Clean Science IPO soars 76 per cent on BSE debut

The company is one of the leading global specialty chemical manufacturer, focused on green chemicals

Stocks in Clean Science & Technology, the niche green chemicals company, soared 76 percent to end at Rs 1,585.20 ($21.14) on Bombay Stock Exchange (BSE) debut on July 19.

The listing and the closing prices were ahead of analysts' expectations and grey market premium of around 60 percent.

The stock opened at Rs 1,784.40 ($23.79), rising 98.3 percent over the issue price of Rs 900 ($12). Initially, it hit the day's low of Rs 1,555.05 ($20.73) but remained strong throughout the session to trade with over a minimum of 70 percent gains.

It traded with volumes of 10.87 lakh equity shares on the BSE.

The Rs 1,546.62-crore public issue was subscribed 93.41 times, given its leadership in niche green chemicals. The company is one of the leading global specialty chemical manufacturer, focused on developing green chemicals.

Clean Science is the only company globally to use vapour-phase process for anisole, as a key raw material. It is the third-largest maker of Guaiacol and among the largest for DCC under Pharma Intermediates (16 percent of revenue).

Green chemicals demand is expected to grow at 10.5 percent CAGR (F&S report) globally over CY19-25 and Clean Science has built well-diversified product portfolio in this space to capitalise on this opportunity, said Siddhartha Khemka, Head-Retail Research, Broking & distribution at Motilal Oswal Financial Services.

We like Clean Science given its global leadership in green chemicals, diversified product portfolio, robust financials with industry-leading margins/return ratios and a strong focus on ESG front. We expect the stock to do well post listing given the huge response in IPO, robust financials and strong demand for companies in clean chemistry, he added.