Clean Sciences and Technology’s Rs 1,546 crore initial public offering (IPO) will open for subscription next week. Investors can bid for the issue in a price band of Rs 880-900 per equity share of face value Re 1 each. The IPO will open next week on July 7 and close on July 9 and will be purely an offer for sale (OFS) by existing shareholders, including promoters of the company. Clean Science and Technology manufactures specialty chemicals such as Performance Chemicals, Pharmaceutical Intermediates, and FMCG Chemicals. The firm had received SEBI’s nod last month.
Investors can bid for Clean Sciences’ IPO in a bid lot of 16 shares or multiples thereafter, translating to a minimum investment of Rs 14,400 on the higher end of the issue price. Of the total issue size, 50% of the offer or approximately 85.92 lakh equity shares worth Rs 773 crore is reserved for qualified institutional buyers (QIB). Retail quota is 35% of the total issue or 60.14 lakh equity shares, translating to Rs 541 crore. Non-institutional investors (NII) can bid for 15% of the entire issue or 25.77 lakh equity shares worth Rs 232 crore. Clean Sciences will not receive any funds from the public issue as the IPO is entirely an offer for sale.
Pre-issue, the promoters of the company hold a 29.78% stake in the company. Promoters Ashok Ramnarayan Boob, Krishnakumar Ramnarayan Boob, Siddhartha Ashok Sikchi, and Parth Ashok Maheshwari will trim their shareholding by a total of 2.01%. The promoter group holds a 64.88% stake pre-issue, which will be trimmed by more than 6%. Overall the promoters and the promoter group holds a 94.65% stake in Clean Sciences pre-IPO.
The company made a net profit of Rs 48.9 crore in the financial year 2017-18. This increased to Rs 97.66 crore in the following year and Rs 139.63 crore in the financial year 2019-20. According to Axis Capital, the company’s products are used as polymerization inhibitors, intermediates for agrochemicals and pharmaceuticals, anti-oxidants, UV blockers, and anti-retroviral reagents. On listing, Clean Sciences Technologies will join peers such as Vinati Organics Limited, Fine Organic Industries Limited, Atul, SRF, Navin Fluorine, and PI Industries on the bourses.