IGI Logo

Below is Perspective on Clean Science and Technology Ltd (CSTL) IPO Listing By Mr. Siddhartha Khemka, Head - Retail Research, Broking & distribution, Motilal Oswal Financial Services Ltd

“Clean Science and Technology Ltd (CSTL) has a stellar listing on the exchanges today with 78% premium at Rs1,600/share against its issue price of Rs900/share. It had seen an overwhelming subscription of 93x, given its leadership in niche green chemicals. CSTL is one of the leading global specialty chemical manufacturer, focused on developing green chemicals.

CTSL is the only company globally to use vapor phase process for Anisole (used as a key raw material). CSTL also manufactures sulphur-free BHA & sulphur-free DCC. It has grown to be the largest manufacturer globally of MEHQ and BHA and second largest for AP under Performance Chemicals (69% of FY21 revenues) while it is largest for both Anisole/ 4-MAP under FMCG Chemicals (12% of revenues). It is the third largest for Guaiacol and among the largest for DCC under Pharma Intermediates (16% of revenue).

Green chemicals demand is expected to grow at 10.5% CAGR (F&S report) globally over CY19-25E and CSTL has built well diversified product portfolio in this space to capitalize on this opportunity. We like Clean Science given its global leadership in green chemicals, diversified product portfolio, robust financials with industry leading margins/return ratios and 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 cos in clean chemistry.”

Above views are of the author and not of the website kindly read disclaimer