Speciality Chemicals Company has subscribed to Additional 8,36,121 Equity Shares of Clean Fino-Chem Ltd via Rights Issue
The company has a market cap of over Rs 12,000 crore and the shares of the company have a PE of 50x, an ROE of 22 per cent and an ROCE of 30 per cent.
Clean Science and Technology Limited has announced its subscription to an additional 8,36,121 equity shares of its wholly-owned subsidiary, Clean Fino-Chem Limited (CFCL). This subscription involves shares with a face value of Rs 10 each, acquired at a premium of Rs 588 per share, amounting to a total investment of Rs 50,00,00,358. The newly subscribed shares will hold the same rights as the existing equity shares of CFCL. This transaction is identified as a related party transaction, conducted at arm's length, as CFCL is a wholly-owned subsidiary of Clean Science and Technology Limited.
Clean Fino-Chem Limited, incorporated on March 22, 2022, operates within the speciality chemicals industry. The capital infusion will be primarily directed towards funding CFCL's ongoing projects. For the financial year ending March 31, 2024, CFCL recorded a turnover of Rs 1.92 crore, while its turnover was nil for the preceding financial year ending March 31, 2023. This 100 per cent cash subscription by Clean Science and Technology Limited will provide the necessary financial backing for its subsidiary's growth initiatives in the speciality chemicals sector in India.
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Established in 2003, Clean Science and Technology Ltd stands as a prominent global chemical manufacturer, specialising in functionally critical speciality chemicals. Their extensive product portfolio includes Performance Chemicals like MEHQ, BHA, AP, TBHQ, and HALS, where they hold leading global or Indian positions in terms of capacity. Additionally, they produce key Pharmaceutical Intermediates such as Guaiacol, DCC, and p-BQ, and FMCG Chemicals like 4-MAP and Anisole, many of which also hold top global rankings. A significant portion of their Anisole production is used for their manufacturing processes.
The company has a market cap of over Rs 12,000 crore and the shares of the company have a PE of 50x, an ROE of 22 per cent and an ROCE of 30 per cent. Investors should keep an eye on this Speciality Chemicals stock.
Disclaimer: The article is for informational purposes only and not investment advice.