Clean Science IPO is getting launched for subscription today on Wednesday 07, July 2021, and will be available for subscription till Friday, July 09, 2021.
The company is looking to raise Rs.1,546 crore through public issue which will be entirely an offer-for-sale (OFS) of up to 1.72 crore equity shares by existing promoters and shareholders and does not involve a fresh issue.
The equity shares of Clean Science and technology Ltd. are proposed to be listed on both BSE and NSE.
The Clean Science IPO issue will be sold in the price band of Rs 880-900 per share and the minimum lot quantity is 16 shares and in multiples thereof translating to a minimum investment of Rs 14,400 at upper end.
The latest Grey market premium price (GMP) for Clean Science IPO were seen up by more than 56% and were trading around Rs.500-520 as of today, This means people are expecting it to open on listing day to be at least at Rs.1400 or more.
Having said that GMP does not mean in anyway a recommendation for an IPO, the financials of a company and its future prospectus tells a lot.
Here is the thing no one can tell you whether the IPO will going to make a stellar debut or not, it is you who have to decide based on available information about the company.
Moreover the IPO’s now a days are very hot market every one wants to earn some quick money on listing day itself and there is nothing wrong about it.
One must not forget to check the financials and do not fall for any recommendation from anyone, it is you hard earned money, you should decide whether to opt for the IPO or not.
You may have watch various YouTube channels or read on different websites about recommendation for stocks and IPO, it is my humble suggestion and request please do not ever fall prey to it. Better than this is to invest in ETF’s?.
Therefore, whenever you are buying IPO make sure the money invested is not the one which you my need it urgently, always use extra money which you may not require in near future, Otherwise stay away completely.
Now, coming back to the Clean Science IPO let us talk about in brief about the company and its financials and other details step by step.
About Clean Science and Technology (CSTL):
Incorporated in 2003, Clean Science and Technology Limited is among the few companies globally focused entirely on developing newer technologies using in-house catalytic processes, which are eco-friendly and cost competitive.
This has enabled the company to emerge as the largest manufacturer globally of certain specialty chemicals in terms of installed manufacturing capacities as of March 31, 2021 .
Some of these technologies have been developed and commercialized for the first time across the globe. The company manufactures functionally critical specialty chemicals such as Performance Chemicals (MEHQ, BHA and AP); Pharmaceutical Intermediates (Guaiacol and DCC); and FMCG Chemicals (4-MAP and Anisole).
Within 17 years of incorporation, the company has grown to be the largest manufacturer globally of MEHQ, BHA, Anisole and 4-MAP, in terms of installed manufacturing capacities as of March 31, 2021.
The company’s specialty chemicals has a wide range of applications that cater to a diverse base of customers across industries. Its customers include manufacturers and distributors in India as well as other regulated international markets, including China, Europe, the United States of America, Taiwan, Korea, and Japan.
The company’s products are used as key starting level materials, as inhibitors or additives, for products sold in regulated markets. Key customers include Bayer AG, SRF Limited, Gennex Laboratories Limited, Nutriad International NV and Vinati Organics Limited.
The company has two certified production facilities in India strategically located at Kurkumbh (Maharashtra), in close proximity to the JNPT port from where it exports a majority of their products.
Each facility has an on-site R&D unit, quality control department, warehouse, and effluent treatment system that treats effluents, to make the facilities zero-liquid-discharge facilities.
Financials Of Clean Science and Technology (CSTL):
Clean Science’s revenue grew at an annualised rate of 14.2% between FY19and FY21. Its profit after tax witnessed a CAGR of 42.5% during the period. The company’s Ebitda margin stood at 38.7% in FY21.
In 2020-21, revenue from Clean Science’s top 10 customers amounted to Rs 245.46 crore, with Rs 68.04 crore coming from its largest customer.
That’s 13.28% of its top line. The company derives a significant portion of its revenue from operations from China, India, Europe, and the Americas.
With sustainability in gross margins along with better working capital management and operating leverage likely to play out, it can aid FCF (Free cash flow) considerably.
In turn, this would help the company to incur capex from internal accruals. Since newer businesses should have better/similar RoCE, incremental cash can sustain group RoCE and thereby help it to demand better valuations ahead.
Clean Science and Technology Peers Comparison:
The company is going to list at PE of 48.18X with a market cap of Rs.95,597 million, while its peers namely Vinati Organics and Fine Organics are trading at 77.4X and 75.1X times respectively.
At 900, the stock is available at 48.2x FY21, one can definitely subscribe it for long term as the company is amongst the largest producers globally of functionally critical specialty chemicals and is available at favorable valuation as compared to its peers.
Clean Science IPO Details:
Clean Science will sell shares at Rs 880-900 per share in its 3 day initial public offering starting on July 07 to July 09, 2021.
The shares of Clean Science IPO will be allotted on 14 July 2021, The tentative date of CSTL IPO listing is around July 19, 2021.
Clean Science and technology Objects of the Offer:
To achieve the benefits of listing the equity shares on the stock exchanges and for the offer for sale.
Clean Science and technology Issue break-up:
- QIB – 50% of the offer – ₹ 773.31 crores
- NIB – 15% of the offer – ₹ 231.99 crores
- RET – 35% of the offer – ₹ 541.32 crores
Shareholding Pattern (%) of Clean Science and technology Ltd:
Pre IPO:
Promoter – 94.7%
Public – 5.3%
Total – 100.0%
Post IPO:
Promoter – 78.5%
Public – 21.5%
Total – 100.0%
GR InfraProjects IPO Review checkout here
Frequently Asked Question (FAQ):
1.What Is The Symbol For Clean Science and Technology ?
Ans: The Symbol is CLEAN
2.When Clean Science IPO Coming?
Ans: The Issue Period for Clean Science IPO is 07-July-2021 to 09-July-2021.
3. Post Modification Period For Clean Science IPO?
Ans: The Post issue Modification Period for IPO is 12-July-2021 (10.00 A.M. to 11.00 A.M.).
4. What Is The Cut-off Time Period For UPI Mandate For Clean Science IPO?
Ans: The Cut-off time for UPI Mandate Confirmation is 12-July-2021 (upto 12:00 PM).
5. What Is The Issue Type For Clean Science IPO?
Ans: The Issue Type is 100% Book Building.
6.What Is The Price Band For Clean Science IPO?
Ans: The Price (Band) Range for Clean Science is Rs.880 to Rs.900 per equity share.
7. What Is The Lot Size For Clean Science IPO?
Ans: The Bid Lot i.e. Minimum Order Quantity (lot size) for Clean Science IPO is of 16 Equity Shares and in multiples thereof 16 Equity Shares.
8. Who Are The Book Running Lead Managers For Clean Science IPO?
Ans: The Book Running Lead Managers are, Kotak Mahindra Capital Company Limited, Axis Capital Limited and JM Financial Limited
9. What Is The Face Value For Clean Science IPO?
Ans: The Face Value is of Rs.1 whereas The Tick Size is of Rs.1
10. What Is The IPO Market Timings For Clean Science IPO?
Ans: The IPO Market Timings is 10.00 a.m. to 5.00 p.m.
Apart from above points:
The Maximum Subscription Amount for Retail Investor is Rs. 2,00,000
The Maximum Bid Quantity for QIB Investors is 1,23,02,672 equity shares in multiple of 16 Equity Shares
The Maximum Bid Quantity for NIB Investors is 87,87,616 equity shares in multiple of 16 Equity Shares
The Name of the Registrar is Link Intime India Private Limited
The Contact person name number and Email id is Mr. Shanti Gopalkrishnan, 022 49186200, cleanscience.ipo@linkintime.co.in
The Address of the Registrar is C 101, 247 Park, L.B.S. Marg Vikhroli (West), Mumbai 400 083 Maharashtra, India
Where To Check Clean Science IPO Application And Allotment Status?
As an investor or trader generally we are curious and anxious to know the results of the application as soon as possible. To ease the anxiety, both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) have come up with dedicated pages and links which investors can use.
NSE
The NSE has an IPO bid verification module. It can be used to verify the IPO application details uploaded on the exchange bidding system by your member/bank. The data of the bid details uploaded by the member/bank would be available on T+1 day (where T would be date receipt of bid on NSE platform).
In addition, the data would be available until six days after the issue closure date. This gives the investor enough time to verify the data and instruct the member/bank to make any changes, if required.
Exchange will also provide allotment information as provided by the registrar to the issue.
An investor can avail this facility by registering using his/her PAN details. After registration, the investor will receive an email notification from NSE on the registered email address. That email will provide the login details.
The following link can be used for the same:
https://www.nseindia.com/products/dynaContent/equities/ipos/ipo_login.jsp
BSE
The BSE has also come up with a similar platform.
This unique facility allows investors to verify the status of their application submitted to a Trading Member or a SCSB (Self-Certified Schedule Banks).
The investor can check his application status/information on the website until one week after issue close.
The following link can be used by investors:
https://www.bseindia.com/investors/appli_check.aspx
Important Things To Keep In Mind Before Applying For IPO’s:
- Try to fill for the same IPO online from different DP ID i.e. if in your family have more than 1 account you can possibly get the allocation done in case of over subscription.
- You should have a good knowledge of the sector and the company you are planning to invest.
- Analysis of the company’s balance sheet is very crucial. A clear understanding of the company’s future projects and vision is very necessary to know whether it will have a sustainable future.
- Investment decision has to be taken carefully and not in a hurry.
- Read as much as you can about the company, its objectives for launching the IPO, its past history in business and its futures prospectus.
- Don’t go for hype in the news, your analysis should be based on facts rather than gossips and rumors.
- Many IPOs are oversubscribed. What this means is that the demand for shares is much higher than the shares available for sale. In such a situation, it is no surprise that many investors fail to get any shares allotted to them. This is why it is advisable to apply for IPO shares on the last day of bidding. This way, one can have a good estimate on how large the subscription will be. Also, in that case, one should bid for just one lot and not unnecessarily lock up their capital.
Conclusion:
The differentiation in the process manufacturing between Clean science and peers assisted company to offer products at competitive price and thereby helped it gain meaningful market share across its product portfolio.
Going ahead, it plans to expand overall capacity of existing products, which should translate into improvement in the market share further.
Moreover, it also plans to set up a fourth unit, which could have asset turn in the similar range of present business segments with decent OPM visibility.
The management has not outlined any capex details yet. Thus, any announcement can improve revenue visibility further.
Let us checkout some of the strengths and risk factors for CSTL Ltd.
Some of the qualitative factors and strengths of Clean Science and technology Ltd
- Leverage R&D capabilities and understanding of catalysis to develop new product portfolio
- Expansion of manufacturing capacity for existing products
- Strong and long-standing relationships with key customers
Some of the Risk Factor for Clean Science and technology Ltd
- Lower growth visibility for MEHQ to impede overall growth
- Significant portion of revenues from limited market remains the key business risk
- Loss of customer would impede financial performance
Therefore, it is always advisable to go through CSTL IPO – RHP to know in detail about the company.
The only thing which should be bothering you is the research you did before applying for the IPO. Investing in IPO is risky as well as profitable.
Having said that you also need to keep in mind important things mentioned above before applying to IPO’s as the risk is always involved.
For More Information Do Checkout Basics of IPO and FAQ Here.
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Note: Please do your own research and make investment. Moneycontain will not be responsible for any of your losses at all. The point made is for educational purpose only and intended to give information.
All investments are subject to risks, which should be considered prior to making any investments. The above details are compiled from information available on public platforms. These are not buy or sell recommendations.
