFS).
Tatva Chintan Pharma has sold 13.85 lakh equity shares to anchor investors. Goldman Sachs, HSBC, Axis Mutual fund, Malabar India Fund, Nippon Life India, Abu Dhabi Investment Authority and Nomura Funds have every single purchased more than 6% of the anchor book portion. Of the total anchor investment, 47% or 6.46 lakh equity shares have been sold to seven domestic mutual funds. These include things like ICICI Prudential, HDFC AMC, Axis Mutual Fund, Aditya Birla Sun Life, SBI, Nippon India and Mirae Asset Hybrid.
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Issue particulars
From today investors can bid for Tatva Chintan Pharma in the value band of Rs 1,073-1,083 per share in a bid lot of 13 shares. The minimum investment will be Rs 14,079. The concern will close next Tuesday on Jul 20, 2021. While 50% of the concern is reserved for Qualified Institutional Buyers (QIB), Non-institutional Investors (NII) can bid for 15% of the total concern size. Retail investors can bod for 35% of the total concern. The promoter stake in the organization will come down to 79.2% post concern even though public shareholding will raise to 20.8%.
The organization plans to the net proceeds from the fresh concern towards funding capital expenditure needs for expansion of Dahej Manufacturing Facility, funding the up-gradation of R&D facility in Vadodara, and common corporate purposes. The firm was trading at a grey market place premium of Rs 690 per share till Thursday, according to folks dealing in the unlisted space.
Should you subscribe?
Established in 1996, Tatva Chintan Pharma is one of the top corporations engaged in the manufacturing of green chemical substances. At the give for sale value of INR 1,083, the stock is valued at 31.3X FY24 earnings, stated analysts at Ventura Securities. They think the higher valuations are justified higher development possible, dominant producer status, exposure to green power, and sturdy balance sheet. “Upcoming expansion plan will increase the company’s aggregate capacity by 200 kilo liters (71.4%), which is a significant expansion and could impact profitability and return ratios in the next 2-3 years. We recommend a SUBSCRIBE for listing gains,” they added.
The organization has no precise peers listed on the bourses, stated Choice Broking. The brokerage firm added that at the greater value band of Rs 1,083, Tatva Chintan Pharma is demanding a P/E valuation of 45.9x (to its restated FY21 EPS of Rs. 23.6). Choice Broking has a ‘Subscribe’ rating for the concern, banking on the development possibilities for the organization.