Tatva Chintan IPO elicits solid interest from retail investors

If you go by the first day Tatva chintan IPO response trends, it does look like retail investors appear to be impressed by the issue. While the institutional response was tepid on Day 1 and HNIs managed to fill the book just once, it was the retail portion that got subscribed over 8 times at the end of the first day. The Rs.500 crore IPO of Tatva Chintan Pharmachem consists of Rs.225 crore of fresh issue and Rs.275 crore offer for sale to give partial exit to promoter shareholders. The IPO has been, priced in the band of Rs.1,073-Rs.1,083, opened on Friday 16 July and will close for subscription on Tuesday 20 July.

Out of the 32.62 lakh shares on offer in the IPO, Tatva Chintan saw applications for 1.47 crore shares at the end of Day-1 of the IPO, implying an overall subscription of 4.50 times. However, the granular break-up is a lot more interesting. The QIB portion got subscriptions for just 0.50X of the allocation quota, but that is normal as most QIB applications come in on the last day. Similarly, the HNI portion got subscribed just 1.13 times, but that is also the segment where typically the funded applications come in on the last day of the IPO. The real big story was the retail portion, which got subscribed 8.23 times at the end of the first day, showing tremendous retail investor traction.

On the first day, the QIB applications mainly came from FPIs and none from mutual funds. Among retail investors; out of the 16.31 lakh shares on offer, valid bids were received for 1.34 crore shares, of which bids for 1.01 crore shares were received at cut-off price.