The share allocation in the IPO of Clean Science and Technology is expected to close today. The specialty chemicals company’s IPO was subscribed a whopping 93.41 times, led by strong demand from qualified institutional buyers and non-institutional investors. The private investor segment was subscribed nine times. Link Intime India Private Ltd is the registrar of the IPO and upon completion, investors will be able to review the stock allotment on Link to intimate website.
Investors can also check their allotment status for Clean Science shares. check BSE website.
According to brokers, Clean Science and Technology’s initial public offering is expected to go public on July 19.
The ₹1,550 crore Clean Science and Technology IPO was an OFS-only offer from existing promoters and other shareholders. Before going public, Clean Science had increased ₹464 crore from anchor investors. The company had a price range of ₹880-900 a share.
Founded in 2003 and based in Pune, the company is a manufacturer of fine and specialty chemicals and claims to be the world’s largest manufacturer of certain specialty chemicals.
Many brokerage firms had recommended underwriting the issue as the company was well positioned to capitalize on opportunities in the specialty chemicals sector, aided by its process innovation, catalyst development, substantial operational size and strategic backward integration.
“In the upper price range of Rs.900, Clean Science and Technology is available at a P / E of 48x (FY21) which is apparently fully priced in. However, we are giving the issue a ‘subscribe’ rating on a long-term basis considering its technical expertise, process innovation, consistent focus on research and development, positive industry outlook, superior margin profile and healthy rate of return, “said Geojit.
Clean Science and Technology’s sales and PAT increased from FY19-FY21 at 14% and 43% CAGR, respectively, supported by an increase in exports, increasing demand for specialty chemicals, and better operational performance, the brokerage firm said, adding that the Companies had superior EBITDA margins (51%) and PAT margins (39%) in FY21, led by economies of scale, competitive pricing, in-house capabilities and the adoption of cost optimization techniques.
“The company has a healthy balance sheet with a D / E ratio of 0.1x as of FY21. Additionally, RoE and RoCE rates of return remain healthy at 38% and 26% (3-year averages),” added Geojit.
Clean Science and Technology’s IPO was managed by Kotak Mahindra Capital Company Limited, Axis Capital Limited, and JM Financial Limited.
The allocation of shares in GR Infra IPO will probably be ready tomorrow too.
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