[Funding alert] Tatva Chintan Pharma Chem raises Rs 150 Cr from anchor investors

Specialty chemical manufacturing company Tatva Chintan Pharma Chem on Thursday said it has garnered Rs 150 crore from anchor investors ahead of its initial share sale, which will open for public subscription on Friday.

The company has decided to allocate 13,85,040 equity shares at Rs 1,083 apiece to anchor investors, aggregating the transaction size to Rs 150 crore, a circular uploaded on the BSE website showed.

Goldman Sachs India Ltd, Abu Dhabi Investment Authority, Aberdeen Standard Asia Focus Plc, Malabar India Fund Ltd, Axis Mutual Fund (MF), ICICI Prudential MF, HDFC MF, SBI MF, Aditya Birla Sun Life MF and SBI Life Insurance Company are among the anchor investors who participated in the anchor book.

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The Rs 500-crore initial public offer (IPO) comprises fresh issuance of equity shares worth Rs 225 crore and an offer of sale to the tune of Rs 275 crore by existing promoters and shareholders.

The offer for sale size has been increased to Rs 275 crore from Rs 225 crore earlier mentioned in the draft papers. The issue, with a price band of Rs 1,073-1,083 a share, will open on July 16 and conclude on July 20.

Proceeds from the fresh issue would be used towards funding capital expenditure requirements for expansion of the company's Dahej manufacturing facility; up-gradation of an R&D facility in Vadodara; and general corporate purposes.

Half of the issue has been reserved for qualified institutional buyers (QIBs), 35 percent for retail investors and the remaining 15 percent for non-institutional investors.

Vadodara-based Tatva Chintan is a specialty chemical manufacturing company. The company exports most of its products to over 25 countries, including the US, China, Germany, Japan, South Africa and the UK.

For the fiscal ended March 31, 2020, the company posted a profit of Rs 37.78 crore as compared to Rs 20.54 crore in the preceding financial year, while it reported a revenue of Rs 263.23 crore against Rs 206.3 crore.

ICICI Securities and JM Financial are the merchant bankers to the issue. The equity shares of the company will be listed on NSE and BSE.