Tatva Chintan zooms 113% to Rs 2,310 in highest listing gain this year

Issue price was Rs 903 per share, IPO had garnered 180x subscription

Shares of Tatva Chintan Pharma Chem more than doubled during their stock market debut on Thursday. The stock got listed at Rs 2,111, with a gain of 95 per cent over the issue price of Rs 903 per share. It ended the session at Rs 2,310.25, with a gain of 113.3 per cent.

The listing gain clocked by Tatva Chintan was highest for IPOs this year. Indigo Paints and GR Infraprojects are two other companies whose share price has doubled during their trading debut in 2021. Also, the previous three companies to list have seen their stock price gain at least 65 per cent on the first day—a underscoring the ongoing IPO frenzy. These include Zomato, Clean Science Technology and GR Infra.

Tatva Chintan Pharma’s initial public offer (IPO) garnered 180 times subscription. It is the second most subscribed offering of the year after MTAR Technologies.

Tatva Chintan is a chemical manufacturing company that produces structure-directing agents (SDAs), phase transfer catalysts (PTCs), electrolyte salts for supercapacitor batteries, pharmaceutical and agrochemical intermediates. The company’s Rs 500-crore IPO consisted of Rs 225 crore fresh fundraise and a Rs 275 crore offer for sale.

At Thursday’s close, Tatva Chintan has a market cap of Rs 5,121 crore.

Most analysts had recommended their clients to subscribe to the company’s IPO as it was priced cheaper compared to its listed peers such as Navin Fluorine International and Alkyl Amines Chemicals. However, post-listing Tatva Chintan is among the most expensive stocks in the chemicals space on a price-to-earnings basis.