Clean Science and Technology IPO subscribed 1.68 times on day 1
The offer has received bids for 2.07 crore equity shares against IPO size of 1.23 crore equity shares, the subscription data available on the exchanges showed.
The reserved portion of non-institutional investors has been subscribed 2.15 times, retail investors (2.45 times), while qualified institutional buyers have put in bids for 18,224 equity shares against their reserved portion of 35.15 lakh shares.
The offer size has been reduced to 1.23 crore equity shares from 1.718 crore equity shares on completing fundraising from anchor investors on July 6. Clean Science garnered Rs 463.98 crore by issuing 51,55,404 equity shares at a price of Rs 900 per share.
The Rs 1,546.6-crore public issue, a complete offer for sale, will close for subscription on July 9. The price band for the offer has been fixed at Rs 880-900 per equity share.
The key objective of the issue is to increase visibility through listing and generate liquidity for the promoter group.
“The IPO is valued at 48.2x FY21 EPS which we believe is reasonable when compared to the valuations of several of the specialty chemical companies in the listed universe,” said Aditya Birla Capital which assigned subscribe rating on the issue.
The specialty chemicals industry in India is on an upswing on the back of several favourable factors such as ‘China + 1’ sourcing strategies adopted by several MNCs; reduced production in China on the back of strict environment & pollution norms on the chemical industry; increasing manufacturing base of several end-user industries in India; favourable government policies such as the production linked scheme (PLI) scheme; dedicated chemical parks and protection through anti-dumping duties on imports especially from China.
Clean Science & Technology manufacturers functionally critical specialty chemicals such as performance chemicals, pharma intermediates & FMCG chemicals. It has two plants at Kurkumbh (Pune, Maharashtra) with 11 production lines & a cumulative capacity of 29,900 MTPA.
It is the largest manufacturer globally of MEHQ, BHA, Anisole & 4-MAP in terms of manufacturing capacities with dedicated production lines for key products.
Clean Science is the leading manufacturer in several of its products using internally developed processes and catalysts. “It has joined the sustainable chemistry bandwagon by eliminating the wastes and discharges from its manufacturing facilities. It enjoys healthy return ratios and margins through creation of strong entry barriers,” said Aditya Birla Capital.