Tatva Chintan Pharma Chem Ltd IPO

Closed

IPO Synopsis

Offer Details:
The offer consists of Fresh Issue of Equity Shares aggregating upto ₹225 Crore and Offer for sale of Equity Shares aggregating upto ₹ 275Cr.
 

Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  1. Funding capital expenditure requirements for expansion of our Dahej Manufacturing Facility;
  2. Funding capital expenditure requirements for upgradation at our R&D facility in Vadodara; and
  3. General corporate purposes.

 

Tatva Chintan Pharma Chem Shareholding 

% Shareholding

Pre-IPO

Post-IPO

Promoter & Promoter  Group

100.00

79.17

Public

-

20.83

Source:RHP

About Tatva Chintan Pharma Chem Ltd

Tatva Chintan Pharma Chem Limited is a specialty chemicals manufacturing company engaged in the manufacture of a diverse portfolio of structure directing agents (“SDAs”), phase transfer catalysts (“PTCs”), electrolyte salts for super capacitor batteries and pharmaceutical and agrochemical intermediates and other specialty chemicals (“PASC”). 

The company is the largest and only commercial manufacturer of SDAs for zeolites in India. It also enjoys the second largest position globally. (Source: F&S Report) In addition, Tatva Chintan Pharma Chem is one of the leading global producers of an entire range of PTCs in India and one of the key producers across the globe. (Source: F&S Report). Considering the wide application of our products, the company serve customers across various industries, including the automotive, petroleum, pharmaceutical, agro chemicals, paints and coatings, dyes and pigments, personal care and flavour and fragrances industries. Apart from the company’s customers in India, it also export our products to over 25 countries, including the USA, China, Germany, Japan, South Africa, and the UK. During the Fiscals ended March 31, 2019, 2020, and 2021, exports of products amounted to ₹ 1,435.19 million, ₹ 2,020.20 million and ₹ 2,119.92 million, which accounted for 69.57%, 76.74%, and 70.58%, of our revenue from operations, respectively.

Key Points

Competitive Strengths:

Leading manufacturer of structure directing agents and phase transfer catalysts, with consistent quality

With very few players in the Indian and global market, Tatva Chintan is the largest and only commercial manufacturer of SDAs for zeolites in India. It also enjoys the 2 nd largest position globally. Their strategically located manufacturing facilities and robust and technically sound R&D capabilities have enabled them to maintain the quality of their products. Their large manufacturing capacity, consistent growth, experienced management, global footprint, and high-quality products make them a reliable supplier of SDAs and PTCs.

Company’s key chemistries and products are gaining importance in the global market. The global production of tetramethyl ammonium hydroxide was valued at around USD 1.2 billion in 2019. Having multiple applications, to inhibit nanoparticle aggregation, the tetramethyl ammonium hydroxide market is expected to grow at over 7% CAGR through 2020-25F with Korea and China dominating the market. However, with just 2-3 players in the domestic market, Tatva Chintan stands an opportunity to expand and explore the global market. The SDA market remains highly consolidated with a handful of players operating at the global level. Opportunities in the automotive industry continue to grow, as compliance with the regulations regarding the emission control in commercial vehicles becomes a mandate worldwide. The company has managed to build a market for itself in India and across the globe with its in-depth knowledge of the chemistry. On a domestic level, the company is the only manufacturer in India. They have developed their technology to ensure production of high purity SDAs with PPM level of impurities.

Global presence with a wide customer base across various industries having high entry barriers:

Tatva Chintan supply their products to customers in India and export their products to over 25 countries, including the USA, China, Germany, Japan, South Africa and the UK. During the Fiscals ended March 31, 2019, 2020 and 2021, exports of products accounted for 69.57%, 76.74% and 70.58% of their revenue from operations, respectively.

The varied applications for their product portfolio have helped them build a wide customer base across many sectors. Of their entire customer base as of March 31, 2021, 46.86% of these customers have been their customers for less than 5 years and 53.14% of these customers have been their customers for over 5 years.

Diversified specialised product portfolio requiring strong technical know-how:

Tatva Chintan has, over the years, diversified, expanded, and evolved their operations into manufacturing of pharmaceutical and agrochemical intermediates and other specialty chemicals, which have diverse applications across various industries.

As of March 31, 2021, they offered 47 products under their SDA product portfolio, 48 products under the PTC product portfolio, 6 products under the electrolyte salts for super capacitor batteries portfolio and 53 products under their PASC portfolio.

Risk:

  • The continuing impact of the outbreak of the COVID-19 could have a significant effect on the company’s operations, and could negatively impact the business, revenues, financial condition and results of operations.
  • Increase in the cost of raw materials could have a material adverse effect on company’s results of operations and financial conditions.
  • The company derive a significant portion of the revenue from a few customers and the loss of one or more such Customers will affect the financial performance.
     

Key IPO Details

Particulars

Key IPO Dates

Particulars

Nature of issue

Book Building

Issue Opens on

16-Jul-2021

Face value of share

Rs.10 per share

Issue Closes on

20-Jul-2021

IPO Price Band

Rs.1,073 - Rs.1,083

Basis of Allotment date

26-Jul-2021

Market Lot

13 shares

Refund Initiation date

27-Jul-2021

Retail Investment limit

14 Lots (182 shares)

Credit to Demat

28-Jul-2021

Retail limit - Value

Rs.197.106

IPO Listing date

29-Jul-2021

Fresh Issue Size

Rs.225 crore

Pre issue promoter stake

100%

Offer for Sale Size

Rs.275 crore

Post issue promoters

79.17%

Total IPO Size

Rs.500 crore

Indicative valuation

Rs.2,400 crore

Listing on

BSE, NSE

HNI Quota

15%

QIB Quota

50%

Retail Quota

35%

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Frequently Asked Questions

An Initial Public Offering OR IPO is the process of issuing stock for sale for the first time by a private corporation to the public. A company can issue its stock for sale for the first time to raise money by issuing either debt or equity. In case, the company chooses the equity route, the first such offering of equity shares to the public via listing of the shares in the stock markets is called an IPO.

 

This is one of the processes that has to do with the pricing of the IPO. An IPO can be made either through book building method, the fixed price method or a combination of both.

While in book building the price at which securities will be offered/allotted is not known in advance to the investor (investor is aware of an indicative price range only), in the fixed price process price at which the securities are offered/allotted is known in advance to the investor.

When it comes to an IPO, there are 4 types of investors who can bid, as per SEBI guidelines. They are –

  1. Qualified institutional investors (QIIs)
  2. Anchor investors
  3. Retail investors and
  4. High net-worth individuals (HNIs)/Non-institutional investors (NII).

 

IPO subscription period is the period of time during which investors can promise to purchase shares of a security to be issued as initial public offering (IPO).

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Contact Details of Tatva Chintan Pharma Chem Ltd IPO

Contact Information

Address

Tatva Chintan Pharma Chem Ltd
Plot No. 502 / 17, GIDC Estate, Ankleshwar,
Bharuch, Gujarat - 393002, India


Phone: +91 75730 46951
Email: cs@tatvachintan.com
Website: http://www.tatvachintan.com/

Tatva Chintan Pharma Chem Ltd IPO Lead Manager

Link Intime India Private Ltd
C 101, 247 Park, L.B.S.Marg,
Vikhroli (West), Mumbai - 400083

Phone: +91-22-4918 6270
Email: tatva.ipo@linkintime.co.in
Website: https://www.linkintime.co.in

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