The initial public offer (IPO) of speciality chemical manufacturer Clean Science and Technology is in progress through which the company plans to raise Rs 1,546.62 crore. The public issue is entirely an offer for sale (OFS) by existing promoters and other shareholders.
The issue opened on July 7 and will conclude on July 9.
Shares are being offered in the IPO in a price band of Rs 880-900 per share.
50% of the issue has been reserved for qualified institutional buyers, up to 35 per cent for retail investors, and the remaining 15 per cent for non-institutional buyers.
The allotment of shares will be done on July 14. The stock is likely to make its market debut on July 19.
One can apply in the IPO for a minimum of 16 shares of one lot by spending Rs 14,400.
A maximum of 208 shares comprising 13 lots can be bid for during the IPO by spending Rs 1,87,200.
On Tuesday, the firm raised Rs 464 crore from anchor investors.
The company decided to allocate 51,55,404 equity shares to anchor investors at Rs 900 apiece, which was the upper end of the price band, aggregating to Rs 464 crore.
Those offering shares in the OFS include Anantroop Financial Advisory Services; Ashok Ramnarayan Boob; Krishnakumar Ramnarayan Boob; Siddhartha Ashok Sikchi; and Parth Ashok Maheshwari.
Axis Capital, JM Financial and Kotak Mahindra Capital are the merchant bankers to the issue.
Clean Science Technology manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates and FMCG chemicals.
Motilal Oswal has given a subscribe call to the IPO. “We like Clean Science Technology given its global leadership in green chemicals, diversified product portfolio, robust financials with industry leading margins/return ratios and strong focus on ESG front. It is well placed to tap opportunity in the fast growing specialty chemical space especially green chemicals, by leveraging its strong R&D capabilities and expanding product portfolio.
The issue is reasonably valued at 48.2x FY21 P/E on post issue basis (avg. peer FY21 P/E of 60x), while it enjoys higher RoE of 45% (average peer RoE of 18%). We believe that the market would like to give premium valuation to such emerging niche stories. We recommend Subscribe,” the financial services firm said.
Marwadi Financial Services said in a note,” The company is going to list at a PE of 48.18X with a market cap of Rs.95,597 million, while its peers namely Vinati Organics and Fine Organics are trading at 77.4X and 75.1X times respectively. We recommend to “Subscribe” this IPO as company is amongst the largest producers globally of functionally critical specialty chemicals and is available at favorable valuation as compared to its peers.”
