Clean Science and Technology IPO : Subscribe or NOT?

The data has been compiled from various sources and might have small difference but overall theme is to subscribe or not — we will focus on that

Clean Science and technology IPO– Incorporated in the year 2003, fine and specialty chemical manufacturing company, with innovative chemical processes developed in-house. Clean Science and Technology is a family-owned business and work primarily on developing clean and eco-friendly manufacturing processes.

Business — 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

Region of operation — Customers include manufacturers and distributors in India as well as other international markets including China,
Europe, the US, Taiwan, Korea, and Japan. Approx. 66% of the company’s revenues come from exports

Offer purpose — The IPO is 100% Offer For Sale (OFS) . None of the proceeds will flow to the company

Risks —

Company will not get anything from IPO for future expansion etc

Highly competitive industry and well established peers

High dependence on exports

Strength

Globally leading supplier of certain chemicals; Ansole, 4-MAP, MEHQ, BHA, DCC, etc.
Strategically located manufacturing facility with close proximity to JNPT port to export products.
Strong long-term relationship with key customers.
Consistent track record of financial performance.
International presence with export to several countries i.e. China, USA, Korea, Japan, Taiwan, etc.

Future

Company has been growing well and automated operations, continued focus on product identification, process innovation, catalyst development, significant scale of operations as well as our measures towards strategic backward integration have all contributed to its success as one of the fastest growing and among the most profitable specialty chemical companies globally .

Valuations

Valuations are little on higher side and compare well with peers

Should we apply?

People can subscribe for long term and keep on adding on dips & review holdings with each quarter earnings

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