Tatva Chintan IPO Review: The good news of IPO’s just keeps coming. Tatva Chintan Pharma Chem Ltd (TCPCL) has opted for an Rs. 500 cr. IPO will open from July 16th to July 20th.

TCPCL will be the fourth specialty company to launch its IPO this year. The others being Clean Science & Technology, Laxmi Organic Industries, and Anupam Rasayan India which have successfully completed their IPOs this year.

In this article, we look into important information on the Tatva Chintan Pharma Chem Ltd IPO and find out the possible prospects of the company.

Tatva Chintan IPO Review – About the Company

Tatva Chintan Logo

Founded in 1996, Tatva Chintan Pharma Chem Limited (TCPCL) is a specialty chemicals manufacturing company. The company is India’s largest and only commercial manufacturer of structure-directing agents (SDAs) for zeolites.

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Globally the company is the second-largest manufacturer. In addition to this, the Gujarat-based company is also engaged in the manufacture of phase transfer catalysts (PTCs), pharmaceutical and agrochemical intermediates, and other specialty chemicals.

Tatva Chintan's Total Assets over the years

The company currently has 2 manufacturing facilities each in Ankleshwar and Gahej Gujarat

These specialty chemicals have their applications in various industries like automotive, petroleum, pharmaceutical, agrochemicals, paints and coatings, dyes and pigments, personal care, and flavor and fragrances industries.

Some of its notable clients include Merck, Bayer AG, Asian Paints, Ipox Chemicals KFT, Laurus Labs, Tosoh Asia Pte Ltd, SRF, Navin Fluorine International, Oriental Aromatics, Atul, Otsuka Chemical, Meghmani Organics, Divis Laboratories, etc.

Tatva Chintan's profit over the years | Tatva Chintan IPO

Its products are exported to over 25 countries in the world including the USA, China, Germany, Japan, South Africa, and the UK. Exports made up 70.58% of the company’s revenue for FY 2020-21.

Grey Market Premium of Tatva Chintan

The shares of TCPCL were trading at around a 60% premium in the grey market before the IPO. The shares traded at a price of Rs. 1,320 giving them a premium of Rs. 630 over their issue price band of Rs 1703-1713 per share.


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Tatva Chintan IPO Review – Key Information

IPO Size₹500.00 Cr
Fresh Issue₹225.00 Cr
Offer For Sale(OFS)₹275.00 Cr
Opening DateJul 16, 2021
Closing DateJul 20, 2021
Face Value₹10 per equity share
Price Band₹1073 to ₹1083 per equity share
Lot Size13 Shares
Minimum Lot Size1
Maximum Lot Size14
Listing DateJul 29, 2021

The promoters of the company include Ajaykumar Mansukhlal Patel, Chintan Nitinkumar Shah, and Snehkar Rasiklal Somani. They have appointed ICICI Securities and JM Financial as the book running lead managers to the issue. Link Intime India Pvt. Ltd. has been appointed as the registrar to the issue.

Purpose of the Tatva Chintan IPO

Tatva Chintan Pharma Chem Ltd has decided to opt for an IPO for the following purpose

  • Fund capital expenditures requirements for expansion of their Dahej manufacturing facility.
  • To fund capital expenditures requirements for upgrading R&D facilities in Vadodara.
  • To meet general corporate purposes.

In Closing

The IPO opens on 16th July and closes on 20th July 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Tatva Chintan Pharma Chem Ltd.

Investors can also have a look at how previous specialty chemical companies have performed this year. Clean Science & Technology, Laxmi Organic Industries, and Anupam Rasayan India all were oversubscribed 96, 107, and 44 times.

That’s all for this post. Do let us know what you think of the Tatva Chintan Pharma Chem Ltd IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!

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