Tatva Chintan Chem files draft IPO papers with SEBI

Tatva Chintan Chem Ltd has filed a draft red herring prospectus with the market regulator to raise Rs450 crore through an initial public offering (IPO).

The offer includes a fresh issue of equity shares worth Rs225 crore and an offer for sale of shares totaling Rs225 crore by its existing promoters and shareholders.

ICICI Securities and JM Financial are the book lead managers to the issue.

Net proceeds from the issue will be utilized to fund capital expenditure for expansion of its Dahej manufacturing facility and upgradation at its R&D facility in Vadodara.

As of December, the company had an installed production capacity of 280 KL and 13 assembly lines at its manufacturing facilities. According to the proposed expansion, it plans to improve the installed capacity at its manufacturing facilities by 200 KL and 14 assembly lines.

For fiscal 2020, the company recorded a revenue of Rs263.24 crore against ₹206.31 crore a year ago, while net profit for the period grew to ₹37.79 crore from ₹20.54 crore. As of January 2020, the firm had an aggregate outstanding debt of Rs83.17 crore.

Tatva Chintan is a specialty chemical manufacturing company involved in the manufacture of a diverse portfolio of structure-directing agents, phase transfer catalysts, electrolyte salts for supercapacitor batteries and pharmaceutical and agrochemical intermediates, and other specialty chemicals.

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