Tatva Chintan Chem Ltd has filed a draft red herring prospectus with the Securities Exchange Board of India (Sebi) to raise Rs450 crore via an initial public offering (IPO). The offer comprises a fresh issue of equity shares worth Rs225 crore and an offer for sale of shares aggregating Rs225 crore by its existing promoters and shareholders. ICICI Securities and JM Financial are the book lead managers to the issue.

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

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As of December, the company had an installed production capacity of 280 KL and 13 assembly lines at its manufacturing facilities. Pursuant to the proposed expansion, it intends to enhance the installed capacity at its manufacturing facilities by 200 KL and 14 assembly lines. For fiscal 2020, the company reported a revenue of Rs 263.24 crore against Rs 206.31 crore a year ago, while net profit for the period rose to Rs 37.79 crore from Rs 20.54 crore. As of January 2020, the firm had a total outstanding debt of Rs 83.17 crore.

Tatva Chintan is a specialty chemical manufacturing company engaged 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.