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Tatva Chintan IPO pips Zomato share sale, gets fully subscribed within hours of opening

Tatva Chintan IPO pips Zomato share sale, gets fully subscribed within hours of opening

During the first few hours of the IPO, the share sale was fully subscribed. The IPO received bids for 52,48,425 shares against 32,61,882 shares on offer, amounting to 1.61 times subscription

The firm aims to garner Rs 500 crore through the IPO which comprises a fresh issue of up to Rs 225 crore and an offer for sale of up to Rs 275 crore. The firm aims to garner Rs 500 crore through the IPO which comprises a fresh issue of up to Rs 225 crore and an offer for sale of up to Rs 275 crore.

The initial public offer (IPO) of specialty chemical manufacturing company Tatva Chintan Pharma Chem is in progress.

During the first few hours of the IPO, the share sale was fully subscribed. The IPO received bids for 52,48,425 shares against 32,61,882 shares on offer, amounting to 1.61 times subscription. The chemical firm's share sale has piped the IPO of popular food delivery firm Zomato in terms of subscription which took one day to get fully subscribed.

The portion allocated for non-institutional investors received 13 per cent subscription, while those for retail individual investors (RIIs) 3.16 times, according to an update on NSE till 1205 hours.

The IPO which opened today will close on July 20.

The firm aims to garner Rs 500 crore through the IPO which comprises a fresh issue of up to Rs 225 crore and an offer for sale of up to Rs 275 crore.

Price band for the IPO has been fixed at Rs 1,073-1,083 per share.

On Thursday, Tatva Chintan Pharma garnered Rs 150 crore from anchor investors.

Proceeds from the issue will be used toward funding capital expenditure requirements for expansion of the company's Dahej manufacturing facility; up grade of a research and development facility in Vadodara, and general corporate purposes.

ICICI Securities and JM Financial are the book running lead managers to the offer.

Shares of the company will be listed on NSE and BSE.

For the fiscal ended March 31, 2021, the company reported a profit of Rs 52.26 crore as compared to Rs 37.78 crore in the preceding financial year. Revenue rose to Rs 300.35 crore against Rs 263.23 crore.