Clean Science and Technology IPO: Key points to consider

Clean Science and Technology IPO: Key points to consider

The IPO market is gearing up for a busy season this month with ₹240 bn worth of IPOs ready to hit the street.

The companies likely to come out with their offers this month include Zomato, Chemplast Sanmar, Vijaya Diagnostic, Glenmark Life, Utkarsh SFB, Shriram Properties, G R Infraprojects, Clean Sciences, Rolex Rings, Seven Islands Shipping, Tatva Chintan among others.

From the above, Clean Science’s IPO will open this week on 7 July.

Here are the key details about this IPO…

Issue period: 7 July 2021 to 9 July 2021

IPO Size: ₹15.5 bn

Price band: ₹880 to ₹900 per equity share

Bid lot: 16 shares and in multiples thereof

Face value: ₹1 per equity share

Object of the issue: The object of the issue is to make an offer for sale (OFS) of equity shares worth ₹15.5 bn and to achieve the listing benefits on the BSE and NSE.

Of the total issue size, 50% of the offer or approximately 8.6 m equity shares worth ₹7.7 bn is reserved for qualified institutional buyers (QIB).

Retail quota is 35% of the total issue while non-institutional investors (NII) can bid for 15% of the entire issue.

Clean Sciences will not receive any funds from the public issue as the IPO is entirely an OFS.

The stock will get listed on exchanges by 19 July.

About the company

Incorporated in 2003, Clean Science and Technology is one of the leading chemical manufacturers globally.

It manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates, and FMCG chemicals.

View Full Image .

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 AG, Genex Laboratories, Nutriad International NV, SRF, Vinati Organics are a few of its customers.

Clean Science is among the few companies which is focused entirely on developing newer technologies using in-house catalytic processes.

This has enabled it to emerge as the largest manufacturer of certain speciality chemicals globally.

The company has two manufacturing facilities, both of which are located at Kurkumbh (Maharashtra).

It has also recently set-up a unit at its third manufacturing facility, adjacent to the existing facilities in Kurkumbh.

The financials

The company made a net profit of ₹489 m in the financial year 2018. This increased to ₹976.6 m in the following year and ₹1.4 bn in the financial year 2020.

For the financial year 2021, the performance chemicals segment contributed 69.2% of the total revenues while the contribution of the pharma intermediates segment stood at 16.2%.

FMCG chemicals accounted for 12.3% of the total revenues during the same period.

View Full Image Data Source: Company’s Red Herring Prospectus (RHP)

The company’s export revenue for all these years has been on an average 70% of the turnover.

It also has a consistent track record of paying dividends. The company has been paying dividends since fiscal 2012.

It has paid a dividend at the rate of 750%, 900% and 20% for the past three years.

Peer comparison

On listing, Clean Sciences Technologies will join peers such as Vinati Organics, Fine Organic Industries, Atul, SRF, Navin Fluorine, and PI Industries.

View Full Image .

Impressive grey market premium

Even though the company is yet to open its initial share sale, its shares in the unlisted market are trading at a massive 50% premium.

The grey market is an unofficial platform, wherein trading starts after the announcement of IPO price band till the listing of IPO shares.

Clean Science shares are available at a premium of ₹450.

The traded price comes to around ₹1,350, which is 50% higher over the issue price of ₹900.

Note that this will be the fourth IPO by a speciality chemical company in the past year after Rossari Biotech, Chemcon Speciality Chemicals and Anupam Rasayan.

All three are presently trading significantly higher than their issue prices.

Rossari Biotech is trading at ₹1,198 compared to its issue price of ₹425, up 182%.

Chemcon Speciality Chemicals is trading at ₹507 compared to its issue price of ₹340, up 49%.

Meanwhile, Anupam Rasayan is up 37% if compared with its issue price of ₹555.

Given the rising demand for speciality chemicals, the outlook for the sector remains promising.

Indian manufacturers have benefited from a rise in demand from global customers who aim to reduce dependence on China.

The IPO of Clean Science is likely to witness good amount of subscription as market sentiment remains positive.

How Clean Science and Technology performs on listing day remains to be seen.

This article is syndicated from Equitymaster.com

Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.

Rolex Rings gets Sebi nod to launch IPO

For the six months ended September 2020, the company posted a profit of Rs 25.31 crore and its revenue from operations stood at Rs 224.52 crore.

Auto components maker Rolex Rings has received capital markets regulator Sebi’s approval to float an initial public offer (IPO). Rolex Rings’ IPO comprises fresh issue of shares worth Rs 70 crore and an offer for sale of up to 65 lakh equity stocks by Rivendell PE LLC (formerly known as NSR-PE Mauritius LLC), according to draft red herring prospectus (DRHP). Currently, Rivendell holds 45.51 per cent stake in Rolex Rings.

The auto component maker, which filed its preliminary papers for IPO with the regulator in March, obtained its observation on May 28, an update with Securities and Exchange Board of India (Sebi) showed on Tuesday.

Sebi’s observation is necessary for any company to launch public issues like IPO, follow on public offer (FPO) and rights issue. Proceeds from the fresh issue would be used towards funding long-term working capital requirements as well as general corporate purposes.

In addition, the auto component maker expects to receive the benefits of listing of the equity shares on the stock exchanges, enhancement of its brand name amongst existing and potential customers and creation of a public market for its equity shares in India. Based at Rajkot in Gujarat, Rolex Rings is among the leading manufacturers of forged and machined components in the country.

For the six months ended September 2020, the company posted a profit of Rs 25.31 crore and its revenue from operations stood at Rs 224.52 crore.

For the fiscal year ended March 31, 2020, Rolex Rings reported a profit of Rs 52.94 crore as compared to Rs 59.04 crore in the preceding fiscal. Its revenues from operations was at Rs 666 crore in fiscal year ended March 31,2020 as against Rs 904.32 crore in the last financial year.

“The continuing impact of the outbreak of the COVID-19 could have a significant effect on our operations, and could negatively impact our business, revenues, financial condition, cash flows and results of operation,” as per the draft papers.

Equirus Capital Private Limited, IDBI Capital Markets and Securities Limited, JM Financial Limited are the book running lead managers to the issue. The equity shares of the company will be listed on the BSE and NSE.

Rolex Rings IPO Price, Date, Allotment Status, Lot Size, Review & Should You Buy or Not?

Rolex Rings IPO: The Rolex Rings Limited was Incorporated on February 13, 2003. It is a private company and it is dealing in the selling and manufacturing of Machinery components for an automobile. It has authorized Rs 560,000,000 Share capital. So far Rolex has maintained a good market value among the huge competition of various companies. Now the company plans to issue an Initial Public Offer.

In this regard company filed the IPO application to the stock exchange regulatory SEBI. Here you will get Company details along with the Rolex Rings IPO Details including Date, Price, Lot Size, Allotment, Listing and Subscription Status.

Details are revealed officially including IPO Issue Date and closing date. Currently, the IPO application filed with SEBI and remaining details will take time to be disclosed. Here is the table including all info about the IPO.

IPO Opening Date: July 28, 2021 IPO Closing Date: July 30, 2021 IPO Issue Size: Approx ₹700 Crores Fresh Issue: Approx ₹70 Crores Offer for Sale: Approx ₹630 Crores, 65,00,000 Shares Face Value: ₹10 Per Equity Share Price Band: ₹960 to ₹970 Per Share (Estimated) Listing on: BSE & NSE Retail Portion: 35% Equity: – Shares

Rolex Rings Issue Size

According to the information, The Rolex Rings IPO issue size is Rs 70 crores and it will be divided into 65 lakh Equity Shares by Rivendell PE (formerly known as NSR-PE Mauritius). It is a huge Initial Public Offer that going to amaze every investor.

Also read: A Man Who bought $69 million NFT Is Now Identified, All Details about him, Controversy

Rolex Rings IPO Price

Rolex Rings Share Price details have been revealed here and on the basis of info, the Price band is between Rs 960 to Rs 970 per share (expected).

Rolex Rings IPO Listing

The Rolex Rings IPO is likely to be list on both stock exchanges of India that are BSE & NSE. The allocation of funds will be used to expand the company and the expected expansion will generate high returns on the investment by investors of this IPO. Rolex rings IPO listing will take place on August 9, 2021.

Should You Buy Rolex Rings IPO or Not?

If we talk about that should you buy this Initial Public Offer or Not then you should decide it at your own risk. But to clear your doubt we can provide you some stats which can help you to decide that is this company under a surplus of profit or surviving under Debt?

It was recorded that in the fiscal year 2020 as of March 31, 2020 company was under a profit surplus of Rs 52.94 crore while it had Rs 59.04 crore profit in the preceding fiscal year 2019. If compare the profit of these two years then we found, It was a total Rs 6.1 crore loss which may be rise due to the COVID-19 lockdown definitely.