As of 1.10 pm, the issue received applications for 18,34,46,952 shares against on offer 32,61,882 shares, meaning a subscription of 56.24 times. Institutional investors mostly bid for IPOs on the third day.
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.
In the grey market as well, demand for its shares is high. The counter is commanding a premium of around Rs 760 over the band price, which means a grey market premium of 70 per cent.
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 company and its shareholders plan to raise Rs 500 crore from the market. 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 is bringing the issue at PE multiple of 42.06 on post-issue FY21 basis. It is one of the leading global producers of an entire range of PTCs in India and one of the key producers across the globe with a wide customer base and has strong future prospects. We recommend ‘subscribe’ this issue for listing gain and long term purpose,” said Astha Jain of Hem Securities.
On the upper price band of Rs 1,083, the P/E multiple is at a significant discount compared to the industry average of around 56 times.
