Clean Science makes robust debut, lists at 98% premium over issue price

The stock listed at Rs 1,784, a 98 per cent premium against the issue price of Rs 900 per share on the BSE

Clean Science and Technology made a robust debut on the bourses on Monday as its shares listed at Rs 1,784 on the BSE, a 98 per cent premium against the issue price of Rs 900 per share.

However, post listing, the stock declined up to Rs 1,555 levels on the BSE amid profit booking. At 10:05 am, it was quoting at Rs 1,606, up 78 per cent against its issue price. Around 667,000 equity shares had changed hands on the counter on the BSE till the time of writing of this report, exchange data shows.

The Rs 1,500 crore initial public offer (IPO) of Clean Science and Technology had received a strong response from the investors and was subscribed 93.41 times. The portion set aside for qualified institutional buyers was subscribed 156.37 times while that of non-institutional investors was subscribed 206.434 times. Retail investors put in bids 9.0 times their portion.

The prime purpose of the issue was to enhance visibility, brand, provide liquidity to existing shareholders and achieve the benefits of listing shares on stock exchanges. Clean Science is among the few companies globally, focused entirely on developing newer technologies using in-house catalytic processes, enabling it to emerge as the largest global manufacturer of certain specialty chemicals in terms of installed capacities as of March 31, 2021.

On the back of the company’s robust financial position, leadership in market share in some of its products, strong clientele and prospects of the chemical industry, most analysts had given a "subscribe" rating to the issue. The company is the leading manufacturer in several of its products using internally developed processes and catalysts. It has joined the sustainable chemistry bandwagon by eliminating the wastes and discharges from its manufacturing facilities. It enjoys healthy return ratios and margins through the creation of strong entry barriers.

"Further, strong growth prospects for domestic specialty chemical manufacturers on the back of China+ One strategy may eventually aid Clean Science and Technology to sustain strong earnings momentum, going forward," Reliance Securities said in a IPO note.