Shares of Clean Science listed at Rs 1,784.40 on the BSE, a 98 per cent premium over initial public offering (IPO) price of Rs 900. The opening price was also its day’s high of Rs 1,784.40.
Roads and highways developer GR Infraprojects’ shares listed 103 per cent higher at Rs 1,700 against the issue price of Rs 837. The stock closed at Rs 1,746.80, up 108.7 per cent from its IPO price. During the day, the stock went as high as Rs 1,838.80.
“Both of them have individual strengths and pricing was attractive, which is rare these days as most IPOs are priced to perfection,” said Geetanjali Kedia, senior analyst, SPTulsian.com. “GR Infra, despite having higher growth and better margin to peers, priced the issue at a discount to peers.”
Clean Science is a unique specialty chemicals company with upper-tier margins and given that few specialty chemical players are trading at 60-70 times earnings, Clean Science IPO was priced at 48 times, making it attractive, said Kedia.
Clean Science’s Rs 1,546.62-crore IPO was open for subscription between July 7 and July 9 alongside GR Infraprojects’ Rs 936-crore IPO. While GR Infraprojects’ issue got subscribed 102.6 times, the offer of Clean Science was subscribed 98.26 times.
Most brokerages had given a subscribe rating to Clean Science’s IPO due to its robust financials, industry-leading return ratios, diversified product portfolio and strong client bases.
Brokerages also favoured the IPO of GR Infraprojects citing strong track record and order book along with a lean balance sheet.
“If one has been allotted these stocks, they can hold but I would not recommend buying at these levels as pricing after listing has become in line with peers. I would not advise an exit either,” said Kedia.
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