Clean Science & Technology made a strong debut on bourses, opening at a massive 98.3 percent premium over its issue price. On NSE, the scrip got listed at Rs 1,755, up 95 percent. This was ahead of analysts' expectations, as well as grey market premium, which had indicated 60 percent listing gains.
The stock opened at Rs 1,784.40, up Rs 884.40 or 98.27 percent over the issue price of Rs 900 on the BSE. It finally settled at Rs 1,585.2. On the NSE, the counter closed at Rs 1,770.65.
Despite the better-than-expected listing gains, experts advise remaining invested in the stock for the long-term given the company's strong financials and fundamentals, international presence, and leading position in several critical products. However, short-term investors can book profits at current levels, they say.
"The company's fundamentals are good, and I believe the IPO to be a long-term bet. Investors should hold this IPO at least for the next few years as I expect the company to grow significantly as it has a consistent track record of financial performance. Moreover, the company has an international presence with export to several countries i.e. China, the US, Korea, Japan, Taiwan, etc," Gaurav Garg, Head of Research at CapitalVia Global Research told Moneycontrol.
Prashanth Tapse, VP Research at Mehta Equities, also advises investors to hold the stock for the long term, as he is optimistic about the sector and expects robust multi-year export opportunities ex-China as well as local demand in the current 'Vocal to Local' environment.
"The rising 'Make in India' campaign would also add impetus to the emergence of India as a manufacturing hub for the specialty chemicals industry. Hence, Clean Science stands well to get the favourable and supportive industry growth to drive sustainable business as well as profitable growth in the medium to long-term," said Tapse.
Rajnath Yadav, Research Analyst at Choice Broking, also sees Clean Science as a long-term bet but does not see major upside in the short-term given the hefty listing gains.
"We advised Clean Science for long term. The company is a niche chemical player having newer technologies for products manufacturing which will yield benefits in the longer term in terms of strong business growth and profitability. Considering the demanding valuation, we believe short term investors can book profit," said Rajnath Yadav, Research Analyst at Choice Broking.
Astha Jain, Senior Research Analyst at Hem Securities, advises investors to book profit partially and hold the remaining allotment for the long-term.
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