Clean Science and Technology's share sale via initial public offering (IPO) began today, July 7, 2020. The company is selling its shares in the price band of Rs 880-900 and plans to raise Rs 1,546 crore from the issue. The three-day share sale which began today will end on July 9 and investors can bid for Clean Science shares in lot sizes of 16 shares and in multiples thereafter. The issue is purely an offer for sale wherein some existing investors are selling their stake via IPO.
Clean Science and Technology's share sale via initial public offering (IPO) began today, July 7, 2020. The company is selling its shares in the price band of Rs 880-900 and plans to raise Rs 1,546 crore from the issue. The three-day share sale which began today will end on July 9 and investors can bid for Clean Science shares in lot sizes of 16 shares and in multiples thereafter. The issue is purely an offer for sale wherein some existing investors are selling their stake via IPO.
Clean Science and Technology is among the few companies globally focused entirely on developing newer technologies using in-house catalytic processes, which are eco-friendly and cost competitive. This has enabled the company to emerge as the largest manufacturer globally of certain specialty chemicals in terms of installed manufacturing capacities
The company manufacture functionally critical specialty chemicals such as Performance Chemicals (i.e. MEHQ, BHA and AP), Pharmaceutical Intermediates (i.e. Guaiacol and DCC), and FMCG Chemicals (i.e. 4-MAP and Anisole). Within 17 years of incorporation, the company have grown to be the largest manufacturer globally of MEHQ, BHA, Anisole and 4-MAP, in terms of installed manufacturing capacities as of March 31, 2021, Clean Science said in its red herring prospectus.
Brokerage firm Anand Rathi has a 'subscribe' rating for Clean Science and Technology's IPO. "The company possesses a healthy balance sheet and robust return ratio profile. We recommend a 'subscribe' rating to this IPO," Anand Rathi said in a note. .
"At the upper end of the IPO price band, the company is being offered at 48.2 times its FY21 earnings, with a market cap of Rs 9,559.7 crore. In comparison, Vinati Organics trades at 77.4 times its FY2021 earnings per share (EPS) of Rs 26.2, Fine Organics Industries trades at 75 times its FY2021 EPS, Atul trades at 42.2 times its FY2021 EPS of Rs 221.6, SRF trades at 37 times its FY2021 EPS of Rs 202.2, Navin Fluorine International trades at 76.1 times its FY2021 EPS of Rs 49.9 and PI Industries trades at 62.2 times its FY2021 EPS of Rs 48.7. Further on FY21 earnings basis the company is trading below the industry average of 55.4 times," Anand Rathi added.
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