Clean Science vs GR Infra : Which IPO should you subscribe?

Clean Science & Technology and GR Infraprojects will roll out their initial share-sale offers on July 7, 2021 to raise a little more than ₹ 2,500 crore cumulatively.

The IPOs of Clean Science & Technology and GR Infraprojects will open for subscription on July 7, 2021 and conclude on July 9, 2021.

Indian market, which is flooded with liquidity, should be able to absorb the two IPOs with ease, feel experts.

The key question for the investors is which one should they choose.

Experts are of the view that both companies look good from an investment perspective, but if someone has to choose one, then Clean Science & Technology has an edge.

Expert’s views

With company’s robust financial position, leadership in market share in some of its products, strong clientele (like Bayer AG and SRF for agrochemical products, Gennex Laboratories for pharmaceutical intermediates, and Vinati Organics), and strong prospects of chemical industry, we recommend “Subscribe” on the issue,” Astha Jain, Senior Research Analyst at Hem Securities said.

Both IPOs are looking good to us but if anyone wants to put money in only one issue, then we recommend Clear Science as a strong bet for short as well as long term,” she added.

Clean Energy is going to list at a PE of 48.18x with a market-cap of Rs.95,597 million, while its peers, namely Vinati Organics and Fine Organics are trading at 77.4X and 75.1X times, respectively.

We recommend to “Subscribe” this IPO as the company is amongst the largest producers globally of functionally critical Speciality Chemicals and is available at favourable valuation as compared to its peers,” Marwadi Shares and Finance said in a report.

For long-term investment, both the companies look good. Clean science is a speciality chemical manufacturing company with innovative chemical processes developed in-house. The company product portfolio includes performance chemical, pharmaceutical intermediates, FMCG chemicals and company sales is more than 60% export,” Akhil Rathi – Vice President Advisory at Marwadi Shares and Finance said.

Clean Science is among the largest producers globally of functionally critical Speciality Chemicals, and for all products, global position is among the top 3. On the Financial front, company revenue, EBITDA and PAT saw a CAGR of 14.2%, 38.9%, and 42.5%, respectively, during FY19-21. At an upper price band of Rs 900, Clean Science and Technology is priced 48 times the earnings of FY21, which is attractive as compared to peers,” he added.

Verdict

Both the IPOs are very attractive and have wealth generation capabilities. However, if one were to choose between the two, Clean Science edges out GR Infraprojects owing to its unique position in the market and attractive valuation.

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