Specialty chemical manufacturing company Tatva Chintan Pharma Chem on Tuesday fixed a price band of Rs 1,073-1,083 a share for its Rs 500-crore initial share sale.
The three-day initial public offer (IPO) will open on July 16 and conclude on July 20 and the bidding for anchor investors will open on July 15, the company announced in a virtual press conference.
The Rs 500-crore 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.
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Proceeds from the fresh issue would be used towards funding capital expenditure requirements for expansion of the company’s Dahej manufacturing facility; upgradation of research and development facility in Vadodara; and general corporate purposes.
In addition, the company said it expects to receive the benefits of listing of equity shares on the stock exchanges including enhancing visibility and brand image among existing and potential customers and creating a public market for equity shares in India.
Half of the issue has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 15 per cent 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 fiscal year ended on 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.