Clean Science and Technology collects Rs 464 cr from anchor investors ahead of IPO

Speciality chemical manufacturer Clean Science and Technology on Tuesday said it has raised Rs 464 crore from anchor investors ahead of its initial public offer, which opens for public subscription on Wednesday.

The company has decided to allocate 51,55,404 equity shares to anchor investors at Rs 900 apiece, which is the upper end of the price band, aggregating to Rs 464 crore, according to a circular on the BSE website.

Among the anchor investors participated in the bidding are: Government of Singapore, BlackRock, Goldman Sachs India, Abu Dhabi Investment Authority abs BNP Paribas Arbitrage- ODI.

In addition, Axis Mutual Fund, ICICI Prudential MF, HDFC MF, SBI MF, Kotak MF, SBI Life Insurance Company, ICICI Prudential Life Insurance Company and Aditya Birla Sun Life Insurance Company, among others, also participated in the anchor bidding.

The Rs 1,546.62-crore initial public offering (IPO) is entirely an offer for sale (OFS) by existing promoters and other shareholders.

Those offering shares in the OFS include Anantroop Financial Advisory Services; Ashok Ramnarayan Boob; Krishnakumar Ramnarayan Boob; Siddhartha Ashok Sikchi; and Parth Ashok Maheshwari.

The issue, with a price band of Rs 880-900 a share, will open on July 7 and conclude on July 9.

Half of the issue size has been reserved for qualified institutional buyers, up to 35 per cent for retail investors, and the remaining 15 per cent for non-institutional buyers.

Clean Science Technology manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates and FMCG chemicals.

Its products are used as key starting level materials, as inhibitors, or as additives, by customers, for products.

Clean Science and Technology is known for an established market position and dominant presence in key specialty chemical products, well-diversified clientele, and application of the products largely in industries manufacturing essentials which limits impact of COVID-19 pandemic.

The company has multiple manufacturing facilities in Kurkumbh, MIDC Maharashtra that are automated to maintain high levels of accuracy and efficiency.

The Pune-based company’s customers include manufacturers and distributors in India as well as other international markets including China, Europe, the United States of America, Taiwan, Korea, and Japan. Nearly two-third of the company’s revenues comes from exports.

Axis Capital, JM Financial and Kotak Mahindra Capital are the merchant bankers to the issue. The equity shares of the company will be listed on the NSE and the BSE.