Tatva Chintan shares debut at Rs 2,111.80, rising as much as 130%

At 12.48 hours IST, it was quoting at Rs 2,276, up 110.16 percent on the BSE, with volume of 6.86 lakh equity shares.

10:45 AM - Update

Tatva Chintan Pharma Chem shares extended rally after stellar debut, rising as much as 129.6 percent to hit a day's high of Rs 2,486.30 on the BSE.

At 10:45 hours IST, it was trading at Rs 2,287.95, up by Rs 176.15 or 8.34 percent over opening price and up by Rs 1,204.95 or 111.26 percent over issue price of Rs 1,083, with volume of 3.97 lakh equity shares.

10:00 AM - Opening Trade

Tatva Chintan Pharma Chem shares had a blockbuster debut at 95 percent premium on the BSE, meeting analysts' expectations and grey market premium, on July 29. The stock opened at Rs 2111.80, compared to the issue price of Rs 1,083.

The Rs 500-crore public issue of the specialty chemical company got a healthy response from investors, as it was subscribed 180.35 times during July 16-20. The portion set aside for qualified institutional buyers was subscribed 185.23 times, non-institutional investors 512.22 times, and retail investors 35.35 times.

Experts expect the company's healthy financials with strong return ratios, diversified product portfolio, a global presence with a wide customer base and the overwhelming response to IPO to drive up the listing price premium beyond 100 percent.

The grey market had also indicated a grand listing of Tatva Chintan. Shares were available at a premium of Rs 1,140-1,150 or 105-106 percent over the issue price.

Tatva Chintan is among key players in the specialty chemicals segment, with its range of products finding applications among the high growth segments. Engaged in the manufacturing of a variety of disinfectants, catalysts, agro and pharmaceuticals intermediates and other specialty intermediates, Tatva Chintan has a good product mix across sectors of agrochemicals, pharmaceuticals, personal care, etc.

It is the largest and only commercial manufacturer of structure-directing agents (SDAs) for zeolites in India. It also enjoys the second-largest position globally. In addition, the company is one of the leading global producers of an entire range of phase transfer catalysts (PTCs) in India and one of the key producers across the globe.

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The company will utilise the net proceeds from its fresh issue for expansion of its manufacturing facility in Dahej and for the upgrade of R&D facility in Vadodara. The offer comprised a fresh issue of Rs 225 crore and an offer for sale of Rs 275 crore by shareholders.

Tatva Chintan recorded a growth in profit at a CAGR of 59.50 percent during FY19-FY21. Return ratios have also been strong, with return on equity at 31.5 percent and return on capital employed of 33 percent in FY21. In FY21, it reported a 14 percent year-on-year growth in revenue and 20 percent growth in operating profit with margin expansion of 100 bps YoY at 22 percent.