{"id":843,"date":"2021-07-30T09:53:53","date_gmt":"2021-07-30T09:53:53","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=843"},"modified":"2021-07-30T09:53:54","modified_gmt":"2021-07-30T09:53:54","slug":"tatva-chintan-ipo-has-doubled-the-investors-wealth-what-investors-should-do-now","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/tatva-chintan-ipo-has-doubled-the-investors-wealth-what-investors-should-do-now\/","title":{"rendered":"Tatva Chintan IPO has doubled the investor\u2019s wealth. What investors should do now?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Tatva Chintan Pharma has become the star IPO of 2021 after\nlisting with more than 100% premium gains. The specialty chemical player is 2<sup>nd<\/sup>\nIPO of 2021 that has debut with 100% listing gains after G R Infraprojects.\nTatva Chintan Pharma is the 2<sup>nd<\/sup> most subscribed IPO of 2021 after\nMTAR Technologies. The IPO of Tatva Chintan Pharma is listed at Rs. 2,202, a\npremium of 104% on the upper price band of issue price at Rs. 1,083. The stock\nmade a high of Rs. 2,534 and seems unstoppable despite high valuations. A bulk\ndeal on Tatva Chintan pharma share has been recorded on the listing day in\nwhich Plutus Wealth Management LLP bought 0.65 million shares of the specialty\nchemical manufacturer at Rs. 2,174\/share.<\/p>\n\n\n\n<p>Earlier, the IPO of Tatva Chintan Pharma was subscribed 185.23 times. Retail participants were very much excited for the issue, which was clear in their response to the defined quota. The retail quota was subscribed 35.35 times while the Non-Institutional Investors and Qualified Institutional Buyers subscribed the IPO 512.22 times and 185.23 times respectively.<\/p>\n\n\n\n<p>Must Read: <a href=\"https:\/\/www.invest19.com\/blog\/paytm-and-mobikiwk-filed-their-drhp-to-market-regulator-sebi\/\">Paytm and Mobikiwk filed their DRHP to market regulator SEBI<\/a><\/p>\n\n\n\n<p>The issue size of 500 crores was a mix of fresh issue of Rs.\n225 crores and offer for sale of Rs. 275 crore. The specialty chemical player\nclearly stated that out of net proceeds from fresh issue:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>An amount of Rs. 147.10 cr. will be allocated\nfor capital expenditure requirements to expand the Dahej Manufacturing Facility.<\/li><li>An amount of Rs. 23.97 cr. will be utilized for\nupgradation at R&amp;D facility in Vadodara.<\/li><li>Rest will be utilized for general corporate\npurpose.<\/li><\/ul>\n\n\n\n<p>Bumper listing from the specialty chemical players was\nreflected in the grey market premium of the IPO when it was trading in the\nunlisted market. The grey market premium of the issue was increasing day after\nday despite rising volatility in the equity markets. Market participants were\naware with the potential of the IPO which is why the grey market premium of IPO\ndidn\u2019t see any sign of uncertainty.<\/p>\n\n\n\n<p>As the IPO is rolled out now and investors have made much\nmore than anticipated, market participants are unsure whether to hold it\nfurther or book bumper gains.<\/p>\n\n\n\n<p>Tatva Chiintan Pharma is engaged in the manufacturing of a\ndiverse portfolio of structure directing agents (SDA), phase transfer\ncatalysts, electrolyte salts for super capacitor batteries and pharmaceutical\nand agrochemical intermediates and other specialty chemicals. As a B2B\nplatform, the company focuses on application of their products which form a key\ningredient for their customers\u2019 manufacturing and industrial processes.<\/p>\n\n\n\n<p>It is the sole commercial manufacturer of structure\ndirecting agents (SDA) for zeolites in India and second largest globally. The\ncompany has build strong relationship with its customers such as Merck, Bayer\nAG, Ipox Chemicals, Asian Paints, Navn Fluorine, Laurus Labs, SRF and Tosoh\nAsia.<\/p>\n\n\n\n<p>Tatva Chintan is an also exporter to over 25 countries,\nincluding the USA, China, Germany, Japan, South Africa, and the UK. The company\nhas delivered a decent growth in revenues by 21.7% in last two years. EBITDA\nmargins of the company stood at 23.38%, similar to some of listed peers but\nlower than its major rivals Fine organics, Navin Fluorine and SRF. Return on\nEquity at 31.49% is similar to the listed peers. However, the valuations are stretched\nnow. The company is spending heavily on capacity expansion that may increase\ntheir revenues further. At the issue price band of Rs. 1,073-1,083 and FY21\nEarning Per Share (EPS) of Rs. 26.02, the company was demanding a P\/E multiple\nof 41.65x. Now, the issue is trading at a P\/E multiple of 88.2x, higher than\nthe listed players. <\/p>\n\n\n\n<p>It is worth-mentioning that the company is engaged in\nmanufacturing of SDA and PTC products, which have applications in green\nchemistry and company is continuously focusing on green and sustainable\ntechnologies. This will keep valuations of the company high as it is\nmaintaining the eco-friendly standards. Investors should keep holding this\nstock for longer horizon and stick to get more returns.<\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 2,741<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"843\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">6    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Tatva Chintan Pharma has become the star IPO of 2021 after listing with more than 100% premium gains. The specialty chemical player is 2nd IPO [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/tatva-chintan-ipo-has-doubled-the-investors-wealth-what-investors-should-do-now\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":844,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,2,7],"tags":[],"class_list":["post-843","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo","category-stock-market","category-investment"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/843","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=843"}],"version-history":[{"count":1,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/843\/revisions"}],"predecessor-version":[{"id":845,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/843\/revisions\/845"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/844"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=843"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=843"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=843"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}