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Clean Science and Technology IPO opens today: All you need to know

Specialty chemicals manufacturer Clean Science and Technology will launch its initial public offering (IPO) for subscription on July 7. This will be the second IPO in July 2021 after GR Infraprojects.

Specialty chemicals manufacturer Clean Science and Technology will launch its initial public offering (IPO) for subscription today. This will be the second IPO in July 2021 after GR Infraprojects.
Axis Capital, JM Financial, and Kotak Mahindra Capital are the lead managers for the offer, while Link Intime India Pvt. Ltd is the registrar.
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Here are key things to know about the issue:
  1. The public issue will open for subscription from July 7-9. Anchor investors' book will open for a day on July 6. The price band for the issue is Rs 880-900 per share.
  2. The issue is a complete offer for sale (OFS) of 17,575,245 – 17,184,682 shares by existing selling shareholders including promoters Ashok Ramnarayan Boob, Krishnakumar Ramnarayan Boob, Siddhartha Ashok Sikchi, and Parth Ashok Maheshwari.
  3. The company plans to raise Rs 1,546.62 crore through the public issue. The proceeding from the issue will go to selling shareholders. The IPO market lot size is 16 shares. A retail-individual investor can apply for up to 13 lots.
  4. The company has reserved up to 50 percent of the offer for qualified institutional buyers, 35 percent for retail investors, and 15 percent for non-institutional buyers.
  5. The post-issue implied market cap will be Rs 9,347 crore to Rs 9,560 crore. The shares are expected to list on BSE and NSE on July 19.
  6. About Clean Science and Technology
    Clean Science and Technology is one of the few global companies solely dedicated to the development of newer technologies using in-house catalytic processes that are both eco-friendly and cost-effective.
    It manufactures functionally critical specialty chemicals, FMCG Chemicals, and Pharmaceutical Intermediates.
    Within 17 years of incorporation, the company has grown to the largest manufacturer globally of monomethyl ether of hydroquinone (MEHQ), BHA, Anisole, and 4-Methoxy Acetophenone, in terms of manufacturing capacities.
    The company has two production facilities at Kurkumbh (Maharashtra) with an aggregated installed production capacity of 29,900 MTPA as of Dec 31, 2020.
    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.
    Strengths
    • Track record of strategic process innovation through consistent R&D initiatives
    • Among the largest producers globally of functionally critical specialty chemicals used across various industries and geographies resulting in a de-risked business model
    • Experienced Promoters and senior management with extensive domain knowledge
    • Strong and long-standing relationships with key customers
    • Automated manufacturing facilities with proven design and commercialization capabilities and a strong focus on EHS
    • Strong and consistent financial performance in the last three fiscals
    • Financials
      In fiscal 2021, revenue from operations for sales outside India represented 67.86 percent of their total revenue from operations. The total revenue from operations has grown at a CAGR of 14.15 percent between FY19 and FY21. The profit margin in FY21 was 38.71 percent, FY20 was 33.30 percent, and 24.83 percent in FY19.
      Promoters and Management
      • Pradeep Ramwilas Rathi is the Chairman and Non-Executive Director of the company.
      • Ashok Ramnarayan Boob is the Promoter and Managing Director of the company.
      • Siddhartha Ashok Sikchi and Krishnakumar Ramnarayan Boob are the Promoters and Wholetime Directors.
      • Sanjay Kothari is the Non-Executive Director, while Ganapati Dadasaheb Yadav is the Non-Executive, Independent Director of the company.
      • Keval Navinchandra Doshi and Madhu Dubhashi are also Non-Executive, Independent Directors.
      • Saboo Krishnakumar Satyanarain is the President of the company, while Parth Ashok Maheshwari is the Promoter and Vice President.
      • Pratik Abhaykumar Bora is the Chief Financial Officer. Mahesh Arvind Kulkarni is the Company Secretary and Compliance Officer.