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Clean Science and Technology Ltd witnessed a sharp spike in trading volumes and price volatility on August 21, 2025, following a block deal that was disrupted by a punching error at the broker’s end. The company has since issued a clarification confirming that the sell orders were mistakenly placed for significantly higher volumes than intended, triggering confusion and a temporary plunge in the stock price.
The promoters had planned to offload up to 24 percent of their equity stake through a structured block deal, but the actual execution saw over 6 crore shares exchanged—more than double the intended volume of 2.5 crore shares. The error originated from Spark Institutional Equities (Avendus Capital), which was acting as one of the brokers for the transaction. Clean Science has stated that remedial steps have been initiated and the sellers are awaiting a formal explanation from the broker.
Key highlights from the clarification and market activity
- Promoter group intended to sell 2.5 crore shares, representing 24 percent of equity
- Due to a punching error, over 6 crore shares were exchanged in the block deal
- Floor price was set at Rs 1,030 per share, a 13 percent discount to the previous close
- The deal was valued at approximately Rs 2,626 crore
- Stock dropped 7 percent intraday before recovering to Rs 1,137.90 on the NSE
Promoter stake sale and transaction structure
The promoters, including Ashok Ramnarayan Boob and Krishnakumar Ramnarayan Boob, had planned the stake sale as part of a long-term liquidity and diversification strategy. The transaction included a three-year lock-in period, with exceptions for inter-promoter transfers, change of control, or court-approved schemes. JP Morgan and Spark Institutional Equities acted as joint brokers.
- Pre-sale promoter holding: 74.9 percent
- Post-sale holding expected to reduce significantly
- Institutional interest reported from foreign and domestic investors
- Block deal structured to maintain governance continuity
Broker error and remedial measures
The error occurred during the execution of the block deal, where the sell orders were mistakenly punched for more than twice the intended volume. Clean Science clarified that the discrepancy was purely technical and not reflective of any change in promoter intent. The company has initiated discussions with the broker to understand the cause and ensure corrective action.
- Punching error led to over 6 crore shares being exchanged
- Sellers awaiting formal explanation from Spark Institutional Equities
- Remedial steps initiated to prevent recurrence
- No change in promoter strategy or company fundamentals
Market reaction and trading volumes
The stock saw a dramatic increase in trading volumes, surging over 7,700 times the two-week average. The price fell to an intraday low of Rs 1,075.20 before stabilizing. Despite the volatility, analysts noted that the company’s financial fundamentals remain strong and the block deal was well absorbed by institutional buyers.
- Volume spike: 649.31 lakh shares traded by mid-morning
- Previous average daily volume: 8,380 shares
- Stock recovered partially, closing down 3.6 percent
- Investor sentiment stabilized after company clarification
Financial performance and outlook
Clean Science reported an 8 percent year-on-year increase in revenue for Q1 FY25, reaching Rs 240 crore. EBITDA grew 5 percent, with margins holding steady at 41.7 percent. The company continues to maintain leadership in specialty chemicals, serving global clients across pharmaceuticals, FMCG, and industrial segments.
- Q1 FY25 revenue: Rs 240 crore
- EBITDA margin: 41.7 percent
- Net profit aligned with operational growth
- Continued focus on innovation and export markets
Looking ahead
Despite the temporary disruption caused by the broker error, Clean Science and Technology Ltd has reaffirmed its operational stability and transparency. The successful execution of the promoter stake sale, coupled with strong financials, positions the company for continued growth. Investors are expected to monitor post-deal shareholding disclosures and institutional inflows in the coming sessions.
Sources: Samco, Economic Times, Business Standard.
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