As of 11.10 am, the issue received applications for 34,59,898 shares against on offer 32,61,882 shares, meaning a subscription of 1.06 times. Tatva Chintan Pharma Chem has already received bids worth Rs 149.99 crore from 22 anchor investors at the upper price band of Rs 1,083 per equity share.
Goldman Sach, HSBC, Axis MF, Aditya Birla MF, Nippon Life AMC,
, Aberdeen, HDFC MF and Mirae Asset are some of the institutional investors that have invested in the anchor round.
Most analysts have advised investors to subscribe to the Rs 500 crore initial public offering (IPO). The price band of the issue has been fixed at Rs 1,073-1,083 a share. Bids can be made for a minimum of 13 shares and in multiples thereafter.
The IPO comprises fresh equity shares worth Rs 225 crore and an offer for sale by the promoters and shareholders worth Rs 275 crore. The company will utilise the fresh issue of Rs 225 crore worth of shares to fund its capex plans like Dahej manufacturing plant and upgrade its Vadodara R&D facility.
The company’s growth prospects are bright owing to its leadership status in the various product categories of specialty chemicals and significant presence in export markets. Also, given that it operates in segments which could see rise in environmentally sustainable products, the growth potential is further higher. We recommend a ‘subscribe’ rating for long-term gains from the IPO,” said analysts at KR Choksey Investment Managers.
On the upper price band of Rs 1,083 and EPS of Rs 26.02 for FY21, the P/E multiple works out to be 41.6 times, which is at a significant discount compared to the industry average of around 56 times.
