Tatva Chintan Pharma Chem : Meditating Growth

Tatva Chintan Pharma Chem : Meditating Growth

After hitting the pandemic every sector faced losses but there is an exception in the pharmaceutical companies.


Tatva Chintan Pharma Chem : Meditating Growth

After hitting the pandemic every sector faced losses but there is an exception in the pharmaceutical companies. In this topic, let’s have a discussion about Tatva Chintan Pharma Company. 

Looking at the company profile some points come to, this company manufactures chemical products like “Structure-directing agents”, “Electrolyte slate for Batteries of Super capacitor” and “Phase Transfer Catalyst”. 

Basically, it makes pharmaceutical products and agronomic products, and other chemical products. The export partner of the company is more than 24 countries, and the company generates more than 70 percent of its revenue from those exports. If we have a look at the revenue generation of the company then there is also a steady growth from the financial year 2019 to the financial year 2020 despite the strong effect of pandemics.

 It has a long and rigid customer base with some prominent companies like Asian Paints, Merck, Bayer AG. The company generates more than 59 percent of its revenue from this strong customer base. So technically it can be said that the company holds a strong position in the market. This was the profile and working method of the company but let’s have a look at the companies with respect to the market. 

Very recently, it launched its IPO and which is the second most subscribed IPO this year. If we follow the number then we can find that the number is 180 times the subscription. Before going into the deep let’s have a discussion about the IPO. The full form of this is Initial Public Offering. This means a private company wants to be listed on the stock market and wants to make the company’s share publically.

Looking at the data, the share offerings were a little bit higher at 3.25 million and the bid generation was for 588 million. In terms of rupees, the process generates a demand of more than Rs.63, 000. The IPO was subscribed at the institutional portion was 185 times and in the case of individuals of high net worth, the figure was 512 times and near about 35 times in the case of retail. 

There is only one company that made a more subscribed IPO than this, and that is the IPO of MTAR Technologies which generates subscriptions of 200 times. Looking at the company’s 500 crore IPO, it has two parts one is a 275 crore offer for sale and 225 fresh crore fund. 

The market capitalization of the company at the pick level was near about 2400 crore, which demands a PE of 41.62 times. But in the case of, Arti Industries trading at a PE of 59 times and Navin Fluorine International trading at 74 times. But later there was a downfall in the IPO which was near about 21 percent.

The price of a share is Rs.1073 to Rs.1083. That is why the share of the Tatva Chintan Pharma Company became one of the front-level choices of the investors and near about all of the brokerage agency’s suggestions.

Looking at the gray market premium of the company, we can find that there was a significant rise in the shares in the last quarter of July. The shares of the company which was unlisted will be trading at Rs. 1100. The price of the shares was about 2180 per piece.

 

Edited By Team CLIQTAX

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