Tatva Chintan to make stock market debut today; IPO was subscribed 180 times
Tatva Chintan Pharma is expected to make its stock market debut on Thursday. According to Livemint, the chemical manufacturing company's public issue is likely to give 100 per cent listing gains to investors. This mean that their money will be doubled in a fortnight, according to Livemint.
Stock market experts are expecting strong listing for Tavta Chintan shares. The grey market premium ahead of the listing is ₹1,130, according to Livemint.
The issue price was fixed at ₹1,073- ₹1,083 apiece.
Tatva Chintan's ₹500 crore initial public offer (IPO) 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 data available with the National Stock Exchange (NSE).
The portion meant for qualified institutional buyers was subscribed 185.23 times, those reserved for non-institutional investors a whopping 512.22 times and retail individual investors quota received 35.35 times subscription, the NSE data showed.
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.