Clean Science and Technology IPO Review: Looking into the record number of IPOs hitting this month, Clean Science and Technology Ltd IPO opens on 7th July and closes on 9th July 2021.
In this article, we cover the Clean Science and Technology IPO review and look into important IPO information to find out the possible prospects of the company.
Table of Contents
Clean Science and Technology IPO Review – About the Company
Founded in 2003, Clean Science and Technology Ltd is a global leader in chemical manufacturing.
The company manufactures functionally critical specialty chemicals such as Performance Chemicals (MEHQ, BHA, and AP), Pharmaceutical Intermediates (Guaiacol and DCC), and FMCG Chemicals (4-MAP and Anisole).
What sets them apart from other chemical companies is that they are one of the few chemical companies that have focused on their R&D to develop technologies using in-house catalytic processes which is eco-friendly and cost-competitive.
The company manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates, and FMCG chemicals.
These chemicals have a good customer base not only in India but also internationally. Its exports include markets like China, Europe, the USA, Korea, Taiwan, and Japan. In FY20, exports contributed 67.86 percent to total revenue.
Some of their renowned customers include Bayer AG, Genex Laboratories Limited, Nutriad International NV, SRF Limited, Vinati Organics, etc.
They also have multiple manufacturing facilities. Three are located in Kurkumbh (Maharashtra), one of these has recently been opened.
The existing two facilities had a combined installed capacity of 29,900 million tonnes per annum (MTPA) as of March 2021.
In addition to this, the company is also planning to construct a fourth facility at the same location. These facilities are automated to maintain high levels of accuracy and efficiency.
The company has maintained strong financials. The company achieved revenue growth of 22% in FY21 amidst the Covid19 crisis. The revenue has grown at a CAGR of 9.1% between Fy19-21.
Grey Market Premium of Clean Science and Technology IPO
The shares of Clean Science and Technology were trading at a 50% premium in the grey market before the IPO. The shares traded at a price of Rs. 1,320 giving them a premium of Rs. 440 over their issue price band of Rs 880-900 per share.
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Key IPO Information of Clean Science and Technology
The promoters of the company include Ashok Ramnarayan Boob, Krishnakumar Ramnarayan Boob, Siddhartha Ashok Sikchi, and Parth Ashok Maheshwari.
The business is strongly held together by family members. Ashok Ramnarayan Boob and Krishnakumar Ramnarayan Boob are siblings. Siddhartha Ashok Sikchi and Parth Ashok Maheshwari are their nephews.
The IPO will only include an offer for sale from the promoters Ashok Ramnarayan Boob, Krishnakumar Ramnarayan Boob, Siddhartha Ashok Sikchi, and Parth Ashok Maheshwari.
| Particulars | Details |
|---|---|
| IPO Size | ₹963.28 Cr |
| Fresh Issue | --- |
| Offer For Sale(OFS) | ₹1,546.62 Cr |
| Opening Date | Jul 7, 2021 |
| Closing Date | Jul 9, 2021 |
| Face Value | ₹1 per equity share |
| Price Band | ₹880 to ₹900 per equity share |
| Lot Size | 16 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 13 |
| Listing Date | Jul 19, 2021 |
They have appointed Axis Capital, JM Financial, and Kotak Mahindra Capital Company as the book running lead managers to the issue. Link Intime India Private Ltd is the registrar to the issue.
Purpose of the Clean Science and Technology’s IPO
Clean Science and Technology has decided to opt for an IPO for the following purpose
- Offer for Sale
- To achieve the share listing benefits on the BSE and NSE.
In Closing
The IPO opens on 7th July and closes on 9th July 2021. For retail investors, it can be a good opportunity to look into the company’s future prospects and apply for the IPO if they believe in the products and growth prospects of Clean Science and Technology Ltd.
That’s all for this post. Do let us know what you think of the Clean Science and Technology IPO review. Are you planning to apply for this IPO or not? Comment below. Cheers!
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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