Tatva Chintan Pharma Chem IPO SUBSCRIPTION Day 2: Ahead of second day, know what Anil Singhvi has to say about this issue

With the second day today for subscription, the initial public offer of Tatva Chintan Pharma Chem was fully subscribed within the hours of its launch, eventually closing with 4.51 times subscription on the first day of the issue on Friday.

The three-day IPO of a specialty chemical manufacturing company was opened on July 16 and would close on July 20, 2021. The issue size is Rs 500 crore and the price range is Rs 1,073-1,083 per share.

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The IPO received bids for 1.47 crore shares as compared to 32.62 lakh shares on offer. The qualified institutional buyers (QIBs) portion was subscribed 50 per cent, while the non-institutional investors’ category received 1.14 times and for retail investors 8.24 times, as per the exchanges data.

The initial public offer aggregating up to Rs 500 crore comprises a fresh issue of up to Rs 225 crore and an offer for sale of up to Rs 275 crore. Ahead of its IPO launch, Tatva Chintan Pharma Chem garnered Rs 150 crore from anchor investors on Thursday.

The net proceeds from the fresh issue to be used for funding capital expenditure requirements for expansion of the company’s Dahej the manufacturing facility, up-gradation of research and development facility in Vadodara, and general corporate purposes.

ICICI Securities and JM Financial are the books running lead managers to the offer. Shares of the company will be listed on NSE and BSE.

The Vadodara-based specialty chemical manufacturing company — Tatva Chintan Pharma Chem exports most of its products to over 25 countries, including the US, China, Germany, Japan, South Africa, and the UK.

According to the market guru Anil Singhvi, before its offer launch, had recommended to invest in Tatva Chintan Pharma Chem IPO for both listing gains and long-term earnings. He mentioned the company is from chemical space and there is a huge action in this sector these days. 

Most of the things with the company is good, hence I will recommend one should consider subscribing to this issue, Singhvi suggested.