Clean Science & Technology Ltd IPO

Current

IPO Synopsis

The offer is fully comprised of an offer for sale of shares aggregating up to ₹1,546.62 crores at       
the upper price band. The proceeds would go directly to such selling shareholders. The objective of offer is to provide the company with the benefits of listing on the exchanges

About Clean Science & Technology Ltd

Clean Science and Technology Limited manufactures functionally critical specialty chemicals such as Performance Chemicals, Pharmaceutical Intermediates, and FMCG Chemicals. The company was incorporated in 2003, and 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 is among the few companies globally which is focused entirely on developing newer technologies using in-house catalytic processes that 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 globally.

Key Points

Competitive Strengths:

Strategic process innovation through consistent R&D Initiatives: 
Clean Science and Technology Limited is among the leading companies in India to have commercialized use of environment-friendly processes to manufacture certain specialty chemicals. This was possible by optimizing the use of conventional raw materials, improving atom economy, enhancing yields, reducing effluent discharge, and consequently increasing cost competitiveness. This process at such a large scale is difficult to replicate and creates a significant barrier for new entrants. 

One of the largest producers globally of certain critical specialty chemicals used across industries:
Clean Science and Technology Limited is amongst the largest producer of certain speciality chemicals in terms of manufacturing capacities as of FY21. The company’s products are used as polymerization inhibitors, intermediates for agrochemicals and pharmaceuticals, anti-oxidants, UV blockers, and anti-retroviral reagents, which are functionally critical in a wide range of industries, including in the manufacture of paints and inks, agro-chemicals, pharmaceuticals, flavors and fragrance, food and animal nutrition, and personal care products.

Strong and long-term relationships with key customers:
The company’s ability to meet the demand along with quality at competitive prices has resulted strong and long-standing relationship with various multinational corporations. Revenue generated from the top 10 cus-tomers represented 47.9% of the revenue from operations as of FY21. The company’s long-term relationships and ongoing active engagements with customers also allow them to plan their capital expenditure, enhance the company’s ability to benefit from increasing economies of scale with stronger purchasing power for raw mate-rials and a lower cost base.

Risks:

  • Operations are dependent on R&D capabilities and their inability to continue to design catalytic processes may adversely affect their business.
  • None of catalytic processes are patented and the intellectual property may not be adequately protected.    
  • Significant portion of their revenue comes from certain key customers and loss of one or more of such customers can have an adverse impact on their operations.


 

How to Apply for an IPO?

  • Login to your 5paisa account and select the issue in the current IPO section

    Login to your 5paisa account and select the issue in the current IPO section

  • Enter the number of lots and price at which you wish to apply for

    Enter the number of lots and price at which you wish to apply for

  • Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

    Enter your UPI ID and click on submit. With this, your bid will be placed with the exchange

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

  • You will receive a mandate notification to block funds in your UPI app

    You will receive a mandate notification to block funds in your UPI app

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Frequently Asked Questions

An Initial Public Offering OR IPO is the process of issuing stock for sale for the first time by a private corporation to the public. A company can issue its stock for sale for the first time to raise money by issuing either debt or equity. In case, the company chooses the equity route, the first such offering of equity shares to the public via listing of the shares in the stock markets is called an IPO.

 

This is one of the processes that has to do with the pricing of the IPO. An IPO can be made either through book building method, the fixed price method or a combination of both.

While in book building the price at which securities will be offered/allotted is not known in advance to the investor (investor is aware of an indicative price range only), in the fixed price process price at which the securities are offered/allotted is known in advance to the investor.

When it comes to an IPO, there are 4 types of investors who can bid, as per SEBI guidelines. They are –

  1. Qualified institutional investors (QIIs)
  2. Anchor investors
  3. Retail investors and
  4. High net-worth individuals (HNIs)/Non-institutional investors (NII).

 

IPO subscription period is the period of time during which investors can promise to purchase shares of a security to be issued as initial public offering (IPO).

Check: IPO Application Process

For details about the new IPO application process, click here.

To apply in an IPO with 5paisa:

  • Login to the 5paisa website or mobile trading app
  • Go to the Current IPOs section
  • Select the IPO you wish to apply for
  • Enter IPO details like price, quantity (lots) and your UPI ID
  • Check details and Confirm
  • Approve the UPI notification received on your phone (in BHIM App or your net banking app)

A Red Herring Prospectus, or offer document, is filed by a company to SEBI. This document is very useful to as it provides detailed information about the company’s business operations, financials, promoters and the company’s objective for raising funds.

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