Tatva Chintan shares make strong debut, list at 95% premium over issue price
Tatva Chintan Pharma made a stellar debut on the stock markets on Thursday. The stocks got listed with a massive premium of 95 per cent against the issue price of ₹1,083.
The stock made its debut at ₹2,111.80, zooming 94.99 per cent from the issue price on the Bombay Stock Exchange (BSE). It then hit the day's high of ₹2,486.30, rallying 129.57 per cent.
At the NSE, the stock listed at ₹2,111.85, registering a massive gain of 95 per cent.
Tatva Chintan's ₹500 crore initial public offer (IPO) had received strong investor response when it opened for subscription for five days - from July 16 to July 20. It was subscribed a whopping 180.36 times on the final day.
The IPO received bids for 58,83,08,396 shares against 32,61,882 shares on offer, as per National Stock Exchange (NSE).
The Vadodara-based firm is a specialty chemical manufacturing company. The company exports most of its products to over 25 countries, including the US, China, Germany, Japan, South Africa, and the UK.
Proceeds from the fresh issue would be used towards funding capital expenditure requirements for expansion of the company's Dahej manufacturing facility; upgradation of a research and development facility in Vadodara, and general corporate purposes.
For the fiscal ended March 31, 2021, the company posted a profit of ₹52.26 crore as compared to ₹37.78 crore in the preceding financial year. It reported a revenue of ₹300.35 crore against ₹263.23 crore.