{"id":793,"date":"2021-07-05T07:35:41","date_gmt":"2021-07-05T07:35:41","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=793"},"modified":"2021-07-05T07:53:52","modified_gmt":"2021-07-05T07:53:52","slug":"clean-science-and-technology-ltd-will-hit-the-primary-market-on-july-07-should-you-subscribe","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/clean-science-and-technology-ltd-will-hit-the-primary-market-on-july-07-should-you-subscribe\/","title":{"rendered":"Clean Science and Technology Ltd. will hit the primary market on July 07. Should you subscribe?"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>Indian specialty chemical industry has been an outperformer this year and rising trend in chemical industry has given premium valuations to specialty chemical companies. Clean Science and Technology, a leading manufacturer of performance chemicals (i.e. MEHQ, BHA and AP) will open for subscription on July 7. In the month of June, 5 IPOs had kept investors busy. This month Clean Science and technology is the second IPO after G R Infraprojects.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list\"><li><a href=\"#Clean_Science_and_Technology_IPO_Details\" title=\"Clean\nScience and Technology IPO Details:\">Clean\nScience and Technology IPO Details:<\/a><\/li><li><a href=\"#Composition_of_Issue_Size\" title=\"Composition\nof Issue Size\">Composition\nof Issue Size<\/a><\/li><li><a href=\"#About_the_Company\" title=\"About the\nCompany\">About the\nCompany<\/a><\/li><li><a href=\"#Industry_Growth_Drivers\" title=\"Industry\nGrowth Drivers\">Industry\nGrowth Drivers<\/a><\/li><li><a href=\"#Peers_Comparison\" title=\"Peers\nComparison&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; \">Peers\nComparison&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/a><\/li><li><a href=\"#Financials\" title=\"Financials\">Financials<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Clean\nScience and Technology IPO Details:<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Issuer Company: Clean Science and Technology\nLtd.<\/li><li>Industry: &nbsp;Specialty Chemicals<\/li><li>IPO Size: 1,546.62 cr.<\/li><li>Price Band: 880-900<\/li><li>Issue Open Date: 7 July, 21<\/li><li>Issue Close Date: 9 July, 21<\/li><li>Listing Date: 19 July, 21<\/li><li>Minimum Lot Size: 16 shares<\/li><li>Face Value: 1 Rs. Per share<\/li><li>Employee Discount: NA<\/li><li>Retail Allocation: 35%<\/li><li>Listing Exchange: NSE, BSE<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Composition\nof Issue Size<\/strong><\/h2>\n\n\n\n<p>The issue size of 1,546.62 crores is a complete Offer for Sale comprises sale of up to 17.18 million shares by Ashok Ramnarayan Boob, Krishnakumar Ramnarayan Boob, Siddhartha Ashok Sikchi and Parth Ashok Maheshwari.<\/p>\n\n\n\n<p>Must Read: <a href=\"https:\/\/www.invest19.com\/blog\/g-r-infraprojects-will-hit-the-primary-market-on-july-07-should-you-subscribe\/\">G R Infraprojects will hit the primary market on July 07. Should you subscribe?<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>About the\nCompany<\/strong><\/h2>\n\n\n\n<p>Clean Science and Technology is a\nglobally focused entirely on developing newer technologies using in-house\ncatalytic processes, which are eco-friendly and cost competitive. This has\nenabled them to emerge as the largest manufacturer globally of certain\nspecialty chemicals in terms of installed manufacturing capacities as of March\n31, 2021. The company has continued its focus on product identification,\nprocess innovation, catalyst development, significant scale of operations as\nwell as our measures towards strategic backward integration that have all\ncontributed to their success as one of the fastest growing and among the most\nprofitable specialty chemical companies globally. The company\u2019s name was\nchanged to \u2018Clean Science and Technology Private Limited\u2019 in 2006, to reflect\nour vision of focusing on sustainable chemistry led by innovative technology\nand lower effluents. They manufactures functionally critical specialty\nchemicals such as Performance Chemicals (i.e. MEHQ, BHA and AP), Pharmaceutical\nIntermediates (i.e. Guaiacol and DCC), and FMCG Chemicals (i.e. 4-MAP and\nAnisole). Within 17 years of incorporation, we have grown to be the largest\nmanufacturer globally of MEHQ, BHA, Anisole and 4-MAP, in terms of installed\nmanufacturing capacities.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Industry\nGrowth Drivers<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\"><li>Specialty chemicals industry is in a rising\ntrend as the progress trend of population in India and their dependency on FMCG\nand pharmaceuticals is growing faster.<\/li><li>Exports are on the rise as India is becoming a\ncentral manufacturing hub for various specialty chemicals due to increasing\nrestrictions in China to combat pollution.<\/li><li>China used to be the manufacturing hub but shift\nto India due to rising restrictions in China has opened various opportunities\nfor Indian specialty chemicals.<\/li><li>Average labor cost of China is growing at a CAGR\nof 19-20% while a 4-5% CAGR has been recorded in India. This accounts for\nhigher operating margins in domestic companies.<\/li><li>Indian Government has taken a lot of initiatives\nto push specialty chemicals industry such as \u2018Make In India\u2019 program and\n\u2018Productivity Linked Incentives\u2019 Scheme.<\/li><li>100% Foreign Direct Investment (FDI) has been\npermitted by the government to support the production capacities.<\/li><li>India\u2019s specialty chemical industry accounts for\n$70 billion and studies from various institutions believe that $100 billion\nvaluation is not so far. &nbsp;<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Peers\nComparison&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <\/strong><\/h2>\n\n\n\n<p>In the listed space, the company faces tough competition from Rossari\nBiotech, Fine Organics, Camlin Fine Sciences, PI Industries and Navin Fluorine\nLimited.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Financials<\/strong><\/h2>\n\n\n\n<p>The specialty chemical company is a leading manufacturer of Performance Chemicals (i.e. MEHQ, BHA and AP) and generates 62.32% revenues from them. The product portfolio of the company is diversified to Pharmaceutical intermediates and FMCG chemicals too. Bayer AG, Genex Laboratories Limited, Nutriad International NV, SRF Limited, Vinati Organics are a few of its customers. On the financial front, Clean Science and Technology has been able to increase their revenues by 15.3% in last two years. Company has been able to generate 53% EBITDA margins due to higher efficiency while profit after tax is increased by 42.52 in last two years. Company is almost debt-free and doesn\u2019t have any interest obligations. Return on Capital Employed is 73.89% while Return on Equity stood at 36.76%. Company has strong cash flows and continuously spending on fixed assets for capacity expansion to meet the aggregate demand. Considering the upper price band and FY20 Earning Per Share (EPS), the company is demanding a P\/E multiple of 48.2x, much in-line with the listed peers.<\/p>\n\n\n\n<p>Also Read: <a href=\"https:\/\/www.invest19.com\/blog\/why-should-you-stick-to-investing-in-market-leaders-only\/\">Why should you stick to investing in market leaders only?<\/a><\/p>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 2,657<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"793\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">5    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Indian specialty chemical industry has been an outperformer this year and rising trend in chemical industry has given premium valuations to specialty chemical companies. Clean [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/clean-science-and-technology-ltd-will-hit-the-primary-market-on-july-07-should-you-subscribe\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":794,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[70,2,7],"tags":[],"class_list":["post-793","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo","category-stock-market","category-investment"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/793","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=793"}],"version-history":[{"count":2,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/793\/revisions"}],"predecessor-version":[{"id":796,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/793\/revisions\/796"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/794"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=793"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=793"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=793"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}