Tatva Chintan Pharma
Mainboard₹500 Cr issue
+95.00%
Listing gain over issue price
Issue size
₹500 Cr
1 lot at cut-off
₹14,079
Lot size
13shares
Open
16 Jul 2021
Close
20 Jul 2021
Allotment
26 Jul 2021
Listing
29 Jul 2021
Listing performance
Issue price
₹1,083
Listed at
₹2,111.80
Listing-day close
₹2,312.20
Latest price
₹1,569.30
Close on 23 Oct 2026
Listing gain
+95.00%
Return since issue
+44.90%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 16 Jul 2021 – 20 Jul 2021
- Listing date
- 29 Jul 2021
- Face value
- ₹10 per share
- Issue price
- ₹1,083 per share
- Lot size
- 13 shares
- Total issue size
- ₹500 Cr
- Market cap at offer price
- ₹2,400 Cr
- Promoter holding
- 100.00% → 79.17% pre-issue → post-issue
- ISIN
- INE0GK401011
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- Plot No.502 / 17, GIDC Estate, Ankleshwar, Bharuch, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 13,85,040 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 13 shares per lot, in multiples, at ₹1,083
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 13 | ₹14,079 |
| Retail (max) | 14 | 182 | ₹1,97,106 |
| S-HNI (min) | 15 | 195 | ₹2,11,185 |
| S-HNI (max) | 71 | 923 | ₹9,99,609 |
| B-HNI (min) | 72 | 936 | ₹10,13,688 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
13,85,040
Anchor portion
₹150 Cr
at ₹1,083 per share
Valuation and performance
Valuation at offer price
₹1,083 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹2,400 Cr |
About Tatva Chintan Pharma
Tatva Chintan Pharma Chem Limited, incorporated as a private limited company in June 1996 and converted to public limited company in February 2021, is the largest and only commercial manufacturer of SDAs for zeolites in India and enjoys the second largest position globally. The company is also one of the leading global producers of an entire range of PTCs in India and one of the key producers across the globe. The company manufactures a diverse portfolio of specialty chemicals used in various industries including emission control mechanisms, disinfectants, pesticides, and APIs. The company operates manufacturing facilities at Ankleshwar and Dahej in Gujarat, and a corporate office in Vadodara. It generates revenues through domestic sales and exports to over 25 countries including USA, China, Germany, Japan, South Africa and UK. In Fiscal 2021, the company reported revenue from operations of ₹3,003.59 million with profit for the year of ₹522.62 million.
Company Analysis
from RHPTatva Chintan Pharma Chem Limited is a specialty chemicals manufacturing company engaged in the manufacture of structure directing agents (SDAs), phase transfer catalysts (PTCs), electrolyte salts for super capacitor batteries, and pharmaceutical and agrochemical intermediates and other specialty chemicals (PASC).
Tatva Chintan Pharma Chem Limited, incorporated as a private limited company in June 1996 and converted to public limited company in February 2021, is the largest and only commercial manufacturer of SDAs for zeolites in India and enjoys the second largest position globally. The company is also one of the leading global producers of an entire range of PTCs in India and one of the key producers across the globe. The company manufactures a diverse portfolio of specialty chemicals used in various industries including emission control mechanisms, disinfectants, pesticides, and APIs. The company operates manufacturing facilities at Ankleshwar and Dahej in Gujarat, and a corporate office in Vadodara. It generates revenues through domestic sales and exports to over 25 countries including USA, China, Germany, Japan, South Africa and UK. In Fiscal 2021, the company reported revenue from operations of ₹3,003.59 million with profit for the year of ₹522.62 million.
specialty chemicalspharmaceutical and agrochemical intermediateszeolite additivesphase transfer catalystssuper capacitor battery electrolytes
Objects of the Issue
- Funding capital expenditure requirements for expansion of our Dahej Manufacturing Facility ₹1,471.00 million p.19
- Funding capital expenditure requirements for upgradation at our R&D facility in Vadodara ₹239.71 million p.19
- General corporate purposes ₹362.10 million p.19
- Funding capital expenditure requirements for expansion of our Dahej Manufacturing Facility ₹1,471.00 million p.85
- Funding capital expenditure requirements for upgradation at our R&D facility in Vadodara ₹239.71 million p.85
- General corporate purposes ₹362.10 million p.85
Issue Structure
- Total Issue
- ₹5,000.00 million (4,616,804 equity shares at ₹1,083 per share)
- Fresh Issue
- ₹2,250.00 million (2,077,562 equity shares)
- Offer for Sale
- ₹2,750.00 million (2,539,242 equity shares)
- Price Band
- ₹1,073 - ₹1,083 per equity share
- Lot Size
- 13 equity shares (Bid Lot)
- Face Value
- ₹10 per equity share
Business Model
The company manufactures specialty chemicals (SDAs, PTCs, electrolyte salts for super capacitor batteries, and PASCs) which are sold to customers as raw materials for use in emission control mechanisms, disinfectants, pesticides, APIs and other applications. Revenue is generated through both domestic sales and exports. The company does not have long-term agreements with most customers; instead, it relies on short-term purchase orders. Raw materials represent the largest expense at 50.24%, 55.52%, and 57.34% of revenue from operations in Fiscals 2021, 2020, and 2019 respectively.
Business Segments
Manufacture of structure directing agents and phase transfer catalysts for pharmaceutical industry
Manufacture of structure directing agents and phase transfer catalysts for agrochemical industry
Manufacture of structure directing agents and phase transfer catalysts for chemical industry
Quaternary ammonium compounds which help in the formation of particular channels and pores during the synthesis of zeolites. Zeolites have varied applications including as catalysts and adsorbents. Zeolites promoted with transition metals such as copper and iron are active for selective catalytic reduction for emission control in automotive applications.
PTCs are used to facilitate the migration of a reactant from one phase into another phase where the reaction occurs, in a heterogeneous multi-phase system. PTCs eliminate the need for costly and unsafe solvents and costly raw materials, minimizing waste issues. Widely used in green chemistry applications.
Electrolyte salts used in the manufacture of super capacitor batteries, which are used in automobile batteries and other batteries. The company is the largest producer of electrolyte salts for super capacitor batteries in India.
Products used in the manufacture of various pharmaceutical and agrochemical products as intermediates, disinfectants and catalysts, and solvents. Also includes specialty chemicals used in dyes and pigments, personal care ingredients, flavour and fragrance sectors.
Quaternary ammonium compounds are used as agents that are bioactive with antimicrobial activity used as pesticides, wood preservatives, sanitizers/disinfectants, fungicides, and hard-surface cleaners in commercial, medical, domestic, and agricultural applications. They are effective against fungi, bacteria, and viruses even at very low temperatures.
Phase-transfer catalysts facilitate the migration of a reactant from one phase into another where the reaction occurs. They function as detergents for solubilizing salts into the organic phase. They are used in the pharmaceuticals industry in synthesis, R&D, drug formulation, and laboratory applications. They provide enhanced reaction rates and yields, resulting in lower production, energy and waste costs.
Super-capacitors or ultra-capacitors are charge storage devices that store electrical charges via electrochemical and electrostatic processes. These have an unusually high energy density as compared to common capacitors. Electrolyte salts are used primarily in automotive and transportation (aerospace, locomotive, marine) industries and consumer electronics.
Chemical intermediates are generated during each step of the chemical reaction meant to change a reactant into a final product. Specialty intermediates are highly consumed in application segments like manufacturing, API, crop protection active ingredients, paints and coatings, detergents, textiles. Various chemistries are used including reagents, solvents, building blocks, protective groups, and lubricants.
Quaternary salts which help in the formation of particular channels and pores during the synthesis of zeolites. Zeolites have varied applications including as catalysts and adsorbents. SDAs promoted with transition metals have been proven active for selective catalytic reduction for emission control in automotive applications.
Used to facilitate the migration of a reactant from one phase into another phase where the reaction occurs in a heterogeneous multi-phase system. PTCs are used for a variety of industrial processes and green chemistry applications.
Used in the manufacture of super capacitor batteries, which are used in automobile batteries and other batteries. The company is the largest producer of electrolyte salts for super capacitor batteries in India.
Products used in the manufacture of various pharmaceutical and agrochemical products as intermediates, disinfectants and catalysts, and solvents. Also manufactures specialty chemicals used in dyes and pigments, personal care ingredients, flavour and fragrance sectors.
Manufacture and sale of specialty dyeing agents
Manufacture and sale of pharmaceutical active starting compounds
SWOT Analysis
Strengths
- • Largest SDA manufacturer in India; second globally(p.19)
- • Leading global producer of Phase Transfer Catalysts(p.19)
- • Strong revenue growth trajectory(p.34)
- • Established long-term customer relationships(p.31)
- • Dedicated R&D infrastructure(p.30)
- • Quality certifications and accreditations(p.40)
- • Strong credit rating upgrade(p.32)
- • Established safety procedures and adequate insurance coverage for manufacturing operations(p.46)
- • No history of labor disruptions and no unionized workforce(p.47)
- • Substantial insurance coverage relative to fixed assets(p.48)
- • Largest and only commercial SDA manufacturer in India; second largest globally(p.152)
- • Leading global PTC producer with consistent quality and technical expertise(p.152)
- • Diversified portfolio of 154+ products across multiple industries and geographies(p.152)
- • Modern manufacturing facilities with green chemistry processes and zero liquid effluent discharge(p.156)
- • Strong R&D capabilities with DSIR-approved facility and 82 commercialized products since 2011(p.157)
- • Robust financial performance with 21.70% revenue CAGR and 59.50% PAT CAGR over three years(p.157)
- • Experienced promoters with 24+ years in specialty chemicals and established global customer relationships(p.153)
- • Strategic manufacturing locations near Hazira port providing export/import and cost advantages(p.156)
- • Diverse specialty chemical product portfolio with strong growth trajectory(p.163)
- • DSIR-approved R&D facility with experienced team driving innovation(p.163)
- • Minimal product quality defects demonstrating strong quality control(p.164)
- • ISO-certified quality and environmental management systems across facilities(p.164)
- • Strategic geographic location of manufacturing facilities near port(p.163)
- • Two wholly-owned subsidiaries enabling direct market reach in US and Europe(p.163)
- • Strong sustainability credentials improving customer retention(p.165)
- • Largest commercial manufacturer of SDAs for zeolites in India and second-largest globally(p.253)
- • One of leading global producers of entire range of phase transfer catalysts(p.253)
- • Largest producer of electrolyte salts for super capacitor batteries in India(p.254)
- • Strong revenue growth and profitability trajectory with CAGR of 21.70% and 59.50%(p.255)
- • DSIR-recognized R&D facility with state-of-the-art infrastructure(p.254)
- • Green chemistry processes including electrolysis adopted for environmental sustainability(p.254)
- • Experienced promoters with over 24 years in specialty chemicals manufacturing(p.255)
- • Strong return on equity of 31.49% and return on capital employed of 32.98%(p.255)
Weaknesses
- • High dependence on limited suppliers for raw materials(p.29)
- • Significant revenue concentration from few customers(p.31)
- • Lack of long-term agreements with most customers(p.33)
- • High raw material costs as percentage of revenue(p.27)
- • Prior compliance violations with corporate regulations(p.38)
- • Significant dependence on contract labour(p.45)
- • Manufacturing facilities concentrated in single region(p.32)
- • Heavy reliance on leased premises for key facilities with renewal and termination risks(p.47)
- • Potential deficiencies in internal controls and financial reporting systems(p.47)
- • Promoters will retain significant controlling shareholding limiting minority shareholder influence(p.48)
- • Uncertainty regarding dividend payments dependent on future cash flows and capital requirements(p.47)
- • Related party transaction risks despite belief they are at arm's length(p.48)
- • Subsidiary financial information not independently audited(p.49)
- • Heavy dependence on exports; exports represented 70.58% of revenue in FY2021(p.152)
- • Concentration in specific product categories with SDA and PASC segments comprising 70% of revenue(p.154)
- • Limited number of customers with marquee names; customer concentration risk(p.153)
- • High raw material cost concentration affecting margins(p.163)
- • Significant dependence on imported raw materials from limited geographies(p.163)
- • Substantial debt obligations requiring servicing(p.174)
- • Underutilization of Dahej manufacturing capacity indicating operational inefficiency(p.162)
- • Concentration of production in two facilities creating operational risk(p.161)
- • High dependence on raw material costs representing 57.34% of revenue from operations(p.256)
- • Significant customer concentration with top 10 customers representing 59.99% of revenue(p.257)
- • Debt-to-equity ratio of 0.54 indicating leverage in capital structure(p.255)
- • No long-term agreements with raw material suppliers creating supply uncertainty(p.256)
- • GST compliance contingency with excess refund liability of Rs. 0.61 million(p.237)
- • Inventory buildup with goods-in-transit increasing significantly to Rs. 65.71 million(p.228)
Opportunities
- • Expansion of Dahej Manufacturing Facility(p.29)
- • R&D facility upgradation in Vadodara(p.29)
- • Strong specialty chemicals industry growth(p.19)
- • Growing Indian chemical market(p.19)
- • Expansion of product portfolio and customer base(p.34)
- • International market expansion potential(p.28)
- • Development of new products and processes(p.30)
- • Expansion of Dahej Manufacturing Facility to increase production capacity by 200 KL and 14 assembly lines(p.86)
- • Upgradation of R&D capabilities at Vadodara facility to develop enhanced product portfolio(p.90)
- • Listing on stock exchanges to enhance visibility, brand image, and create public market for shares(p.85)
- • India positioned as alternative to China; government PLI scheme and Make in India initiatives support specialty chemicals exports(p.159)
- • Growing global demand for green chemistry and emission control catalysts; SDA market expected to grow 6.6% CAGR in India through 2024(p.154)
- • Expansion of pharmaceutical and agrochemical intermediates market at 11-13% CAGR in India(p.143)
- • Super-capacitor and battery electrolyte market growing at 26% CAGR globally through 2024(p.136)
- • Electric vehicle adoption driving zeolite catalyst demand for emission control in automotive(p.160)
- • Expansion of manufacturing capacity at Dahej and R&D facility at Vadodara to capitalize on growth(p.159)
- • Growing global demand for SDAs in multiple industrial applications(p.160)
- • Increasing adoption of phase transfer catalysts in pharmaceutical green chemistry(p.160)
- • Strong growth in battery electrolyte market driven by automotive and consumer electronics(p.160)
- • Expansion of pharmaceutical and agrochemical intermediates markets globally(p.160)
- • Capacity expansion opportunities at Dahej facility with available headroom(p.173)
- • Growing global focus on green chemistry and sustainable technologies(p.253)
- • Increasing demand for phase transfer catalysts due to green chemistry focus(p.254)
- • Expansion potential of installed reactor capacity and assembly lines(p.254)
- • Export market expansion to over 25 countries with room for growth(p.253)
- • Development and commercialization of new products contributing growing revenue(p.255)
- • Applications of products in fast-growing industries including automotive and pharmaceutical(p.253)
Threats
- • Continuing impact of COVID-19 pandemic(p.25)
- • Volatility in raw material pricing and supply(p.27)
- • Foreign exchange rate fluctuations(p.36)
- • Intense competition in specialty chemicals industry(p.42)
- • Dependence on third-party transportation providers(p.42)
- • Environmental and regulatory compliance risks(p.31)
- • Operational risks from hazardous materials handling(p.34)
- • Potential customer defaults and payment delays(p.43)
- • Risk of workplace accidents, hazardous substance exposure, and environmental damage disrupting operations(p.46)
- • Potential labor unionization and strikes could disrupt operations for significant periods(p.47)
- • Interest rate fluctuations on variable-rate debt could increase financing costs(p.47)
- • Financial instability and volatility in global and Indian financial markets(p.50)
- • Regional conflicts and terrorist attacks in South Asia may destabilize India and affect business(p.50)
- • Natural disasters including cyclones, earthquakes, floods could adversely affect operations(p.51)
- • Competition Act enforcement and merger control provisions could restrict acquisitions and agreements(p.51)
- • Inflation may prevent proportional price increases to customers affecting profitability(p.53)
- • Changes in tax laws and loss of SEZ tax benefits could materially impact profitability(p.54)
- • Foreign exchange fluctuations could reduce value of dividends and proceeds from share sales for foreign investors(p.57)
- • Global specialty chemicals market highly fragmented with intense competition from established players(p.123)
- • Commodity price volatility and forex risks affecting margins and working capital(p.133)
- • Heavy reliance on China-dependent supply chains; ~65% of key raw materials imported from China(p.120)
- • Regulatory pressures and environmental compliance requirements increasing operational costs(p.120)
- • Industry cyclicality affecting demand from automotive, construction, and consumer electronics sectors(p.110)
- • Chinese manufacturers increasing competitiveness despite environmental constraints; still producing >50% of global battery electrolytes(p.135)
- • Intense competition from large multinational and regional competitors(p.166)
- • Regulatory compliance burdens under multiple environmental and manufacturing acts(p.165)
- • Exposure to foreign exchange fluctuations affecting import costs and export revenues(p.163)
- • Utility cost volatility impacting operational profitability(p.163)
- • Dependency on specialized raw materials subject to supply chain disruptions(p.163)
- • Commodity market fluctuations and price volatility in raw material supply(p.256)
- • Foreign exchange rate fluctuations affecting exports and import costs(p.257)
- • Intense competition from multinational and regional competitors with greater resources(p.257)
- • COVID-19 pandemic risk causing lockdowns and supply chain disruptions(p.257)
- • Regulatory and compliance risks including GST disputes and IGST liability on imports(p.237)
- • Risk of demand reduction if increased raw material costs cannot be passed to customers(p.256)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Ajaykumar Mansukhlal Patel | Promoter | 21.02% | — |
| Chintan Nitinkumar Shah | Promoter | 28.12% | — |
| Shekhar Rasiklal Somani | Promoter | 31.39% | — |
| Priti Ajaykumar Patel | Promoter Group | 6.15% | — |
| Ajay Mansukhlal Patel HUF | Promoter Group | 6.16% | — |
| Darshana Nitinkumar Shah | Promoter Group | 1.83% | — |
| Kajal Shekhar Somani | Promoter Group | 1.59% | — |
| Shitalkumar Rasiklal Somani | Promoter Group | 0.05% | — |
| Samirkumar Rasiklal Somani | Promoter Group | 0.30% | — |
| Ajaykumar Mansukhlal Patel | Promoter | 21.02% | 18.08% |
| Chintan Nitinkumar Shah | Promoter | 28.12% | 22.09% |
| Shekhar Rasiklal Somani | Promoter | 31.39% | 25.40% |
| Ajay Mansukhlal Patel HUF | Promoter Group | 6.16% | 4.16% |
| Priti Ajaykumar Patel | Promoter Group | 6.15% | 4.15% |
| Chintan N Shah HUF | Promoter Group | 2.23% | 2.02% |
| Darshana Nitinkumar Shah | Promoter Group | 1.83% | 1.23% |
| Kajal Shekhar Somani | Promoter Group | 1.59% | 0.98% |
| Shital Chintan Shah | Promoter Group | 1.15% | 1.04% |
| Samirkumar Rasiklal Somani | Promoter Group | 0.30% | — |
| Shitalkumar Rasiklal Somani | Promoter Group | 0.05% | — |
| Chintan Shah | Promoter | — | — |
| Ajay Patel | Promoter | — | — |
| Shekhar Somani | Promoter | — | — |
| Ajaykumar Mansukhlal Patel | Promoter | 21.02% | 18.08% |
| Chintan Nitinkumar Shah | Promoter | 28.12% | 22.09% |
| Shekhar Rasiklal Somani | Promoter | 31.39% | 25.40% |
| Mr. Shekher R. Somani | Promoter | 31.39% | — |
| Mr. Chintan N. Shah | Promoter | 28.12% | — |
| Mr. Ajay M. Patel | Promoter | 27.18% | — |
| Ajaykumar Mansukhlal Patel | Promoter | — | — |
| Chintan Nitinkumar Shah | Promoter | — | — |
| Shekhar Rasiklal Somani | Promoter | — | — |
| Ajaykumar Mansukhlal Patel | Promoter | — | — |
| Chintan Nitinkumar Shah | Promoter | — | — |
| Shekhar Rasiklal Somani | Promoter | — | — |
| Darshana Nitinkumar Shah | Promoter Group | — | — |
| Priti Ajaykumar Patel | Promoter Group | — | — |
| Ajay Mansukhlal Patel HUF | Promoter Group | — | — |
| Kajal Shekhar Somani | Promoter Group | — | — |
| Shitalkumar Rasiklal Somani | Promoter Group | — | — |
| Samirkumar Rasiklal Somani | Promoter Group | — | — |
Leadership
Ajaykumar Mansukhlal Patel · Promoter
Chintan Nitinkumar Shah · Promoter
Shekhar Rasiklal Somani · Promoter
Apurva Dubey · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Tatva Chintan Pharma IPO FAQs
What is the lot size of Tatva Chintan Pharma IPO?
The minimum lot size of Tatva Chintan Pharma IPO is 13 shares. One lot costs ₹14,079 at the cut-off price.
When does Tatva Chintan Pharma IPO open and close?
Tatva Chintan Pharma IPO opened for subscription on 16 Jul 2021 and closed on 20 Jul 2021.
What is the listing date of Tatva Chintan Pharma IPO?
Tatva Chintan Pharma IPO listed on 29 Jul 2021.