Clean Science and Technology Limited (CSTL) has made an additional investment in its wholly-owned subsidiary, Clean Fino-Chem Limited (CFCL), through a rights issue. The company subscribed to 8,36,121 equity shares of face value ₹10 each at a premium of ₹588 per share, resulting in a total investment of ₹50,00,00,358 (Fifty Crores Three Hundred and Fifty-Eight Only).
The investment was made on 23rd September, 2026 at 12:30 PM IST. The newly subscribed shares will rank pari passu with the existing equity shares of CFCL.
Transaction Details
- Nature of Transaction: Subscription to rights issue of wholly-owned subsidiary
- Number of Shares: 8,36,121 equity shares
- Face Value: ₹10 per share
- Premium: ₹588 per share
- Total Investment: ₹50,00,00,358
- Payment Method: 100% cash consideration
- Ownership: Maintains 100% shareholding in CFCL
Related Party Transaction
The transaction is classified as a related party transaction since CFCL is a wholly-owned subsidiary of CSTL. However, the company has confirmed that the transaction was conducted at arm's length, and no promoters/promoter group/group companies have any interest in this specific transaction beyond what is disclosed.
Business Context
CFCL was incorporated on 22nd March, 2022 as a wholly-owned subsidiary of CSTL to manufacture and sell speciality chemicals. The company has shown significant growth in turnover over the past three years:
- FY 2023-24: ₹1.92 Crore
- FY 2024-25: ₹46.77 Crore
- FY 2025-26: ₹166 Crore
The additional capital infusion will be primarily used for funding CFCL's projects.