Specialty chemical company Clean Science and Technology initial public offering (IPO) is set to open for subscription today. The three-day IPO issue will close on July 9 and the price band has been fixed at ₹880-900 per share. Clean Sciences will not receive any funds from the public issue as the IPO is entirely an offer for sale (OFS).
The company manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates and FMCG chemicals. The company has multiple manufacturing facilities in Kurkumbh, MIDC Maharashtra that are automated to maintain high levels of accuracy and efficiency.
IPO details –
Issue period: 7 July 2021 to 9 July 2021
Price band: ₹880 to ₹900 per equity share
Bid lot: 16 shares and in multiples thereof
Face value: ₹1 per equity share
Listing: The stock will get listed on exchanges by 19 July.
Object of the issue: The object of the issue is to make an offer for sale (OFS) of equity shares worth ₹15.5 billion and to achieve the listing benefits on the BSE and NSE.
Financials: Clean Science and Technology’s revenue has grown at a CAGR of 9.1% over FY19-21 on the back of strong 22% top line growth in FY21 despite the Covid 19 crisis. Moreover, the company has posted strong EBITDA and PAT CAGR of 23.6% and 26.3% respectively during the same period, Angel Broking said.
GMP: The company’s shares in the unlisted market have been trading at a massive 50% premium. The grey market is an unofficial platform, wherein trading starts after the announcement of IPO price band till the listing of IPO shares.
Should you subscribe?: ”Given strong financial performance, industry leading margins and returns ratios CSTL should be able to command a premium to peers. We believe that the India specialty chemical industry is going to be one of the biggest beneficiaries of shifting of supply chains post the Covid-19 pandemic. Given CSTL’s financial performance, industry leading returns ratios and favourable outlook for the industry we recommend “Subscribe” to the issue,” Jyoti Roy, DVP-Equity strategist of Angel Broking said.
Along with Clean Science, construction firm GR Infrastructure IPO is also scheduled to open today. The company has fixed a price band of ₹828-837 a share for its offering.
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