Clean Science block deal today: Stock in focus as promoters may sell 24% stake

Shares of Clean Science and Technology Ltd are in focus on Thursday morning as promoters are likely to offload a significant stake worth up to Rs 2,626 crore in the speciality chemicals firm through a block deal today, CNBC Awaaz reported. The floor price of the deal is set at Rs 1,030 per share, which is at 12.8 per cent discount to Wednesday’s closing price. 

Clean Science shares are 28 per cent off their October 2024 high of Rs 1,643.35 apiece. Amid a challenging industry environment, Indian chemical companies reported mixed results for June quarter despite a generally easy year-ago base. In the case of Clean Science, analysts had cut their earnings estimates post its June quarter results, as Ebitda margin contracted due to higher other expenses. 

Among selling shareholders, Krishnakumar Ramnarayan Boob & family, along with Ashok Ramnarayan Boob & family, are said to be planning to sell up to 24 per cent stake in the company, as per the deal terms. 

“While the non-established products faced demand softness, the established products which contribute to 83 per cent of standalone sales to continue to deliver steady growth coupled with the commissioning of Performance Chemical 1 in 2QFY26 and Performance Chemical 2 by 4QFY26 is expected to be an additional revenue driver,” MOFSL said last month. 

PL Capital in a note said new capacity additions are expected to be key growth drivers for Clean Science going aherad. However, “the company’s margin profile may face some pressure, as certain new products such as HALS are expected to yield lower profitability compared to the legacy portfolio,” it said.

As far as the block deal is concerned, the proposed transaction carries a three-year lock-up period, though certain carve-outs have been allowed. These include inter-se transfers within the promoter group, sales that result in a change of control, or transactions carried out under a court-approved scheme, the term sheet suggested.

Spark Institutional Equities, a subsidiary of Avendus Capital, and JP Morgan are said to be the joint brokers managing the sale.

As of now, the promoter group collectively holds a 74.9 per cent stake in Clean Science. In its July earnings call, the management had already hinted at the possibility of a minority stake dilution to support family estate planning and management.

Clean Science and Technology as well as the joint brokers were unavailable for immediate comment on the development.

The proposed deal includes a three-year lock-up period, with certain exceptions. These cover inter-se transfers within the promoter group, sales leading to a change of control, or transactions under a court-approved scheme, according to the term sheet.