Clean Science IPO: In chat with Anil Singhvi, Executive Director Siddhartha Sikchi says company has enough cash for 3-4 years

Clean Science and Technology Limited IPO will open for public subscription from tomorrow, July 7, 2021. The bidding for anchor investors has already started today, July 6. Clean Science and Technology Limited IPO issue will remain open for public till July 9.

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Talking about this IPO, Zee Business Managing Editor Anil Singhvi informed that it is entirely an offer for sale (OFS) worth Rs 1,546.62 crore by the existing promoters and other shareholders. " Promoters will reduce their stake in the company from 94.66 % to 78.55%. The company will not raise any money," said the Market Guru. 

Ahead of the IPO subscription on Wednesday, Zee Business Managing Editor spoke to Clean Science and Technology Limited Executive Director Siddhartha Sikchi and asked about the company's business model.  

Sikchi said the company deals in manufacturing of functionally critical specialty chemicals such as Performance Chemicals, Pharmaceutical Intermediates and FMCG Chemicals. "We use noble catalytic process, which a very few companies in India use. This sort of removes affluents almost completely and there are certain processes that globally only our company use. This is why we have 30% to 50% global market share in some of our products. The technology that we have developed are used by very few companies globally. Besides, there are also some unique processes that only we use," said Clean Science and Technology Limited ED. 

Talking about why it is only offer for sale and whether the company need cash with respect to expansion plan or not, Siddhartha Sikchi said, Clean Science and Technology Limited has been a debt-free company for the past 7 to 8 years now. "We have accumulated cash during this period. We already have cash pile of Rs 250 crore to 275 crore, which is more than sufficient vis a vis company's apex requirement for at least three to four years. This is why it is only offer for sale as the company does not require extra money at this point of time." 

On why the promoters are diluting their stake, Sikchi said, "When a company lists, there is good visibility and many opportunities open up. We have also planned employees pool and look forward to any acquisition that come our way as a listed player get many opportunities. Plus, there is also confidence among customer-supplier when a company is listed."     

Meanwhile, Clean Science and Technology Limited IPO price band has been fixed at Rs. 880 to Rs. 900 per Equity Share, while the bids can be made for a minimum of 16 equity Shares and in multiples of 16 Equity Shares thereafter. Minimum investment amount for this IPO is Rs 14,400.