Tatva Chintan gains after fixing floor price of Rs 1704.74 a share for QIP

Tatva Chintan shares were up over a percent in the morning trade on August 25 after the specialty chemical firm set a floor price of Rs 1704.74 a share for its Rs 200 crore QIP.

The floor price is close to the current market price, which is being viewed positively by investors. The firm proposes to raise Rs 200 crore through qualified institutional placement (QIP).

A QIP is a fundraising tool where only qualified institutional buyers can participate unlike in an IPO or FPO.

Tatva Chintan shares have fallen 19 percent since January 1 and 27 percent in the last year, in keeping with the decline in the larger chemical sector.

Industry peers such as Gujarat Flurochemicals has lost 5 percent since January 1 and Atul Limited 16 percent. Navin Flourine, however, has gained 9 percent since January 1.

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Tatva Chintan’s net profit fell 3 percent year-on-year (YoY) to Rs 9.5 crore in the April-to-June quarter. Revenue increased 29 percent YoY to Rs 114.36 in the same period.

At 11.12 am, the stock was trading at Rs 1,727.20 on the National Stock Exchange, up 0.61 percent from the previous close,

Tatva Chintan manufactures and sells specialty chemicals pharma and agro intermediates and quaternary ammonium compounds.

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