Tatva Chintan Pharma Chem IPO to open on July 16; price band set at Rs 1,073-1,083

IPO (Representative image)

Gujarat-based Tatva Chintan Pharma Chem has received approval from the market regulator Sebi to launch its Rs 500-crore crore initial public offering (IPO), which will open July 16-20.

The price band for the offer has been fixed at Rs 1,073-1,083 per equity share, as per the IPO advertisement published in a daily newspapers today.

The company plans to raise Rs 500 crore through IPO which comprises a fresh issue of Rs 225 crore and an offer for sale of Rs 275 crore by existing selling shareholders.

The offer for sale size has been increased to Rs 275 crore in the RHP, from Rs 225 crore earlier in DRHP.

Investors can bid for a minimum of 13 equity shares and in multiples of 13 equity shares thereafter. Up to 50 percent of the total offer is reserved for qualified institutional buyers, 35 percent for retail investors, and the rest 15 percent for non-institutional investors.

The company will 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.

Tatva Chintan is the largest and only commercial manufacturer of structure directing agents (SDAs) for zeolites in India, and also enjoys the second-largest position globally. Considering the wide application of its products, it serves customers across various industries, including the automotive, petroleum, pharmaceutical, agrochemicals, paints and coatings, dyes and pigments, personal care and flavour and fragrances industries.

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Apart from customers in India, the company also exports products to over 25 countries, including the USA, China, Germany, Japan, South Africa, and the UK. During FY21, exports of products amounted to Rs 211.99 crore, which accounted for 70.58 percent of revenue from operations.

Its customers include Merck, Bayer AG, Asian Paints, Ipox Chemicals KFT, Laurus Labs, Tosoh Asia Pte Ltd, SRF, Navin Fluorine International, Oriental Aromatics, Atul, Otsuk Chemical, Meghmani Organics, Divis Laboratorie, Hawks Chemical Company, Firmenich Aromatics, Jiangsu Guotai Super Power New Materials and Jade Chem Co.

Tatva Chintan is promoted by Chintan Shah, Ajay Patel and Shekhar Somani.

This is the fourth specialty company to launch its IPO in 2021, after Clean Science & Technology, Laxmi Organic Industries, and Anupam Rasayan India.

ICICI Securities, and JM Financial are the book running lead managers to the issue.