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
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
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
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
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
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%)
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
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
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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