The public issue is worth Rs 1,546.6 crore which is a complete offer for sale. Shareholders and promoters are reducing their stake in the company with the CSTL issue.
Chemical firm Clean Science and Technology (CSTL) opened its initial public offering (IPO) on Wednesday, 7 July. On day 2 of the CSTL IPO, Thursday, 8 July, the issue was subscribed 3.8 times. CNBC TV18 reported that against the IPO size of 1.23 crore equity shares, the issue received 4.68 crore equity shares.
The portion for qualified institutional buyers was subscribed 1.63 times. Retail investors subscribed their portions 5.06 times while non-institutional investors their reserved portion 3.77 times.
The public issue is worth Rs 1,546.6 crore which is a complete offer for sale. Shareholders and promoters are reducing their stake in the company with the CSTL issue. It was launched on 7 July and the subscription will close on 9 July. The price band has been fixed at Rs 880 to Rs 900 per equity share.
After anchor investors raised funds on 6 July, the offered size was reduced from 1.718 crore equity shares to 1.23 crore equity shares. The company gained Rs 463.98 crores as it issued 51,55,404 equity shares at the price of Rs 900 per share.
Several analysts have given the CSTL IPO a subscribe rating. As reported by Business Insider India, Angel Broking has said that the specialty chemical industry is going to become one of the biggest beneficiaries of the change in supply chains caused due to the COVID-19 pandemic. They have recommended that buyers ‘subscribe’ to the CSTL IPO issue. Other firms like Aditya Birla Capital, BP Wealth, Investmentz, Hem Securities and Canara Bank Securities have also assigned ‘subscribe’ rating to the issue.
With this issue, the company plans to increase its visibility and also generate liquidity for the promoter group.