Clean Science and Technology Limited has subscribed to an additional 836,121 equity shares of its wholly-owned subsidiary, Clean Fino-Chem Limited. The shares were acquired through Clean Fino-Chem’s rights issue and will rank equally with the existing equity shares.
As CFCL is a related party to CSTL, the acquisition is considered a related party transaction. However, aside from the mentioned details, the promoters, promoter group, and group companies have no other interest in the entity. The transaction was carried out at arm’s length. No governmental or regulatory approvals were required for this acquisition.
The primary reason for this investment is to fund CFCL’s ongoing projects, ensuring the entity has sufficient capital to support its growth initiatives. This acquisition aligns with CSTL’s business objectives.
The acquisition of shares in Clean Fino-Chem Limited (CFCL) by Clean Science and Technology Limited (CSTL) was fully completed through a 100% cash subscription to the equity share capital. CSTL subscribed to equity shares of CFCL at ₹10 face value with a premium of ₹588 per share, making the total consideration ₹50 crore.
Since CFCL is a wholly owned subsidiary, CSTL acquired full ownership of the shares. CSTL acquired the shares through cash consideration, subscribing to 836,121 equity shares. The cost per share was ₹10 at face value, with an additional premium of ₹588 per share.
CFCL, incorporated on March 22, 2022, is a wholly owned subsidiary of CSTL based in India. It is engaged in the manufacturing and sale of speciality chemicals. CFCL operates within the specialty chemicals industry, which is aligned with CSTL’s business focus. The company is relatively new, with a reported turnover of ₹1.92 crore as of March 31, 2024, and no turnover in the previous financial year of March 31, 2023. CSTL recently subscribed to an additional 836,121 equity shares of CFCL, each with a face value of ₹10 and a premium of ₹588, resulting in a total transaction value of ₹50 crore.
Founded in 2003, Clean Science and Technology Ltd is a top global chemical manufacturer. The company produces essential speciality chemicals, including Performance Chemicals like MEHQ, BHA, and AP, Pharmaceutical Intermediates such as Guaiacol and DCC, and FMCG Chemicals like 4-MAP and Anisole.
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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