Clean Science IPO shares list at Rs 1,784.4, a 98% premium over issue price
Specialty chemicals company Clean Science & Technology share price opened with a massive 98 percent premium on July 19. Experts were positive about the company’s issue given its robust financials with industry-leading return ratios, diversified product portfolio, strong focus on environmental, social, and corporate governance (ESG) front, consistent R&D initiatives, and strong client base.
The stock price started off at Rs 1,784.40, higher by Rs 884.40 or 98.27 percent over the issue price of Rs 837 on the BSE.
At 10:03 hours IST, it was quoting at Rs 1,606.85, up Rs 706.85 or 78.54 percent over issue price, with volume of 6.38 lakh equity shares.
Clean Science manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates, and FMCG chemicals. It is the only company globally to deploy vapour-phase technology for manufacturing Anisole from phenol with better atom economy and only water as effluent compared to liquid phase manufacturing process.
The company’s customers comprise direct end-use manufacturers as well as institutional distributors. A majority of company’s revenues are generated from direct sales to customers. Certain of the company’s key customers include Bayer AG and SRF for agrochemical products, Gennex Laboratories for pharmaceutical intermediates, and Vinati Organics for specialty monomer products, Nutriad International NV for animal nutrition.
The company had mobilised Rs 1,546.62 crore through its public issue during July 7-9. These funds will go to selling shareholders as it was an offer for sale issue.
Clean Science registered revenue growth at a CAGR of 28 percent, EBITDA (earnings before interest, tax, depreciation and amortisation) 52 percent, and profit 60 percent during FY18-FY21. The margin expanded to 50.5 percent from 30.2 percent in the same period.