The categories reserved for retail and NIIs were booked over 7x, while that of QIB investors was subscribed 60%.
The issue, which closes on June 5, is completely an offer for sale (OFS) of 95.7 lakh shares. Since the IPO is entirely an OFS, all the net proceeds will go to the selling shareholders Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani, all part of the promoter group.
Also Read: Kronox Lab Sciences IPO opens for subscription. Should you bid?
About 50% of the offer is reserved for qualified institutional buyers, 15% for non-institutional investors, and the remaining 35% for retail investors.
Kronox Lab Sciences IPO GMP
In the unlisted market, the company’s shares are trading with a premium of Rs 80.
Kronox Lab Sciences IPO review
Analysts advised investors to subscribe to the issue as the company’s diverse product portfolio catering to various end-user industries, coupled with high entry and exit barriers due to stringent manufacturing processes, positions it for sustainable growth.
“The IPO’s P/E valuation of 31.62x appears reasonable. Taking into account Kronox Lab Sciences’ strengths, potential risks, and attractive valuation, we recommend a subscribe rating to this IPO for potential listing gains and long-term growth,” said Swastika Investmart.
Kronox Lab Sciences IPO price band
The company has fixed a price band of Rs 129-136 per share for its maiden public offer. At the upper end, it plans to raise Rs 130 crore.
Other details
Kronox Lab Sciences manufactures high purity Speciality fine chemicals for diversified end-user industries. Its products are utilized in the production of pharmaceutical formulations, nutraceuticals, scientific research, agrochemical formulations, metal refineries, personal care products, and animal health products, among other uses.
Over the years, it has expanded its scale of operations and global footprint with customers in over 20 countries including the US, Argentina, Mexico, Australia, Egypt, among others. The revenue from exports has grown at a CAGR of 37.46% between FY21-23.
In the nine-months ended December 2023, the company’s revenue from operations fell 9% to Rs 67.6 crore, while net profit after tax increased 10% to Rs 15.4 crore.
Pantomath Capital is the sole book-running lead manager for the IPO and Kfin Technologies is the registrar.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
