The initial public offering of Clean Science and Technology is oversubscribed by 93.41 times on July 9, the final day of bidding, supported by strong buying interest from investors.
The offer has received bids for 114.92 crore equity shares against the IPO size of 1.23 crore equity shares, the subscription data available on exchanges showed.
The qualified institutional buyers have put in bids 156.37 times their reserved portion and non-institutional investors 206.43 times, while the portion set aside for retail investors is subscribed 9.00 times.
The Rs 1,546.62-crore public issue of specialty chemical company Clean Science opened for subscription on July 7, comprising a complete offer for sale by existing shareholders. The company has already mobilised Rs 464 crore from anchor investors on July 6, at higher end of the price band of Rs 880-900 per equity share.
The issue has received a subscribe rating from all brokerage houses. "Given Clean Science's financial performance, industry leading returns ratios and favourable outlook for the industry, we recommend 'subscribe' to the issue," said Angel Broking.
Its revenue has grown at CAGR of 9.1 percent over FY19-21 on the back of strong 22 percent topline growth in FY21 despite the Covid-19 crisis. Moreover the company has posted strong EBITDA and PAT CAGR of 23.6 percent and 26.3 percent respectively during the same period.
Given strong financial performance, industry leading margins and returns ratios, Clean Science should be able to command a premium to peers, Angel Broking feels.
The brokerage believes that the India specialty chemical industry is going to be one of the biggest beneficiaries of shifting of supply chains post the Covid-19 pandemic.
Clean Science is a globally focused entirely on developing newer technologies using in-house catalytic. It manufactures functionally critical specialty chemicals such as performance chemicals (MEHQ, BHA and AP), pharmaceutical intermediates (i.e., Guaiacol and DCC), and FMCG chemicals (i.e., 4-MAP and Anisole).
Within 17 years of incorporation, it has grown to be the largest manufacturer globally of MEHQ, BHA, Anisole and 4-MAP, in terms of installed manufacturing capacities.
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