Clean Science IPO shares list at Rs 1,784.4, a 98% premium over issue price

Clean Science IPO shares list at Rs 1,784.4, a 98% premium over issue price

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Specialty chemicals company Clean Science & Technology share price opened with a massive 98 percent premium on July 19. Experts were positive about the company’s issue given its robust financials with industry-leading return ratios, diversified product portfolio, strong focus on environmental, social, and corporate governance (ESG) front, consistent R&D initiatives, and strong client base.

The stock price started off at Rs 1,784.40, higher by Rs 884.40 or 98.27 percent over the issue price of Rs 837 on the BSE.

At 10:03 hours IST, it was quoting at Rs 1,606.85, up Rs 706.85 or 78.54 percent over issue price, with volume of 6.38 lakh equity shares.

Clean Science manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates, and FMCG chemicals. It is the only company globally to deploy vapour-phase technology for manufacturing Anisole from phenol with better atom economy and only water as effluent compared to liquid phase manufacturing process.

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The company’s customers comprise direct end-use manufacturers as well as institutional distributors. A majority of company’s revenues are generated from direct sales to customers. Certain of the company’s key customers include Bayer AG and SRF for agrochemical products, Gennex Laboratories for pharmaceutical intermediates, and Vinati Organics for specialty monomer products, Nutriad International NV for animal nutrition.

The company had mobilised Rs 1,546.62 crore through its public issue during July 7-9. These funds will go to selling shareholders as it was an offer for sale issue.

Clean Science registered revenue growth at a CAGR of 28 percent, EBITDA (earnings before interest, tax, depreciation and amortisation) 52 percent, and profit 60 percent during FY18-FY21. The margin expanded to 50.5 percent from 30.2 percent in the same period.

Missed share allocation in Clean Science IPO? Should you buy post-listing?

Clean Science and Technology Limited (CSTL) made a strong debut on the stock exchanges on Monday as its shares listed at nearly 100% premium of over ₹1,600 per share as compared to its issue price of ₹900 per share. The shares surged as high as over ₹1,770 intra-day on the NSE. The stock closed nearly 10% lower at ₹1,583 apiece. CSTL is one of the leading global specialty chemical manufacturer, focused on developing green chemicals.

The Pune-based company manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates, and FMCG chemicals. The specialty chemical manufacturer had seen an overwhelming subscription of over 93 times, given its leadership in niche green chemicals.

Motilal Oswal Financial Services expects the stock to do well. Green chemicals demand is expected to grow at 10.5% CAGR (F&S report) globally over CY19-25E and CSTL has built well diversified product portfolio in this space to capitalize on this opportunity, he said.

‘‘We like Clean Science given its global leadership in green chemicals, diversified product portfolio, robust financials with industry leading margins/return ratios and strong focus on ESG front. We expect the stock to do well post listing given the huge response in IPO, robust financials and strong demand for cos in clean chemistry," Siddhartha Khemka of Motilal Oswal said.

Clean Science is the only company globally to use vapor phase process for Anisole (used as a key raw material), Khemka said. It also manufactures sulphur-free BHA & sulphur-free DCC. It has grown to be the largest manufacturer globally of MEHQ and BHA and second largest for AP under Performance Chemicals (69% of FY21 revenues) while it is largest for both Anisole/ 4-MAP under FMCG Chemicals (12% of revenues). It is the third largest for Guaiacol and among the largest for DCC under Pharma Intermediates (16% of revenue), he added.

Prior to the IPO, Clean Science and Technology had raised ₹464 crore from anchor investors. Many brokerages had recommended subscribe to the issue, citing long-term growth potential of the company and possibility of listing gains.

S Ranganathan, Head of Research at LKP securities said, “The day clearly belonged to the Primary Market with the twin listings of Clean Science & GR Infra making IPO investors happy with stellar listing gains. Despite indices losing a percentage, the broader markets were seen buzzing around across select pockets like exchanges & depository names even as HDFC group companies witnessed profit-taking today.’’

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Clean Science and Technology makes a stellar debut in stock markets, lists 98% above issue price on BSE

Clean Science and Technology share price: Shares of Clean Science and Technology made a stellar debut on the stock exchanges today listing over 98 per cent higher than their issue price.

The scrip got listed at Rs 1,784.40 apiece on the BSE, thereby registering a gain of 98.27 per cent from its offer price of Rs 900. On the National Stock Exchange (NSE), it opened at Rs 1,755.00, up 95 per cent from the issue price.

However, the stock failed to hold on to its opening gains and slowly gave up some of its intial momentum and touched an intraday low of Rs 1,555.05 on NSE and BSE so far in the day.

At 10:35 am, the scrip was trading at Rs 1,601.85 on the BSE, up 77.98 per cent from the issue price while on NSE it was at Rs 1,613.05.

Over 89 lakh shares of Clean Science and Technology were traded on the NSE during the first 40 minutes of trade, while over 8.32 lakh shares exchanged hands on the BSE, data from the respective stock exchanges showed.

The Rs 1,546.6 crore IPO of Clean Science and Technology met a robust demand during its offer period from July 7-9. The issue was oversubscribed by a whopping 93.41 times.

The Pune-based company is into the specialty chemical segment. It manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates and FMCG chemicals.