Specialty chemical company Tatva Chintan Pharma Chem will launch its initial public offering (IPO) for subscription from July 16—20. This is the fourth specialty chemical company go public in 2021 after Anupam Rasayan India, Clean Science & Technology and Laxmi Organic Industries.
The company has fixed the offer at a price band of Rs 1,073-1,083 per equity share. The offer size is Rs 500 crore and comprises a fresh issue of shares worth Rs 225 crore and an offer for sale of shares worth Rs 275 crore by existing selling shareholders.
The company proposes to utilise fresh issue proceeds towards funding capital expenditure requirements for expansion of Dahej manufacturing facility; capital expenditure requirements for upgradation at the R&D facility in Vadodara; and general corporate purposes.
The IPO market lot size is 13 shares and a retail individual investor can apply for up to 14 lots.
The company has reserved up to 50 percent of the total offer for qualified institutional buyers (QIBs), 35 percent for retail investors, and the rest 15 percent for non-institutional investors.
ICICI Securities and JM Financial are the book running lead managers to the issue.
Tatva Chintan Pharma Chem among the largest manufacturer of structure-directing agents (SDAs) for zeolites in India. It also manufactures phase transfer catalyst (PTCs), pharmaceutical and agrochemical intermediates, and other specialty chemicals.
The company has two manufacturing facilities at Ankleshwar and Dahej in Gujarat.
It serves customers across industries i.e. automotive, petroleum, agrochemicals, dyes and pigments, paints and coatings, pharmaceutical, personal care, and others.
Apart from India, the company also exports its products to more than 25 countries such as the USA, Germany, South Africa, China, and the UK.
In FY21, exports amounted to Rs 211.99 crore, which accounted for 70.58 percent of revenue from operations.
Its customers include Merck, Bayer AG, Asian Paints, Laurus Labs, SRF, Divis Laboratories, Navin Fluorine International, Ipox Chemicals KFT, Oriental Aromatics, Tosoh Asia Pte Ltd, Atul, Otsuk Chemical, Meghmani Organics, among others.
(Edited by : Ajay Vaishnav)
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