Shares of Clean Science and Technology made a strong debut on exchanges today. On NSE, Clean Science shares were trading higher at ₹XXXX as compared to issue price of ₹900. The IPO of the speciality chemical manufacturer was subscribed over 93 times. The retail segment was subscribed 9 times while Qualified Institutional Buyers (QIBs) 156.37 times and non-institutional investors 206.43 times.
Prior to the IPO, Clean Science and Technology had raised ₹464 crore from anchor investors.
The Pune-based company manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates, and FMCG chemicals.
Many brokerages had recommended subscribe to the issue, citing long-term growth potential of the company and possibility of listing gains.
“We like Clean Science and Technology given its global leadership in green chemicals, diversified product portfolio, robust financials with industry leading margins/return ratios and strong focus on ESG front. It is well placed to tap opportunity in the fast growing specialty chemical space especially green chemicals, by leveraging its strong R&D capabilities and expanding product portfolio,” Motilal Oswal said in a note.
“The issue is reasonably valued at 48.2x FY21 P/E on post issue basis (avg. peer FY21 P/E of 60x), while it enjoys higher RoE of 45% (avg. peer RoE of 18%). We believe that the market would like to give premium valuation to such emerging niche stories. We recommend Subscribe,
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