512349 SIP myths you must know!

Specialty chemicals manufacturer Clean Science and Technology Rs 1,546.62 crore initial public offering (IPO) is set to hit the streets next week on July 07. Here are nine things that you should know about the IPO. This is the second IPO to open on July 7 after GR Infraprojects.

Open and close date: The three-day issue will open on July 7 and close on July 9.

Issue size: Clean Science and Technology aims to raise Rs 1,546.62 crore through the public listing of shares. The issue is a complete offer for sale by existing selling shareholders including promoters Ashok Ramnarayan Boob, Krishnakumar Ramnarayan Boob, Siddhartha Ashok Sikchi, and Parth Ashok Maheshwari.

Price band: The price band for the IPO has been fixed at Rs 880-900 per share of the face value of Rs 1.

Lot size: A retail investor can bid for a minimum of 16 equity shares and in multiples, thereafter, translating to a minimum bidding amount of Rs 14,400 at the higher end of the price band. A retail investor can at max apply for 13 lots or 208 shares for 1,87,200.

The objective of the issue: Since the entire issue is an offer for sale none of the proceeds would be coming to the company’s balance sheet.

About the company: Clean Science and Technology is one of the leading chemical manufacturers globally. It manufactures functionally critical specialty chemicals such as Performance Chemicals (MEHQ, BHA, and AP), Pharmaceutical Intermediates (Guaiacol and DCC), and FMCG Chemicals (4-MAP and Anisole).

The company supplies its products to manufacturers and distributors in India as well as overseas markets i.e. China, Europe, USA, Korea, Taiwan, and Japan. Bayer, Genex Laboratories, Nutriad International, SRF, Vinati Organics are a few of its customers. In fiscal 2020, it generated 69% of revenues through export outside India. has two production facilities at Kurkumbh (Maharashtra) with an aggregated installed production capacity of 29,900 MTPA as of Dec 31, 2020.

On the financial front, the company reported total revenue of Rs 398.46 crore for 9MFY21 compared to Rs 404.56 crore in FY19. Whereas its profit after tax grew to Rs 145.26 crore versus Rs 97.65 crore during the same period.

What’s in it for retail investors: 50% of the issue is reserved for qualified institutional buyers, 35% for retail investors, and 15% for non-institutional bidders.

Book Running Lead Managers and Registrar to the IPO: The book running lead managers to the issue are Axis Capital, JM Financial, and Kotak Mahindra Capital Company. The registrar to the issue is Link Intime India.

Issue timeline: The issue is likely to finalize the basis of allotment by July 14, and the initialization of refunds will take place by July 15. While the credit of equity shares to depository accounts of the allottee will be done on July 16. The infra developer is expected to make its stock market debut on July 19, 2021.