Clean Science IPO: Shares trade at 50% premium in grey market ahead of issue


Specialty chemical company Clean Science and Technology shares are trading at a massive 50 percent premium in the grey market ahead of the opening of its initial public offer (IPO).

This will be the fourth mainboard issue by a speciality company in the last 12 months after Rossari Biotech, Chemcon Speciality and Anupam Rasayan. Their shares are currently trading at 182 percent, 49 percent and 37 percent  higher to their respective issue prices.

Clean Science share is available at a premium of Rs 450 in the grey market, the information available on the IPO Watch and IPO Central showed.

The traded price comes to Rs 1,350 in the grey market, which is 50 percent higher over issue price of Rs 900, the higher end of price band.

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

The price band for the offer has been fixed at Rs 880-900 per share.

Clean Science plans to raise Rs 1,546.62 crore through public issue during July 7-9, which comprises a complete offer for sale by existing selling shareholders including Ashok Ramnarayan Boob, Krishnakumar Ramnarayan Boob, Siddhartha Ashok Sikchi, and Parth Ashok Maheshwari.

Hence, the entire offer money (after reducing issue expenses) will go to selling shareholders.

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Clean Science is among a few companies globally that focuses on developing newer technologies using in-house catalytic processes, which are eco-friendly and cost competitive. This has enabled the company to emerge as the largest manufacturer globally of certain specialty chemicals in terms of installed manufacturing capacities as of March 31, 2021.

Its customers include manufacturers and distributors in India as well as other regulated international markets including China, Europe, the United States of America, Taiwan, Korea, and Japan. In FY21, exports contributed 67.86 percent to the total revenue from operations.

Vinati Organics, Fine Organic Industries, Camlin Fine Sciences, Atul, SRF, Navin Flourine International, and PI Industries are among its listed peers.