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Anti-China sentiment can be a catalyst in Tatva Chintan IPO

05 August 20226 mins read by Angel One
Anti-China sentiment can be a catalyst in Tatva Chintan IPO
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Tatva Chintan Pharma Chem Limited, a Gujarat-based Pharmaceuticals and Chemicals Company, is gearing up to launch its IPO. The Tatva Chintan Pharma IPO listing date has been finalised, and it will open on 16 July 2021 and close on 20 July 2021. The expected price band of this IPO is Rs. 1073 – Rs. 1083 per share.

The IPO offer size is Rs. 500 crores, with the company issuing Rs. 225 crores worth fresh equity shares. Along with that, it includes an offer for sale by shareholders and promoters of Rs. 275 crores.

Besides its upcoming IPO the company has tonnes of upsides for future. One of such being, the promising growth in exports domain courtesy of bubbling tense in international trade relations.

But before we dig deeper, let us find out more about this company, its possibilities, and the IPO.

Tatva Chintan Pharma: A brief introduction

Tatva Chintan Pharma Chem Limited is one of the leading specialty chemical manufacturing companies in this country. Its diverse product portfolio contains PTC, SDA, agrochemical intermediates, pharmaceutical intermediates, and others.

Until March 2021, the product portfolio of Tatva Chintan Pharma Chem included –

  • 51 products under the PASC segment
  • 48 products under the PTC segment
  • 47 products under SDA segment
  • 6 products under electrolyte salts for the supercapacitor batteries segment

Did you know

Tatva Chintan Pharma Chem is among the largest manufacturers of SDAs for zeolites in this country.

Tatva Chintan Pharma has a client base spread across industries that includes petroleum, agriculture, automotive, personal care, pharmaceutical products, coatings, paints, pigments, dyes, and many others.

Besides its domestic operations, Tatva Chintan also exports its products in 25+ countries across the globe. According to reports, in FY2020, exports have contributed more than 70% to its total revenue.

Indeed, exports have been a crucial revenue churner for Tatva Chintan. In that regard, the current anti-China sentiment could emerge as a boon for this company.

How anti-China sentiment could help Tatva Chintan?

Following different environmental issues with Chinese products, companies across the globe have been looking for alternatives. This is where Tatva Chintan has stepped up to grab these opportunities by the scruff of the neck. Accordingly, the company is refocusing its energy on sustainable and green technology.

After the Tatva Chintan IPO announcement, a senior management member of the company has shed light on this topic. He explained how the business has improved due to this green-sentiment. He mentioned that agrochemicals, and pharmaceuticals intermediates, and other speciality chemicals (PASC) had seen a huge surge due to this. For example, the PASC segment has increased its contribution over the years, with 30.37% in FY2021 and 29.06% in FY2020.

He pointed out the ‘China Plus one policy’ is one of the reasons why they have this whole PASC division. He sighted that their international clients, who previously banked on Chinese products, are now actively searching for alternatives.

They used this opportunity to develop pharmaceuticals and agrochemical intermediates and built a whole specialist chemical division. In the present day, this segment contributes 25% to 30% of the total revenue, which did not exist prior to 2006.

Moving on

Tatva Chintan Pharma IPO at a glance

Let’s start with the objective of this upcoming IPO, which includes meeting capital expenditure for the expansion of Dahej manufacturing facilities. Also, funding capital expenditure to expand R&D facility in Vadodara and meeting general corporate purposes.

IPO details in brief

The IPO opens and closes on 16 July 2021 and 20 July 2021 respectively for subscription and will be listed at NSE and BSE.

This table walks us through the crucial IPO details in brief –

Type of issue Book Built Issue IPO
IPO price Rs. 1073 to Rs. 1083 / equity share
Share face value Rs. 10 / equity share
Market lot 13 shares
Minimum order quantity 13 shares

Reasons to trust Tatva Chintan IPO

Tatva Chintan is one of the leading chemical manufacturers of India, with a presence across multiple sectors. A look at its recent finance reports will show how the company progressed in terms of asset building and increased its profit margins.

Apart from that, some of the key strengths of the company include –

  • A diversified product portfolio
  • A wide customer base across multiple industries
  • Strategic location of the manufacturing facility in Gujarat, which is well connected
  • Leading manufacturer of phase transfer catalyst and structure directing agents
  • Experienced management and senior executive team

Parting thoughts

Now that the entire Tatva Chintan IPO timeline has been announced, it is time for interested investors to begin their research. Company finances and performances may provide an insight into its capabilities and an estimation of prospective returns.

Considering Tatva Chintan’s current market size and scope of business, this seems like a lucrative opportunity. Also, investors with interest in ESG-friendly stocks could be intrigued by the company’s outlook towards greener tech and practices. Needless to say, the prospect of surge in export volume is a bonus.

However, this is still a relatively unknown entity entering the market. Hence, a cautious approach is appropriate.

Looking for more IPO news? Angel One Blogs has all the latest information.


Frequently Asked Questions

  1. Who are the company promoters for Tatva Chintan?

Snehkar Rasiklal Somani, Chintan Nitinkumar Shah, and Ajaykumar Mansukhlal Patel are the promoters of Tatva Chintan.

  1. Who is the registrar of this IPO for Tatva Chintan?

Link Intime India is the registrar for Tatva Chintan.

  1. What is the post-issue shareholding for Tatva Chintan Pharma IPO?

The post-issue shareholding for Tatva Chintan Pharma is 79.17%.

  1. What is the lot size of the Tatva Chintan Pharma IPO?

The lot size of this upcoming IPO is 13 shares. Also, retail/individual investors can order up to 14 lots, i.e., 182 shares amounting to nearly Rs. 2 lakhs.

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