Tatva Chintan Pharma Chem IPO (Tatva Pharma)
Incorporated in the year 1996, Tatva Pharma is launching its IPO on 16th July 2021 with an issue size of Rs 450 crore as per DRHP filed with SEBI. Offer details of the Issue are as follow:
Offer Details of Tatva Chintan Pharma Chem IPO
|Offer Size||Rs 500 crore|
|Fresh Issue||Rs 225 crore|
|Offer for sale||Rs 275 crore|
|Price Band||Rs 1073-Rs 1083 per share|
|Offer Period||July 16- July 20, 2021|
|Offer Structure||QIBs: upto 50% of the offer
NIIs: upto 15% of the offer
RIIs : upto 35% of the offer
|Market Lot||Minimum 1 lot; 13 shares (Rs 14079)
Maximum 14 lots; 182 shares (Rs 197106)
|Listing on||BSE, NSE|
|BRLM’s||ICICI Securities, JM Financial|
Objects of Tatva Chintan Pharma Chem IPO
- Funding capital expenditure requirements for expansion of Dahej Manufacturing Facility (Rs 147.10 crore)
- Funding capital expenditure requirements to upgrade R&D facility in Vadodara (23.97 crore)
- General corporate purposes
Business Review of Tatva Chintan Pharma
The Issuer 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 supercapacitor batteries, and pharmaceutical and agrochemical intermediates and other specialty chemicals (PASC). The Issuer currently operates through two manufacturing facilities situated at Ankleshwar and Dahej in Gujarat.
The products of the company have a demand across various industries such as automotive, petroleum, pharmaceutical, agrochemicals, paints and coatings, dyes and pigments, personal care, and flavor and fragrances industries. The products are also exported to over 25 countries, including the USA, China, Germany, Japan, South Africa, and the UK among others. Exports accounted for 64.99% (FY18), 69.57% (FY19), 76.74%(FY20) and 70.72% (9MFY21), of revenue from operations, respectively.
The product portfolio of Tatva Pharma can be grouped into four broad categories:
Structure Directing Agents: SDAs are quarternary salts which are chemicals that help in the formation of particular channels and pores during the synthesis of zeolites. It contributed 33% to revenue from operations during 9MFY21
Phase Transfer Catalysts: Phase transfer catalysts are widely used in green chemistry applications. Therefore, the increasingly global focus of the chemical industry on reducing residual waste and reducing the use of organic solvents is boosting the market for catalysts for phase transfer. It contributed 30% to revenue from operations during 9MFY21.
Electrolyte salts for supercapacitor batteries: Electrolyte salts are used in the manufacture of supercapacitor batteries, which are used in automobile batteries and other batteries. It contributed 1.2% to revenue from operations during 9MFY21.
Pharmaceutical and agrochemical intermediates and other specialty chemicals: The products manufactured under this category are used in the manufacture of various pharmaceutical and agrochemical products as intermediates, disinfectants and catalysts, and solvents. This segment contributed 34% towards revenue from operations during 9MFY21.
Some of the renowned customers include Merck, Bayer AG, Asian Paints Ltd., Ipox Chemicals KFT, Laurus Labs Ltd., Tosoh Asia Pte. Ltd., SRF Limited, Navin Fluorine International Limited, Oriental Aromatics Ltd., Atul Limited, Otsuka Chemical (i) Pvt Ltd., Meghmani Organics Limited, Divi’s Laboratories Limited, Hawks Chemical Company Limited, Firmenich Aromatics Prod. (I) Pvt. Ltd., Jiangsu Guotai Super Power New Materials Co., Ltd., and Jade Chem Co. Ltd.