Clean Science and Technology Ltd has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise Rs 1,400 crore through an initial public offering (IPO). The issue consists of an offer for sale by its current promoters and shareholders. Ashok Ramnarayan Boob and Asha Ashok Boob will sell shares worth Rs 223.35 crore each, Krishnakumar Ramnarayan Boob will sell shares for around Rs83.08 crore, Ashokkumar Ramkishan Sikchi HUF will sell shares worth Rs 124.53 crore, Asha Ashok Sikchi is to sell shares worth Rs 104.47 crore, and Siddhartha Ashok Sikchi is to sell equity shares worth Rs 37.08 crore. Axis Capital, JM Financial and Kotak Investment Banking are the book-running managers to the issue.
The Pune-based specialty chemicals major will not receive any proceeds from the offer and all the proceeds will be received by the selling shareholders. For the nine months ending December 2020, the firm reported a total income of Rs398.46 crore against Rs 322.86 crore a year ago. Net profit for the period stood at Rs145.27 crore versus Rs106.80 crore. Net debt for the period stood at Rs 65.96 crore
The company is the largest manufacturer globally of specialty chemical products such as MEHQ, BHA, Anisole and 4-MAP, and manufacture functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates and FMCG chemicals.
Clean Science and Technology, a family-owned firm, is among the few companies globally focused entirely on developing newer technologies using in-house catalytic processes, which are eco-friendly and cost competitive.