Specialty chemical company Clean Science & Technology is set to list its equity shares on the bourses on July 19. Experts largely expect the company to start the day with stellar returns of around 60 percent over their issue price, citing attractive valuations and strong financials. Even the grey market premium showed similar returns.
Apart from financials and valuations, the company's monopoly in many of its products, fundamentals and international presence warrant the listing premium, say experts.
In the grey market, the equity share was available at Rs 1,480-1,520, a massive premium of Rs 580-620 or 64.4-68.9 percent over the final issue price of Rs 900, the IPO Watch and IPO Central data showed.
Since the closing of the issue, the grey market price of the stock has seen a significant upside, taking it to Rs 1,520 levels.
"Considering healthy investor's response to Clean Science IPO, we believe it would list around Rs 1,400 levels, which translates to 56 percent premium over the upper end of the IPO price Rs 900," Prashanth Tapse, VP Research at Mehta Equities told Moneycontrol.
According to Gaurav Garg, Head of Research at CapitalVia Global Research, and Astha Jain, Senior Research Analyst at Hem Securities, Clean Science might see handsome listing gains of more than 60 percent from the issue price.
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Clean Science is among the few companies globally that focuses entirely on developing newer technologies using in-house catalytic processes, which are eco-friendly and cost competitive. This has enabled them to emerge as the largest manufacturer of certain specialty chemicals in terms of manufacturing capacities.
The company manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates which are also widely used in anti-retroviral drugs, and FMCG chemicals.
Clean Science raised Rs 1,546.62 crore through its public issue at Rs 900 per equity share. The offer saw strong subscription of 93.41 times during July 7-9.
As the issue was a complete offer for sale, the proceeds from the offer will go to selling shareholders.
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