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Clean Science and Technology Ltd’s Strategic Investment in CFCL

24 June 20243 mins read by Angel One
Clean Science and Technology Ltd strengthens subsidiary CFCL with ₹50 crore rights issue, enhancing growth in the speciality chemicals sector.
Clean Science and Technology Ltd’s Strategic Investment in CFCL
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On June 20, 2024, Clean Science and Technology Limited announced in a stock exchange filing its subscription to an additional 8,36,121 equity shares of Clean Fino-Chem Limited (CFCL). These shares, with a face value of ₹10 each and a premium of ₹588 per share, amounting to a total of ₹50,00,00,358 (Rupees Fifty Crores Three Hundred and Fifty-Eight Only), were acquired through a rights issue.

CFCL operates as a wholly owned subsidiary of Clean Science and Technology Limited, having been incorporated on March 22, 2022, within the speciality chemicals industry sector.

The capital infusion from this rights issue is earmarked primarily for funding Clean Fino-Chem Limited’s growth capital expenditure initiatives. This strategic move aligns with Clean Science and Technology Limited’s broader objective of bolstering CFCL’s operational capabilities and expanding its market presence in the speciality chemicals segment.

Clean Science and Technology Limited emphasised that these newly subscribed shares will rank equally with its existing equity shares, ensuring parity in shareholder rights across the board. The decision to augment Clean Fino-Chem Limited’s capital base underscores Clean Science and Technology Limited’s commitment to supporting its subsidiary’s expansion strategies and enhancing its competitive edge in the specialised chemicals market.

The acquisition also reflects Clean Science and Technology Limited’s proactive stance in leveraging opportunities within related sectors to diversify and strengthen its portfolio. By investing in Clean Fino-Chem Limited’s growth, Clean Science and Technology Limited aims to capitalise on synergies and operational efficiencies that will drive sustained growth and value creation for its shareholders.

Clean Fino-Chem Limited is involved in the manufacturing and sale of speciality chemicals. As of March 31, 2024, Clean Fino-Chem Limited reported a turnover of ₹1.92 crore.

About Clean Science and Technology Limited

Clean Science and Technology is a prominent global manufacturer of speciality chemicals essential for various industries. Its product range includes Performance Chemicals like MEHQ, BHA, and AP, Pharmaceutical Intermediates such as Guaiacol and DCC, and FMCG Chemicals like 4-MAP and Anisole.

On June 21, 2024, the share price of Clean Science and Technology Ltd opened at ₹1,480.00, touching the day’s high at ₹1,485.00, as of 9:33 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

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