Axis Capital,
and Kotak Mahindra Capital company are likely to lead the issue as merchant bankers. The company is likely to file its draft red herring prospectus (DRHP) with the market regulator this week. Clean Science did not respond to an email query on its IPO plans.
IPOs of specialty chemicals companies have been lapped up by investors in the recent past. Last year, the issues of Rossari Biotech and Chemcon Speciality Chemicals were subscribed 79 and 149 times respectively. This year, the IPOs of Laxmi Organics and Anupam Rasayan were subscribed 107 times and 44 times. Barring Anupam Rasayan, all other companies posted strong listing day gains.
Analysts said the increased appetite for IPOs from special chemicals makers has been because of India’s improving position in the global market.
Clean Science reported a 73% jump in sales from Rs 243 crore in FY18 to Rs 429 crore in FY40 while its profits more than doubled from Rs 48.9 crore to Rs 139.6 crore. The company has a profit margin of over 25% for the last three years.
The company is focused on developing eco-friendly and sustainable manufacturing processes and has devised multiple novel and clean processes for its products, by working extensively in developing better catalyst systems which work on chemical atom economy to ensure minimal by-products, thus ensuring cost-effective and eco-friendly manufacturing.
The company has multiple manufacturing facilities in Kurkumbh, MIDC Maharashtra that are automated to maintain high levels of accuracy and efficiency.
Clean Science and Technology is known for an established market position and dominant presence in key specialty chemical products, well-diversified clientele, and application of the products largely in industries manufacturing essentials which limits the impact of COVID-19 pandemic. Nearly two third of revenue comes from export
The company has reported a 63% jump in sales from Rs 241 crore to Rs 393 crore in FY19 while its profits were doubled to Rs 97 crore. The company has a superior profit margin of over 24%.
Clean Science Technology’s products are used as key starting level materials, as inhibitors, or as additives, by customers, for products.
