Clean Science and Technology IPO: The initial public offering (IPO) of Clean Science and Technology will open for subscription today, July 7, 2021, at a price band of Rs 880-900 per share. The offer will be available for subscription till Friday, July 9, 2021.
The IPO is entirely an offer for sale (OFS) by its existing promoters and other shareholders. It does not involve any fresh issue. Those offering shares in the OFS include Ashok Ramnarayan Boob, Krishnakumar Ramnarayan Boob, Siddhartha Ashok Sikchi, Parth Ashok Maheshwari and other selling shareholders.
The Pune-based company is into the speciality chemical segment. It manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates and FMCG chemicals. Its products are used as key starting level materials, as inhibitors, or as additives, by customers, for products.
Clean Science and Technology is known for an established market position and dominant presence in key specialty chemical products, well-diversified clientele, and application of the products largely in industries manufacturing essentials which limits the impact of the COVID-19 pandemic.
The company has multiple manufacturing facilities in Kurkumbh, MIDC Maharashtra that are automated to maintain high levels of accuracy and efficiency. Its customers include manufacturers and distributors in India as well as other international markets including China, Europe, the US, Taiwan, Korea, and Japan.
Before heading into the IPO, Clean Science and Technology raised nearly Rs 464 crore (Rs 463,98,63,600) from 41 anchor investors in lieu of 51,55,404 equity shares at Rs 900 each, data from the stock exchanges showed.
The anchor investors include the likes of Government of Singapore, BlackRock Global Funds, Goldman Sachs India, Abu Dhabi Investment Authority, BNP Paribas Arbitrage- ODI, Axis Mutual Fund, ICICI Prudential Mutual Fund, HDFC Mutual Fund, SBI Mutual Fund, SBI Life Insurance Company, ICICI Prudential Life Insurance Company and Aditya Birla Sun Life Insurance Company among others.
Investors who wish to subscribe to Clean Science and Technology IPO can bid in a lot of 16 equity shares and multiples thereafter. At the upper price band, they will be shelling out Rs 14,400 to get a single lot of Clean Science and Technology. The shares will be listed on both BSE as well as the National Stock Exchange (NSE).
The applicants also must note that the cut-off time for UPI mandate confirmation is Monday, July 12, 2021, upto 12:00 pm. If they fail to do so then their application may not be considered.
Kotak Mahindra Capital Company, Axis Capital and JM Financial are the book-running lead managers to the IPO while Link Intime India is the registrar of the issue.
The research team at Geojit Financial Services in their IPO note have recommended “Subscribe” to the offer while those at HDFC Securities haven’t given any rating to the IPO.
Geojit Research in its IPO note said, “At the upper price band of Rs 900, CSTL is available at a P/E of 48x (FY21) which appears to be fully priced in. However, we assign a “Subscribe” rating for the issue on a long-term basis considering its technical expertise, process innovation, consistent focus on R&D, positive industry outlook, superior margin profile and healthy return ratios.”