June 10, 2024
New Delhi, India
IPO Watch
Kronox Lab Sciences made a strong debut on the stock exchanges, listing at ₹164.95 on the NSE and ₹165 on the BSE, both reflecting a 21% premium to the issue price of ₹136. This successful listing underscores investor confidence and robust demand, as evidenced by the IPO’s oversubscription.
IPO Subscription Details
The initial public offering (IPO) of Kronox Lab Sciences, amounting to ₹130.15 crore, was open for subscription from June 3-5 with a price band of ₹129-136. The IPO was oversubscribed by 117.25 times, receiving bids for 98.54 crore shares against the 95.70 lakh shares on offer. The subscription breakdown is as follows:
- Non-Institutional Investors (NII): Subscribed 301.92 times
- Qualified Institutional Buyers (QIB): Subscribed 89.03 times
- Retail Investors: Subscribed 52.24 times
The issue was entirely an offer for sale (OFS) of 96 lakh shares, with no fresh issue component.
Investment and Allocation
Retail investors needed to invest a minimum amount of ₹14,960, corresponding to a lot size of 110 shares. The share allocation was divided as follows:
- Non-Institutional Investors (NII): 15%
- Retail Investors: 35%
- Qualified Institutional Buyers (QIB): 50%
Key Players
Pantomath Capital Advisors served as the book-running lead manager, and Kfin Technologies Limited acted as the registrar for the IPO.
Company Overview
Incorporated in 2008, Kronox Lab Sciences Limited specializes in manufacturing high-purity specialty fine chemicals used across various industries, including pharmaceuticals, biotech, nutraceuticals, agrochemicals, personal care, and more. The company offers over 185 products such as phosphate, sulphate, acetate, chloride, citrate, nitrates, nitrites, carbonate, EDTA derivatives, hydroxide, succinate, and gluconate. Kronox Lab Sciences caters to both domestic and international markets, supplying to over 20 countries.
Financial Performance
The company’s revenue increased by 16.99% and its profit after tax (PAT) rose by 21.94% between the financial years ending March 31, 2022, and March 31, 2023.
Industry Peers
Kronox Lab Sciences competes with other firms in the specialty chemicals sector, including:
- 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
- DMCC Speciality Chemical Ltd: P/E of 116.57
The successful IPO debut of Kronox Lab Sciences reflects strong investor interest and confidence in the company’s growth prospects and market position within the specialty chemicals sector.
Disclaimer:
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