Tatva Chintan Pharma Chem IPO Review: Should you SUBSCRIBE? Listing gains? Long term? Market Guru Anil Singhvi explains

Tatva Chintan Pharma Chem Ltd IPO opened on Friday amid massive response from retail traders and other investors as the IPO was fully subscribed within hours of opening today, on July 16. The specialty chemical firm's Initial Public Offer (IPO) will close on July 20.  
 

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Talking about this Initial Public Offering, Zee Business Managing Editor Anil Singhvi on Friday said that investors should consider putting their money in this IPO. " Tatva Chintan Pharma Chem Ltd is from chemical space and there is huge action in this sector these days. Everyone is liking this space. Most of the things with the company is good, hence I will recommend one should consider subscribing to this issue. One could apply in this IPO for both good listing gain and with the long-term objective." 

आज से खुलेगा तत्व चिंतन फार्मा का IPO

कंपनी में क्या अच्छा, क्या निगेटिव?

IPO में पैसा लगाएं या नहीं?

जानने के लिए देखिए अनिल सिंघवी का ये वीडियो#EditorsTake #TatvaChintanPharma #TatvaChintanIPO @AnilSinghvi_ pic.twitter.com/NmeUbrz42C

— Zee Business (@ZeeBusiness) July 16, 2021

The company has a good business model and has promoters with good track record, said the Market Guru. "It's an old company with experienced promoters. Also, the company promises good growth outlook with recent capex. This Rs 500 crore issue will further strengthen Tatva Chintan Pharma Chem Ltd's capex. The best thing despite Capex is that the company is cash-rich and has less debt, which also infuses confidence in the company. Though the company is small in ter of around 2500 crore market cap, It is available at attractive valuation in comparison to other companies in this segment. The company has ensured that investors make money with this IPO as it has kept the valuation reasonable.  The company has good growth track in the last three years and also holds promise in the future as far as its growth is concerned," said Singhvi.  

On the other side, there are hardly any negative. "It only has general problem that any small business faces of limited suppliers and customers and has its plants mostly concentrated in one place-Gujarat. However, these are minor issues. I have a very crystal clear opinion on this IPO that one should put money for both listing gains and long-term," added Singhvi.