The share allocation in Clean Science and Technology IPO is likely to be finalised today. The initial public offer of speciality chemical manufacturer was subscribed a whopping 93.41 times, led by huge demand from qualified institutional Buyers and non-institutional investors. The retail investor segment was subscribed nine times. Link Intime India Private Ltd is the registrar of the IPO and once finalized, investors can check share allotment on Link Intime website.
Investors can also check their Clean Science share allotment status on BSE website.
According to brokerages, Clean Science and Technology IPO is likely to get listed on July 19th.
The ₹1,550-crore Clean Science and Technology IPO was an entirely an offer for sale (OFS) by existing promoters and other shareholders. Prior to the opening of IPO, Clean Science had raised ₹464 crore from anchor investors. The company had fixed a price band of ₹880-900 a share.
The Pune-based company, which was incorporated in the year 2003, is a fine and specialty chemical manufacturing company, and claims to be the largest manufacturer globally of certain specialty chemicals.
Many brokerages had recommended subscribe to the issue, saying that the company is well positioned to capitalize on opportunities in specialty chemical sector backed by its process innovation, catalyst development, significant scale of operations & strategic backward integration.
“At the upper price band of Rs.900, Clean Science and Technology is available at a P/E of 48x (FY21) which appears to be fully priced in. However, we assign a “Subscribe” rating for the issue on a long-term basis considering its technical expertise, process innovation, consistent focus on R&D, positive industry outlook, superior margin profile and healthy return ratios,” Geojit said.
Revenue and PAT of Clean Science and Technology grew at a CAGR of 14% and 43% over FY19-FY21 backed by increase in exports, rise in demand for specialty chemicals and better operating performance, the brokerage said, adding that the company enjoys superior EBITDA margins (51%) and PAT Margins (39%) in FY21 led by economies of scale, competitive pricing, in-house capabilities, and adoption of cost optimisation techniques.
“The company has a healthy balance sheet with D/E ratio of 0.1x as of FY21. Moreover, the return ratios RoE and RoCE remain healthy at 38% and 26% (3-year average),” Geojit added.
Clean Science and Technology IPO was managed by Kotak Mahindra Capital Company Limited, Axis Capital Limited, and JM Financial Limited.
The share allocation in GR Infra IPO is likely to be also finalised tomorrow.
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