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Tatva Chintan Pharma Chem Limited IPO : All You Need to Know

Tatva Chintan Pharma Chem Limited has been one of the leaders in the manufacturing of SDAs in India. The company initiated its operations in 1996. It has exposure across various industries namely agrochemicals, automotive, pigments, petroleum, pharmaceutical, paints and coatings and personal care. Its major revenue comes through export business. The company exports its products to more than 23 countries. There is a 76% share of exports in the company’s revenue. However the company has only domestic manufacturing facilities at Ankleshwar and Dahej.

IPO DETAILS

The Tatva Chintan Pharma Chem Limited IPO is set to launch on 16th July, 2021. The subscription timeline extends till 20th July, 2021. The size for the IPO is 500 Crore Rs. Shares issued through Offer for sale are 275 Crore Rs. Shares worth Rs. 225 Crore are issued through Fresh issue. The minimum lot size is 195 shares and the price is set at 1073 Rs. – 1083 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is Link Intime India Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	16th July, 2021
IPO CLOSING DATE	20th July, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	1073 Rs. – 1083 Rs.
LOT SIZE	13 shares
MINIMUM ORDER QUANTITY	13 shares
ISSUE SIZE	500 Crore Rs.
OFFER FOR SALE	275 Crore Rs.
FRESH ISSUE	225 Crore Rs.
LISTING AT	NSE, BSE
LISTING DATE	29th July, 2021

IMPORTANT DATES

IPO OPENING DATE	16th July, 2021
IPO CLOSING DATE	20th July, 2021
IPO ALLOTMENT DATE	26th July, 2021
REFUNDS	27th July, 2021
DEMAT A/C CREDITED ON	28th July, 2021
IPO LISTING DATE	29th July, 2021

The Tatva Chintan Pharma Chem Limited IPO begins for subscription from 16th July, 2021. The IPO subscription would continue till 20th July, 2021. The allotment status for the shareholders who applied would come on 26th July, 2021. The refunds for the ones who did not get allotment would be initiated on 27 July, 2021. The DEMAT accounts of shareholders would be credited on 28th July, 2021. The listing of the company would be accompanied on 29th July, 2021.

PROMOTER AND LEAD MANAGERS

The promoters for Tatva Chintan Pharma Chem Ltd. are Chintan Nitinkumar Shah, Ajaykumar Patel and Snehkar Somani. The promoter holding pre IPO launch is 100% and it will get decreased to 79.17% post IPO launch.

The lead managers for the company are :

JM Financial Consultants Private Limited
ICICI Securities Limited

The minimum lot size for the company is decided at 13 shares. This holding accounts to Rs. 14079. The maximum lot size is decided at 182 shares. This amounts to Rs. 197106. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	13 shares	14079 Rs.
Maximum	182 shares	197106 Rs

OBJECTIVES FOR THE IPO

The money from the IPO can also be utilized to meet general corporate purposes.
The company is planning to expand its manufacturing plants at Dahej. Thus the money will be utilized to fulfill this purpose.
The company has its Research and Development facility at Vadodara. The expansion of it is also one added reason for use of IPO funds.

COMPANY FINANCIALS

Particulars (in Million Rs.)	2020-21	2019-20	2018-19
ASSETS	3148	2489	1875
REVENUE	3062	2646	2068
NET PROFIT	522	377	205

The company has been able to perform consistently well. It has produced outstanding profits from a limited asset base. The assets of the company have increased two times in the span of 3 years. The revenues have also increased in a consistent manner with assets. The profit margin for the company is really outstanding. The company is generating close to 18% profits from asset base and revenues. This is the reason why the company sounds good to invest in. Also the expansion plans of the company triggers the long term growth perspectives of the company.