India: Tatva Chintan IPO subscribed 182.04 times on the final day of bidding

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The 500-crore initial public offering (IPO) of speciality chemicals manufacturer Tatva Chintan Pharma Chem was subscribed 182.04 times on the final day of bidding.

The offer received bids for 593.45 million equity shares against 3.26 million on offer, as per subscription data available with the exchanges.

The portion reserved for retail investors was subscribed 35.68 times, non-institutional investors’ portion was subscribed 516.99 times, while that set aside for qualified institutional buyers was subscribed 186.96 times.

Brokerage firm KR Choksey, in an IPO note, said, “Tatva Chintan has recorded strong growth in terms of revenues and profitability in recent years. Revenues have grown at a cumulative annual growth rate (CAGR) of 21.7% over FY2019-21.”

“At the upper end of the price band of 1083 and earnings per share (EPS) of 26.02 for FY21, the price multiple works out to be 41.6 times, which is at a significant discount compared to the industry average of 56 times. On account of strong growth potential, dominant manufacturer status, potential play on ‘green chemistry’ and discounted valuation compared to its peers,” it added.

Last week, Tatva Chintan Pharma Chem raised 150 crore from 22 anchor investors.

The speciality chemicals company plans to raise Rs500 crore through its public issue which comprises a fresh issue of 225 crore worth of equity shares and an offer for sale of 275 crore worth of shares by existing shareholders. The price band for the offer has been fixed at Rs1,073-1,083 per equity share.

Proceeds from the issue will be used to fund the expansion of its Dahej manufacturing facility and upgradation at its R&D facility in Vadodara.

The company has a diverse portfolio of structure directing agents, phase transfer catalysts, electrolyte salts for super capacitor batteries and pharmaceutical and agrochemical intermediates and other speciality chemicals.

“Tatva Chintan Pharma Chem Ltd. (TCPCL) is one of the leading global producers of an entire range of PTCs in India and one of the key producers across the globe. It is the largest and only commercial manufacturer of SDAs for zeolites in India,” said brokerage house Hem Securities.

“On the valuation front, considering the upper price band, diluted EPS and FY 21 earnings, the company is valued at 45.9 times price equity which is at a discount when compared to its listed industry peers. Its stable financial performance and growth opportunities provide visibility for the long term,” the brokerage added.

This article was first published on livemint.com.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.