OPEN APP
Home >Markets >Stock Markets >Clean Science shares extend gains on second day despite market sell-off

After making a bumper debut on the stock exchanges on Monday, shares of specialty chemical manufacturer Clean Science and Technology (CSTL) extended gains for the second consecutive day on Tuesday as the stock surged over 8% to 1,712 per share on the Bombay Stock Exchange (BSE) in early deals. Clean Science shares on Monday listed at nearly 100% premium over its issue price of 900 per share.

The Pune-based company manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates, and FMCG chemicals. The initial public offering (IPO) had seen an overwhelming subscription of over 93 times, given its leadership in niche green chemicals.

Indian equities weakened further on Tuesday led by global equities amid concern over the rapid spread of the delta variant. Sensex was trading over 400 points lower at 52,120 whereas Nifty 50 was down nearly 1% to 15,600 levels.

Domestic brokerage and research firm Motilal Oswal Financial Services expects the Clean Science stock to do well post listing. Green chemicals demand is expected to grow at 10.5% CAGR (F&S report) globally over CY19-25E and CSTL has built well diversified product portfolio in this space to capitalize on this opportunity, Siddharth Khemka of Motilal Oswal said.

''We like Clean Science given its global leadership in green chemicals, diversified product portfolio, robust financials with industry leading margins/return ratios and strong focus on ESG front. We expect the stock to do well post listing given the huge response in IPO, robust financials and strong demand for cos in clean chemistry," Khemka said.

Clean Science is the only company globally to use vapor phase process for Anisole (used as a key raw material). It is the third largest for Guaiacol and among the largest for DCC under Pharma Intermediates (16% of revenue), he added.

Many brokerages had recommended subscribe to the Clean Science IPO issue, citing long-term growth potential of the company and possibility of listing gains.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint. Download our App Now!!

Close
×
Edit Profile
My ReadsRedeem a Gift CardLogout