Vadodara-based Tatva Chintan Pharma Chem Limited (TCPCL), a specialty chemicals manufacturing company, has filed for Draft Red Herring Prospectus (DRHP) with the market regulator SEBI for its Initial Public Offering (IPO).
The IPO comprises fresh issuance of equity shares worth Rs 225 crore and an offer of sale to the tune of Rs 225 crore by existing promoters and shareholders. The net proceeding from the fresh issue would be used towards funding capital expenditure requirements for expansion of the company's Dahej manufacturing facility; up-gradation of an R&D facility in Vadodara; and general corporate purposes.
The chemical company exports most of its products to over 25 countries, including the USA, China, Germany, Japan, South Africa and the UK.
For the 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.
The revenue from operations of the company grew at a CAGR of 39.22 per cent, EBITDA grew at a CAGR of 51.90 per cent and profit after tax has increased at a CAGR of 75.36 per cent from fiscal 2018 to fiscal 2020.
The promoters of the company are Chintan Shah, Ajay Patel and Shekhar Somani, who each has over 24 years in the specialty chemicals manufacturing industry and have established strong business relationships with domestic as well as overseas customers.
In the fiscals 2018, 2019 and 2020, and in the nine months ended December 31, 2020, the company’s total revenue was Rs 137.20 crore, Rs 206.8 crore, Rs 264.6 crore and Rs 195 crore, respectively. Meanwhile, the profit after tax in Fiscal 2020 and in the nine months ended December 31, 2020, was Rs 37.8 crore and Rs 31.1 million, respectively.
TCPCL is the largest and only commercial manufacturer of SDAs for zeolites in India. It also enjoys the second-largest position globally. In addition, the company is one of the leading global producers of an entire range of PTCs in India and one of the key producers across the globe.