About the Company:
Clean Science and Technology Ltd manufactures functionally critical specialty chemicals such as Performance Chemicals (i.e. MEHQ, BHA and AP), Pharmaceutical Intermediates (i.e. Guaiacol and DCC), and FMCG Chemicals (i.e. 4-MAP and Anisole).
Within 17 years of incorporation, we have grown to be the largest manufacturer globally of MEHQ, BHA, Anisole and 4-MAP, in terms manufacturing capacities as of December 31, 2020.
Company’s specialty chemicals have a wide range of applications that cater to a diverse base of customers across industries.
Company is among the few companies globally focused entirely on developing newer technologies using in-house catalytic processes, which are eco-friendly and cost competitive.
This has enabled company to emerge as the largest manufacturer globally of certain specialty chemicals in terms of manufacturing capacities.
Company’s Customers:
Company’s 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.
Key customers include Bayer AG, SRF Ltd, Gennex Laboratories Ltd, Nutriad International NV and Vinati Organics Ltd.
In Fiscal 2020 revenue from operations for sales outside India represented 68.76% of total revenue from operations.
Percentage wise Revenue from India and Globally.
Company’s Manufacturing facilities.
Company has two certified production facilities in India strategically located at Kurkumbh (Maharashtra), in close proximity to the JNPT port from where company exports majority of its products.
Company is also in the process of setting-up a third facility adjacent to the existing facilities at Kurkumbh (Maharashtra), and are in discussions with relevant authorities for acquiring land for the construction of a fourth facility at Kurkumbh (Maharashtra).
Installed Capacity and Capacity Utilization:
Competitors for the Company.
The specialty chemicals industry presents significant entry barriers, including customer validation and approvals, expectation from customers for process innovation and cost reduction, high quality standards and stringent specifications.
From the product testing stage, to the batch procurement phase, to the eventual customer approval stage – acquiring a new end customer could take a few years depending on product complexity.
Company faces competition from both domestic and multinational corporations on the basis of pricing, relationships with customers, product quality, and process innovation.
Management Team:
- Mr. Pradeep Ramwilas Rathi (Designation: Chairman and Non-Executive Director)
- Mr. Ashok Ramnarayan Boob (Designation: Designation: Managing Director)
Objectives of the Issue:
Offer for Sale: (Rs. 1546 cr)
Company will not receive any proceeds from the Offer (the “Offer Proceeds”) and all the Offer Proceeds will be received by the Selling Shareholders.
Positives for the Company:
Significant Scale of Operations.
- Company’s continued focus on product identification, process innovation, catalyst development, significant scale of operations as well as measures towards strategic backward integration have all contributed to our success as one of the fastest growing and among the most profitable specialty chemical companies globally.
Focused on developing newer technologies.
- Company is among the few companies globally focused entirely on developing newer technologies using in-house catalytic processes, which are eco-friendly and cost
competitive. - This has enabled company to emerge as the largest manufacturer globally of certain specialty chemicals in terms of manufacturing capacities as of December 31, 2020. Some of these technologies have been developed and commercialized for the first time globally.
Experienced Promoters.
- Company’s Promoters Ashok Ramnarayan Boob, Siddhartha Ashok Sikchi, both alumni of the Institute of Chemical Technology, Krishnakumar Ramnarayan Boob, and Parth Ashok Maheshwari, are all career-technocrats with a combined experience of over 60 years in the chemicals industry, and company benefit from their collective vision, experience and technical understanding.
Company has very high profit margins.
- Company has grown organically, and its revenues and profitability have consistently increased, to emerge as one of the most profitable specialty chemical companies globally.
- In Fiscal 2018, 2019 and 2020, and the nine months ended December 31, 2019 and 2020, company’s PAT Margin was 20.15%, 24.83%, 33.30%, 34.20%, and 38.37%, respectively.
Leading Manufacturer of functionally critical specialty chemicals.
- Company manufactures functionally critical specialty chemicals such as Performance Chemicals (i.e. MEHQ, BHA and AP), Pharmaceutical Intermediates (i.e. Guaiacol and DCC), and FMCG Chemicals (i.e. 4-MAP and Anisole).
- Within 17 years of incorporation, company has grown to be the largest manufacturer globally of MEHQ, BHA, Anisole and 4-MAP, in terms manufacturing capacities as of December 31, 2020.
Among the largest producers globally of functionally critical specialty chemicals used across various industries and geographies.
Company is among the largest producers globally of certain specialty chemicals in terms of manufacturing capacities as of December 31, 2020, as below:
Financials of the Company:
| (in Crores) | FY 18 | FY 19 | FY 20 | FY 21 |
|---|---|---|---|---|
| Revenue | 247.2 | 404.5 | 430.1 | 538.07 |
| Net Profit | 48.8 | 97.6 | 139.6 | 198.38 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| Clean Science and Technology | 1 | 18.68 | 48.17 | 36.76% | 50.81 |
| Vinati Organics Ltd | 1 | 32.48 | 43.75 | 26.09% | 124.48 |
| Fine Organic Industries Ltd | 5 | 53.75 | 41.53 | 26.63% | 201.86 |
| Atul Ltd | 10 | 224.69 | 31.04 | 21.09% | 1,072.52 |
| Camlin Fine Sciences Ltd | 1 | 2.5 | 54.82 | 6.48 | 37.95 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 7th July 2021 |
| Issue Closes on:. | 9th July 2021 |
| Issue Price | Rs.880- 900 |
| Face Value | Rs.1 |
| Retail Category Allocation | 35% |
| Minimum Lot | 16 Shares |
| Minimum Investment | Rs.14,400 |
| Issue Constitutes | 16.17% |
| Issue Size | Rs. 1546 cr ($209 million) |
| Market Cap | Rs. 9559 cr ($ 1.29 billion) |
| Listing at | NSE & BSE |
| Equity Shares Offered (OFS) | 1,71,84,688 |
| Equity Shares Prior to the Issue | 10,62,18,960 |
| Equity Shares after the issue | 10,62,18,960 |
Also Read : List of Upcoming IPO’s in India.
Important Dates:
| Finalization of Basis of Allotment | on or Before 14th July 2021 |
| Initiation of Refunds | on or Before 15th July 2021 |
| Credit of Equity Shares: | on or Before 16th July 2021 |
| Listing Date: | on or Before 19th July 2021 |
Subscription Details: (Will be Updated)
| (Subscription-Category-Wise (no. of times) Till time : 06:00 PM) | Shares Offered | Day-1 | Day-2 | Day-3 |
|---|---|---|---|---|
| QIB | 35,15,049 | 0.01 | 2.12 | 156.37 |
| NII | 26,36,287 | 2.15 | 4.51 | 206.43 |
| Retail | 61,51,336 | 2.48 | 5.43 | 9.00 |
| Employee | —- | —– | —- | — |
| TOTAL | 1,23,02,672 | 1.70 | 4.28 | 93.41 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 18.68 | 48.17 | 36.76% | 50.81 |
| Check IPO Allotment Status: |
|---|
Link InTime Website: https://linkintime.co.in/PublicIssue/BSE IPO Website: https://www.bseindia.com/IPO/Allotment |
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| Company Contact Info: |
|---|
| Clean Science and Technology Limited Office No. 503, Pentagon Tower P-4 Magarpatta City Hadapsar Pune 411 013 Maharashtra, India. Tel: +91 20 26899953; E-mail: compliance@cleanscience.co.in; Website: www.cleanscience.co.in |
| IPO Registrar Info: |
|---|
| Link Intime India Private Limited C 101, 247 Park L.B.S. Marg Vikhroli (West) Mumbai 400 083 Tel: +91 22 49186200 E-mail: cleanscience.ipo@linkintime.co.in Website: www.linkintime.co.in |
