Clean Science lists at 98% premium over issue price

NEW DELHI: Clean Science and Technology made a solid debut on Dalal Street on Monday, as the stock got listed at Rs 1,784.40 on BSE, a 98.26 per cent premium to its issue price of Rs 900. On NSE, the scrip got listed at Rs 1,755, up 95 per cent.

The IPO, which was sold between July 7 and 9 -- alongside the issue of GR Infraprojects -- was subscribed 93.41 times. It received total bids for 1,14,92,30,160 shares against 1,23,02,672 shares on offer. The quota reserved for qualified institutional buyers (QIBs) was subscribed 156.37 times, non-institutional investors 206.43 times, and the retail individual investors (RIIs) quota 9 times.

Clean Science and Technology manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates, and FMCG chemicals. The Pune-based company's customers include manufacturers and distributors in India as well as other international markets, including China, Europe, the US, Taiwan, Korea, and Japan.

At the issue price, the stock commanded a PE value of 48.18 times while peers namely Vinati Organics and Fine Organics were trading of 73 times and 40 times, respectively.

Analysts noted that Clean Science is the only company globally to deploy a vapour-phase technology for manufacturing Anisole from phenol with a better atom economy and only water as effluent compared to the liquid phase manufacturing process.

Similarly, the company developed unconventional processes to manufacture certain other specialty chemicals, which has led to the company’s distinguished position as the most cost-competitive producer of critical products, they said.

The company's consolidated revenue grew 14 per cent compounded annually while its Ebitda grew 38 per cent compounded annually over FY19-FY21. Net profit for the same period climbed 43 per cent annually, with Ebitda margin expanding to 38.7 per cent in FY21 from 24.8 per cent in FY19.

The IPO was managed by Kotak Mahindra Capital Company, Axis Capital and JM Financial.