Clean Science & Technology Limited (CSTL) - IPO Thread
1/ IPO Details
Date of Offer: 7th July-9th July
Price Band: INR 880-900
Min. Order Qty: 16 Shares
Fresh Issue: INR 0 Cr
Offer for Sale: INR 1546.6 Cr
The company will not receive proceeds of the issue
2/ About
CSTL manufactures specialty chemicals such as performance chemicals, pharmaceutical intermediates & FMCG chemicals
Focused on developing newer technologies using in house catalytic processes
products used as key starting level materials, as inhibitors or additives
3/ Operational Highlights
Key customers include Bayer AG, SRF Ltd, Gennex Laboratories, Nutriad International NV & Vinati Organics
2 production facilities with capacity of 29,900 MTPA (Utilization 71.94% in FY21)
Majority exports to China, Europe and the US
4/ Financials
CSTL’s consolidated revenue, EBITDA and net profit recorded 14%, 38% and 43% CAGR, respectively through FY19-FY21
CSTL has maintained good profitability margins over the years
The company has remained debt free over the past few years with adequate liquidity
5/ Global Outlook
The global chemicals market is valued at $4738B in 2019
Expected to grow at a CAGR of 6.2% to $6785B by 2025
Growing trend in the chemicals industry to shift towards green chemicals
Global green chemicals market is expected to grow at a CAGR of 10.5% till FY25
6/ Peer Comparison
7/ Promoter & Major Shareholder Details
The promoters of the company held 94.65% and their
shareholding are as follows:
Ashok Ramnarayan Boob (15.4%)
Krishnakumar Ramnarayan Boob (4.7%)
Siddhartha Ashok Sikchi (3.4%)
Parth Ashok Maheshwari (6.4%)
Promoter Group (64.9%)
8/ Strengths
Leverage R&D capabilities and understanding of catalysis to develop new product portfolio
Expansion of manufacturing capacity for existing products – 4th facility planned
Strong and long-standing relationships with key customers
9/ Risk Factors
High reliance on top 10 customer (48%)
Major Revenue from exports thereby adverse global tensions can impact business
High reliance on sale of one product - MEHQ (48%)
All manufacturing facilities located in Maharashtra
None of its catalytic processes are patented
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