Clean Science and Technology IPO: Should you subscribe?

Clean Science & Technology IPO : Should you subscribe

Clean Science & Technology Ltd. (CSTL) IPO opens for subscription on 7th July, 2021. This is the fourth issue by a speciality company in the last 12 months after Rossari Biotech, Chemcon Speciality and Anupam Rasayan.

About the company

Clean Science & Technology 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 it to emerge as the largest manufacturer globally of certain speciality chemicals in terms of installed manufacturing capacities as of March 31, 2021. Also read Why privatization of banks is bad?

Clean Science & Technology IPO details

Size of IPO : ₹1546 crores. Shares of face value ₹1

Subscription dates : 07 July 2021 to 09 July 2021

Price Band : ₹880-₹900 per share

Lot Size : 16 shares per lot

Value of 1 lot : ₹14,400 at the upper price range of ₹900 per share

Maximum lots per person : A retail investor can apply for 13 lots. This would cost ₹187.200.

The proceeds of the IPO will be used for funding working capital requirements and general corporate purposes.

What do the experts say about the Clean Science and Technology IPO?

Clear Science and Expertise Restricted (CSTL) is among the many few firms globally targeted totally on creating newer applied sciences utilizing in-house catalytic processes, that are eco-friendly and value aggressive. This has enabled to emerge as the biggest producer globally of sure specialty chemical substances when it comes to put in manufacturing capacities as of March 31, 2021. It has grown organically, and its revenues and profitability have constantly elevated, to emerge as probably the most worthwhile specialty chemical firms globally.” – HDFC Securities

Financials of Clean Science and Technology

Clean Science and Technology has grown in leaps and bounds over the years. The revenue has grown from ₹236 crores in 2018 to ₹430 crores in 2020. The asset base too has grown from ₹236 crores to ₹430 crores over this period. Profits have more than tripled, from ₹44 crores to ₹160 crores over this period.

In Fiscal 2020 and in the nine months ended December 31, 2020, revenue from operations for sales outside India represented 68.76% and 65.36% of companies total revenue from operations. Some of the company’s key customers include Bayer AG, SRF Limited, Gennex Laboratories Limited, Nutriad International NV, and Vinati Organics Limited, etc.

Verdict

Considering the positive growth prospects, and strong financials several analysts have issued a SUBSCRIBE rating to this IPO. This IPO has the potential to give listing gains as well as generate wealth in the future.

To apply for the IPO, click here.

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