PremiumMumbai: Two initial public offerings (IPO) -- GR Infraprojects Ltd and Clean Science and Technology Ltd -- which opened on Wednesday, were fully subscribed on the first day of their share sale. GR Infra was subscribed 2.25 times, while Clean Science was subscribed 1.7 times.
Clean Science IPO received bids for 20.95 million shares against IPO size of 12.03 million shares, and GR Infraprojects got bids for 18.52 million shares over the size of 8.12 million shares, according to the subscription data available on the exchanges.
For Clean Science and Technology, the non-institutional portion was subscribed 2.19 times, and that of retail investors 2.54 times, while qualified institutional buyers portion was subscribed just 1%.
G R Infraprojects IPO's retail portion was subscribed the most with 3.19 times, the portion for non-institutional investors subscribed 2.68 times and employees 24% and qualified institutional buyers was subscribed 49%.
Clean Science and Technology garnered ₹463.98 crore from 41 anchor investors and G R Infraprojects raised ₹283.33 crore from 22 anchor investors on Tuesday.
The public issues of Clean Science and Technology and G R Infraprojects close for subscription on 9 July.
Clean Science & Technology manufacturers functionally critical specialty chemicals such as performance chemicals, pharma intermediates & FMCG chemicals. It has two plants at Kurkumbh (Pune, Maharashtra) with 11 production lines & a cumulative capacity of 29,900 MTPA.
Motilal Oswal in an IPO note said "Given its global leadership in green chemicals, diversified product portfolio, robust financials with industry-leading margins/return ratios and strong focus on Environmental, Social, and Corporate Governance (ESG) front and it is well placed to tap opportunity in the fast growing specialty chemical space especially green chemicals, by leveraging its strong R&D capabilities and expanding product portfolio. The issue is reasonably valued at 48.2 times FY21 price earning multiple on post issue basis, enjoys higher return on equity of 45%."
The public offer comprises a complete offer for sale by existing selling shareholders including the promoter.
Anand Rathi in an IPO note said "G R Infraprojects Limited is poised to deliver healthy growth on the topline as well as the bottom-line front on the back of its strong order book. On the valuation front, at the higher-end of the issue price band, the company is available at a discount to its other listed road-focused EPC peers on price to equity basis and enterprise value to EBITDA of 6.0 times its FY21 EBITDA. The company reported a return on equity of 24.0% in FY2021, which is among the best in the industry."
GR Infraprojects is an integrated road engineering, procurement and construction company with experience in design and construction of various road/highway projects across 15 states in India and has recently diversified into railway sector projects.
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