Tatva Chitan Pharma shares made a stellar debut on stock exchanges on Thursday, almost doubling the IPO investors cash on listing. Tatva Chintan Pharma’s share price tag soared to trade at Rs 2,111 per share, up 95% from the IPO price tag of Rs 1,083 per share. The stock had a marketplace capitalization of Rs 4,680 crore on its stock marketplace debut. Tatva IPO had received bids for 58.83 crore shares against 32.61 lakh shares on provide and saw a whopping 180.36 instances subscription price, creating it the second-most subscribed public concern of the calendar year 2021.
Check live price tag: Tatva Chintan Pharma
After the initial couple of minutes of trade, Tatva Chintan Pharma added to gains and soared as higher as 115.58% from the IPO price tag to trade at Rs 2,318 per share.
Tatva Chintan Pharma is the biggest and the only manufacturer of SDAs (40% of income) for Zeolites in India when it is the 2nd biggest globally, mentioned analysts at Motilal Oswal. The Indian specialty chemical marketplace is anticipated to develop at 11.3% CAGR more than CY19-24E (F&S report). Further India’s chemical export is anticipated to develop at 13% CAGR (CY19-24E) against China’s 7% due to the China+1 approach. “Tatva Chintan Pharma is well placed to capture this opportunity with niche and diversified product portfolio across various industries,” Motilal Oswal mentioned. The brokerage firm had a ‘Subscribe’ rating on the concern.
Ahead of the listing, Tatva Chintan Pharma was commanding a P/E valuation of 45.9x (to its restated FY21 EPS of Rs. 23.6), which is at discount to the peer typical of 57.2x, according to Choice Broking. Subdued international financial atmosphere, unfavourable government policies, troubles in expanding item portfolio and client base, unfavourable forex movements, and unfavourable movements in crucial raw material rates are some of the issues that surround Tatva Chintan Pharma.