Kronox Lab Sciences made a robust debut on the stock exchanges today, June 10, 2024, with its share price listing at ₹164.95 on the NSE, a 21% premium over the issue price of ₹136. On the BSE, the stock opened at ₹165, reflecting a 21.32% increase or ₹29 above the IPO price.
The ₹130.15 crore IPO was open for subscription from June 3-5, priced between ₹129-136. It saw overwhelming demand, being subscribed 117.25 times, with bids for 98.54 crore shares against the 95.70 lakh shares available. The non-institutional investor (NII) portion was subscribed 301.92 times, the qualified institutional buyers (QIB) segment 89.03 times, and the retail investor category 52.24 times.
The IPO consisted entirely of an offer for sale of 96 lakh shares, with no fresh issue. The minimum lot size for application was 110 shares, requiring a minimum investment of ₹14,960. Shares were allocated with 15% for NIIs, 35% for retail investors, and 50% for QIBs. Pantomath Capital Advisors managed the IPO, and Kfin Technologies Limited served as the registrar.
Incorporated in 2008, Kronox Lab Sciences Limited manufactures high-purity specialty fine chemicals used in various industries, including pharmaceuticals, nutraceuticals, biotech, agrochemicals, personal care, metal refining, and animal health. The company offers over 185 products and supplies customers in India and over 20 other countries.
Listed peers include Tanfac Industries Ltd (P/E of 39.15), Neogen Chemicals Ltd (P/E of 77.55), Sigachi Industries Ltd (P/E of 46.64), Tatva Chintan Pharma Chem Ltd (P/E of 57.57), and DMCC Specialty Chemical Ltd (P/E of 116.57).
Financially, Kronox Lab Sciences saw a 16.99% increase in revenue and a 21.94% rise in profit after tax (PAT) from the fiscal year ending March 31, 2022, to March 31, 2023. Most experts recommend subscribing to the issue for long-term gains due to the company’s broad product range, strong production procedures, strategic facility locations, and solid client relationships. However, concerns include exposure to foreign exchange rate fluctuations and limited capacity utilization.
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