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In a major development that could reshape the ownership structure of Clean Science and Technology Ltd, promoters Ashok Boob and Krishnakumar Boob are set to offload up to 24 percent of their stake in the company through a block deal. The transaction, expected to be executed on Thursday, is valued at over Rs 2,626.5 crore and marks one of the largest promoter exits in the Indian speciality chemicals sector this year.
The deal comes at a time when Clean Science is navigating global headwinds, margin pressures, and a recalibration of its growth guidance. Here's a comprehensive look at the implications, structure, and timing of this high-stakes move.
Key highlights from the proposed stake sale
- Promoters plan to sell 2.55 crore shares, representing 24 percent of the company’s equity
- The block deal is expected to raise Rs 2,626.5 crore, with a floor price set at Rs 1,030 per share
- The floor price reflects a 12.8 percent discount to the last closing price of Rs 1,181.20 on the Bombay Stock Exchange
- Spark Institutional Equities (Avendus Capital) and JP Morgan are the joint brokers managing the transaction
- The promoter group currently holds 74.9 percent stake in Clean Science, which will drop significantly post-sale
Why promoters are trimming their stake
According to sources familiar with the deal, the stake dilution is part of a broader estate planning and succession strategy. The management had hinted at this possibility during its July earnings call, citing the need to diversify holdings and improve public shareholding levels.
The deal also includes a three-year lock-up period for the remaining promoter stake, with carve-outs allowed for inter-se transfers, court-approved schemes, or changes in control. This structure is designed to reassure investors about long-term promoter commitment while enabling liquidity.
Impact on stock performance and investor sentiment
Shares of Clean Science and Technology Ltd closed at Rs 1,181.20, down 0.70 percent, ahead of the block deal announcement. Market analysts expect short-term volatility due to the size of the transaction and the discount offered. However, the move could improve liquidity and attract institutional interest, especially from foreign investors looking for exposure to India’s high-margin chemical manufacturing sector.
The company’s fundamentals remain strong, with Clean Science reporting an 8 percent year-on-year revenue growth in Q1 FY26 to Rs 240 crore. EBITDA rose 5 percent to Rs 100 crore, while net profit increased by 6 percent. However, margins narrowed by 100 basis points to 41.7 percent, prompting the management to revise its EBITDA growth guidance to 15–18 percent from the earlier 18–20 percent.
Strategic outlook and growth drivers
Despite the margin compression, Clean Science remains optimistic about its growth trajectory. Over 25 percent of Q1 revenue came from new product launches, and the company gained market share in key segments. Management expects momentum to pick up from Q3 FY26, driven by:
- Better capacity utilisation
- Operating leverage from new plants
- Expansion into new geographies
- Increased demand for eco-friendly catalytic processes
Clean Science is one of the few global players focused on in-house catalytic technologies that are both cost-effective and environmentally sustainable. Its portfolio includes functionally critical chemicals used in FMCG, pharmaceuticals, and electronics.
What this means for the sector
The promoter exit signals a maturing phase for Indian speciality chemical companies, many of which are now transitioning from founder-led models to more diversified ownership structures. It also reflects growing investor appetite for clean-tech and green chemistry firms, especially those with scalable IP and export potential.
As the block deal unfolds, market watchers will be keen to see who picks up the stake—whether it’s domestic mutual funds, foreign institutional investors, or strategic buyers looking for a foothold in India’s booming chemical sector.
Sources: Business Today, CNBC TV18, Economic Times, Moneycontrol.
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