Tatva Chintan Pharma Chem Ltd hit the market floor with a stellar initial public offering (IPO) of Rs 500 crore on July 16. The IPO stands as a strong pillar as its popularity with investors was evident due to the subscriptions of around 180.36 times by the time it closed. This speciality chemical manufacturer’s stock bidding had pushed the Grey Market Premium (GMP) up by nearly 100 per cent of what the initial price band was allocated. The price band that the IPO opened with was Rs 1073 to Rs 1083 per equity share, while the GMP stood at Rs 1000, which indicates that the shares were trading at shares were trading on the grey market at around Rs 2073 to Rs 2083 per share against the given price band. The company is filing its Basis of Allotment on July 26 as per reports.
When it comes to the reservations that the Tatva Chintan IPO witnessed, the Qualified Institutional Buyers (QIB) were allocated at 50 per cent, Non-Institutional Investors (NII) were at a 15 per cent reservation and the Retail investors were reserved for an allocation of 35 per cent. The issue was subscribed 35.35 times in the retail category, 185.23 times in the QIB category, and 512.22 times in the NII category, as per reports.
The Basis of Allotment
The Basis of Allotment is fixed for Monday, July 26, 2021, and for the eager investors’ knowledge. As things wind up and the day of listing nears, it is important to note these dates. For the successful bidders, the allotment date is here and those who have been able to snag their shares will see said share credited to their Demat accounts on July 28. The Unsuccessful bidders, on the other hand, can expect to see their refunds a day prior to that, on July 27. The listing day for Tatva Chintan is tentatively listed as July 29, however, that is yet to be confirmed.
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Checking Your Allotment Status
How to Check on the Bombay Stock Exchange (BSE)
Step 1: Go to the official BSE website. Via the URL: (https://www.bseindia.com/investors/appli_check.aspx).
Step 2: It will take you to a page called ‘Status of Issue Application’. There you need to select the ‘Equity’ option, which is found under the ‘Issue Type’.
Step 3: In the section allocated for the issue name in the dropbox, put in your desired IPO name, in this case, ‘Tatva Chintan Pharma Chem Limited’.
Step 4: Type in your application number and the Permanent Account Number (PAN).
Step 5: Click the ‘I am not a robot’ section to verify yourself and click ‘Search’. This will show you the status of the application on the BSE.
Another alternative is checking through the official registrar’s website which is Link Intime India Private Limited. It is a SEBI registered entity and is responsible for carrying out the allotment process as per the company’s prospectus. It also handles any refunds and investor-related roadblocks that need to be addressed.
Checking on the Registrar’s Website
Step 1: Go to the Link Intime India website using the URL: (https://linkintime.co.in/MIPO/Ipoallotment.html)
Step 2: Select the ‘Tatva Chintan Pharma Chem Limited – IPO’ option from the drop-down list under ‘Company’, which will only appear if the allotment is finalised.
Step 3: You can enter one of four different credentials to authenticate yourself. These credentials are the PAN number, your application number, DP Client ID or IFSC code/Account Number.
Step 4: Select the type of application which is either ASBA or non-ASBA
Step 5: Enter the details of the type of application that you chose.
Step 6: Fill in the captcha and click on the ‘Submit’ button to view your allotment status.
Analyst Views on the Company
Speaking on Tatva Chintan Pharma Chem Ltd.’s performance, analyst Hemang Kapasi, Head of Equities, Sanctum Wealth Management said, “Company is well placed to capture the growth is specialty chemicals space, as it offers solutions through green chemistry applications through its leadership position in the given segments and are capable to offer new products through enhanced thrust on R&D capability. The financial numbers offer credence with Revenue / EBITDA/ PAT CAGR of ~21%/39%/60% over FY19-21 and return ratios in excess of 20%.”
“Company’s aggregate manufacturing capacity has increased at a CAGR of 23.80% from an aggregate reactor capacity of 82 KL and zero Assembly Lines as of March 31, 2010 to 280 KL Reactor Capacity and 13 Assembly Lines as of December 31, 2020. Keeping in mind the opportunity company would look to add capacity in a phased manner to ensure that they utilise the capacity at optimal levels. For instance, out of the 51,822.64 square meters of land sub-leased to the Company pursuant to agreements with Dahej SEZ Limited for Dahej Manufacturing Facility, they intend to expand manufacturing facility at Dahej and utilise 31,724.19 square meters of the available land for the same,” he added.
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