www.jstinvestments.com Clean Science and Technology Ltd IPO – Everything you need to know! About Clean Science and Technology Ltd Clean Science & Technology is a specialty chemicals company which produces Performance Chemicals (i.e. MEHQ, BHA and AP), Pharmaceutical Intermediates (i.e. Guaiacol and DCC), and FMCG Chemicals (i.e. 4-MAP and Anisole). Their products are used as polymerization inhibitors, intermediates for agrochemicals and pharmaceuticals, anti-oxidants, UV blockers, and antiretroviral reagents, which are functionally critical in a wide range of industries, including in the manufacture of paints and inks, agro-chemicals, pharmaceuticals, flavours and fragrance, food and animal nutrition (feed), and personal care (cosmetics) products. The Company was established on ‘green’ or eco-friendly manufacturing processes led by differentiated catalytic technologies. About the offer: Issue Size- 1546crs Offer for sale (Promoters selling out)- 1546 crs [ The company will not receive any proceeds from the offer and all the proceeds will be received by the selling shareholders. ] Price Band- 880-900 /share Market lots- 16 shares Mcap- 9550 crs at upper band. IPO dates- 7 to 9th July, 2021 Industry Trends: 1. Green Chemistry.
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www.jstinvestments.com
Clean Science and Technology Ltd IPO – Everything you need to know!
About Clean Science and Technology Ltd
Clean Science & Technology is a specialty chemicals company which produces Performance
Chemicals (i.e. MEHQ, BHA and AP), Pharmaceutical Intermediates (i.e. Guaiacol and
DCC), and FMCG Chemicals (i.e. 4-MAP and Anisole).
Their products are used as polymerization inhibitors, intermediates for agrochemicals and
pharmaceuticals, anti-oxidants, UV blockers, and antiretroviral reagents, which are
functionally critical in a wide range of industries, including in the manufacture of paints and
inks, agro-chemicals, pharmaceuticals, flavours and fragrance, food and animal nutrition
(feed), and personal care (cosmetics) products. The Company was established on ‘green’ or
eco-friendly manufacturing processes led by differentiated catalytic technologies.
About the offer:
Issue Size- 1546crs
Offer for sale (Promoters selling out)- 1546 crs [ The company will not receive any proceeds
from the offer and all the proceeds will be received by the selling shareholders. ]
Price Band- 880-900 /share
Market lots- 16 shares
Mcap- 9550 crs at upper band.
IPO dates- 7 to 9th July, 2021
Industry Trends:
1. Green Chemistry.
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2. Indian speciality chemicals are expected to grow double digits till 2025.
a. Tightening of environmental norms (e.g. REACH registration, evaluation,
authorisation and restriction of chemicals regulations) in developed countries
and the slowdown of China are contributing to the growth of exports.
b. China’s specialty chemicals market has seen a downturn in recent years due to
various factors, the most prominent being the introduction of stringent
environmental norms. In 2018, an estimated 40% of the chemical
manufacturing capacity in China was temporarily shut down for safety
inspections, with over 80,000 manufacturing units charged and fined for
breaching emission limits.
c. The labour cost in China was lower than that of India till 2007. However, over
2005-2015, the average labour cost in China increased at a CAGR of almost
19% to 20%, against 4% to 5% in India. Over the last five years, this cost has
more than doubled compared to India, rendering Chinese manufacturers’
uncompetitive vis-à-vis India in terms of labour cost.
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3. Key chemicals that the company is selling:
4. The global personal care, pharmaceutical, animal feed, and agrochemical markets are
valued at US$ 255 billion, US$ 1.3 trillion, US$ 425 billion, and US$ 62.5 billion, in
Fiscal 2019, respectively, and are expected to grow at a CAGR of 6.00%, 4.5%, 3.7%
and 6.6%, between Fiscal 2019 and Fiscal 2025, respectively (Source: F&S Reports)
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About the Company:
They are developing products using newer technologies using in-house catalytic processes,
which are eco-friendly and cost competitive. They have developed these technologies through
process innovation and consistent R&D. Various catalysts have been developed in-house
through R&D, which are used across process developments, and have helped improve
productivity, yields, atom economy and cost efficiencies. By employing “clean-
technologies”, they distinguish their processes from conventional processes and optimize use
of non-toxic raw materials, resulting in lower effluent generation, and products that are not as
harmful to the end-consumer as conventionally produced chemicals. For instance, they
manufacture sulphur-free BHA and sulphur-free DCC.
They manufacture functionally critical specialty chemicals such as Performance Chemicals
(i.e. MEHQ, BHA and AP), Pharmaceutical Intermediates (i.e. Guaiacol and DCC), and
FMCG Chemicals (i.e. 4-MAP and Anisole). Within 17 years of incorporation, they have
grown to be the largest manufacturer globally of MEHQ, BHA, Anisole and 4-MAP, in terms
of installed manufacturing capacities as of March 31, 2021.