Check out the details for investing in Kronox Lab Sciences; IPO bidding starts today
The IPO of specialty fine chemicals maker Kronox Lab Sciences opened for public subscription on Monday, June 3. The bids, which will be held for three days, will end on June 5. The actual target of generating around ₹130 crore through the IPO is being set.
The company has garnered ₹39.05 crore from six anchor investors, including Negen Undiscovered Value Fund, Chanakya Opportunities Fund I, and Minerva Emerging Opportunities Fund.
Kronox Lab IPO review
Master Capital Services made earnings estimates, and the specialists noted that the company would be able to grow significantly in the coming years, given the number of expansions that the company has planned. The IPO is even offered at a lower price than competitors that have already been listed on the market.
In a recent note, the broking firm said that with a current installed capacity of 7,242 MTPA, the company is working at a capacity utilization level of almost 50% for the first nine months of the fiscal year 2024. They have designed it to increase its capacity by more than double, that is, 18,000 MTPA, and plan to commission it in the next two years by establishing another Unit at Dahej.
Due to these factors, growing prospects, and valuations, based on a medium to long-term view, the brokerage has recommended ‘Subscribe’ to the Initial Public Offering.
Overall, considering strengths, risk factors, and a reasonable P/E ratio of 31. 62 times, the IPO’s subscribe rating for potential listing gains and long-term growth with Kronox Lab Sciences” is suggested, as stated in the Swastika Investment note to clients.
Kronox Lab IPO GMP
Just before the issue opened, Kronox Lab Sciences’ shares could be traded in the unlisted space at ₹82, an unconventional market where trading begins prior to the IPO allotment and persists until the listing of the company’s shares.
Many investors follow the GMP in order to estimate the listing prices among the stocks.
Kronox Lab IPO price
The company has also fixed its price band for the IPO at ₹ 129-₹ 136 per share. At this price band’s cap, Kronox Lab is looking to mobilize ₹130 crores.
Kronox Lab IPO size
The IPO is a public offer for the sale of up to 97. 5 lakh Equity Shares of INR 100 each are proposed to be placed with selling shareholders, Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani, all of whom are part of the promoters and group. The public issue does not have a secondary offering component.
Kronox Lab IPO structure
A minimum of 50% of the public issue has been earmarked for qualifying institutional investors, 15% for non-institutional investors, and 35% for other investors.
Kronox Lab IPO objectives
The IPO proceeds, in this case, will go to the selling shareholders as it is a purely OFS Issuance.
Company background
It is focused mainly on the production of High-Purity Specialty Fine Chemicals for material science and other industries. They play vital roles as the cleaner and starting material for manufacturing Active Pharmaceutical Ingredients (APIs), as an excipient in preparation of dosage forms, and as reagents in scientific applications.
They are further employed in forming various sectors, including nutraceuticals, biotechnological, agricultural chemicals, personal care products, metal processing, and animal health sectors.
Pharmaceutical customers generate 45% of the company’s total revenues, while scientific research, lab testing, and nutraceutical customers contribute 26%, 24 %, and 5 %, respectively.
Kronox Lab IPO BRLM
Pantomath Capital Limited has acted as the sole book-running lead manager for the issue process of the preference shares, and Kfin Technologies has been appointed as the company’s registrar.
About the IPO of the Kronox Lab, details of the IPO, IPO allotment, and the date of the listing.
The last date for the director’s approval is June 6, and based on this, the expected stock listing date is June 10.
