Tatva Chintan Pharma Chem IPO: Tatva Chintan IPO on day 3 has been subscribed 56 times so far; GMP peaks to 70%
NEW DELHI: The IPO of Tatva Chintan Pharma Chem continued to arouse great interest from investors on the third bidding day on Tuesday. The issue was fully subscribed on the first day.
By 1:10 p.m., 18,34,46,952 shares were received against 32,61,882 offered shares, which corresponds to a subscription of 56.24 times. Institutional investors usually bid for IPOs on the third day.
Tatva Chintan Pharma Chem has already received offers worth Rs.149.99 billion from 22 anchor investors in the upper price range of Rs.1,083 per share.
Goldman Sach, HSBC, Axis MF, Aditya Birla MF, Nippon Life AMC, Aberdeen, HDFC MF and Mirae Asset are some of the institutional investors who have invested in the anchor round.
There is also great demand for its shares in the gray market. The meter has a premium of around Rs 760 over the tape price, which equates to a gray market premium of 70 percent.
Most analysts have advised investors to subscribe to the initial public offering of Rs 500 crore (IPO). The price range of the issue was set at Rs 1,073-1,083 per share. Bids can be submitted for at least 13 shares and then in multiples.
The company and its shareholders plan to raise Rs 500 crore from the market. The initial public offering includes new shares valued at Rs 225 billion and an offer to sell from promoters and shareholders valued at Rs 275 billion. The company will use the new issue of Rs. 225 billion worth of shares to fund its investment plans such as the Dahej manufacturing facility and modernizing its R&D facility in Vadodara.
“The company brings the issue to the PE multiple of 42.06 on the post-issue FY21 basis. It is one of the world’s leading manufacturers of a whole range of PTCs in India and one of the most important manufacturers in the world with a broad customer base and good future prospects. We recommend ‘subscribing’ this issue for a stock market profit and long term purpose, ”said Astha Jain of Hem Securities.
In the upper price range of Rs 1,083, the P / E ratio is at a significant discount compared to the industry average of around 56 times.