On Wednesday, June 5, the issue will conclude. The Kronox Lab Sciences IPO price bandis set at between ₹129 and ₹136 for each equity share with a face value of ₹10. On Friday, May 31, anchor investors contributed ₹39.04 crore to the Kronox Lab IPO.
Also Read: Kronox Lab Sciences IPO: GMP, review, subscription status, other details. Apply or not?
15% of the shares in the Kronox Lab Sciences IPO have been set aside for non-institutional institutional investors (NII), retail investors have been allotted 35% of the shares, and qualified institutional buyers (QIB) have been assigned 50% of the shares.
Kronox Lab Sciences Limited was established in 2008 and produces specialty fine chemicals with high purity for a range of end markets. The firm produces APIs, pharmaceutical formulations, scientific research, nutraceuticals, agrochemical formulations, metal refineries, personal care products, and animal health products. These are just a few of the uses for its High Purity Specialty Fine Chemicals.
The listed peers of the firm 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 Speciality Chemical Ltd (P/E of 116.57).
Also Read: Kronox Lab Sciences IPO opens on June 3; here’s what GMP hints ahead of subscription
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Kronox Lab Sciences IPO review
Hensex Securities
The brokerage claims that High Purity Speciality Fine Chemicals of different grades are produced by Kronox Lab Science Ltd. for a range of end-user industries. The company exports to more than 20 nations worldwide.
Between Fiscal 2021 and 2023, the company’s operating revenues increased at a compound annual growth rate (CAGR) of 23.70%, from ₹62.46 Cr to ₹95.58 Cr. In the same time, EBITDA increased at a CAGR of 21.90%, from ₹14.80 Cr to ₹21.99 Cr. From ₹9.73 crore in Fiscal 2021 to ₹16.62 crore in Fiscal 2023, the company’s PAT increased at a compound annual growth rate (CAGR) of 30.68%.
The company’s revenue from exports was ₹16.97 crore, ₹19.57 crore, ₹24.27 crore, ₹19.29 crore, and ₹12.84 crore for the nine months ended December 31, 2023, December 31, 2022, and the Fiscal 2023, 2022, and 2021. These amounts accounted for 25.07%, 26.41%, 25.39%, 23.46%, and 20.56% of its revenue from operations, respectively.
“The company faces competition primarily from domestic and international companies. We suggest investors to Subscribe to the issue for Listing Gains as well as with Long Term Investment Perspective,” said the brokerage.
Kronox Lab Sciences works in the specialised fine chemicals industry, according to the brokerage. Due to its broad range of products that serve different end-user sectors and its strict production procedures that create obstacles to entrance and departure, the firm is well-positioned for long-term growth. Its production facilities are ideally positioned, and it has built excellent client connections. Their steady financial performance and debt-free status serve to further bolster their sound financial standing.
But there are certain important concerns to take into account. Due of its exposure to global markets, Kronox Lab Sciences is subject to variations in foreign exchange rates. Furthermore, their present manufacturing process employs a smaller percentage of their total capacity, and their goods are delivered in restricted amounts for certain uses, which may constrain the growth of their income.
“Despite these considerations, 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 with due diligence regarding the aforementioned risks,” the brokerage said.
Kronox Lab Sciences IPO details
There is no fresh issue component to the IPO; there is only an offer-for-sale (OFS) of 95.7 lakh equity shares. As a result, the selling shareholders will get the full issue proceeds.
The OFS’s selling shareholders include the promoters Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani, who are each offloading 31.9 lakh shares.
The book running lead manager for the Kronox Lab Sciences IPO is Pantomath Capital Advisors Pvt Ltd, and the registrar is Kfin Technologies Limited.
Kronox Lab Sciences IPO GMP today
Kronox Lab IPO GMP today or grey market premium is +81. This indicates Kronox Lab Sciences share price were trading at a premium of ₹81 in the grey market, according to investorgain.com.
Considering the upper end of the IPO price band and the current premium in the grey market, Kronox Lab Sciences IPO expected listing price was indicated at ₹217 apiece, which is 559.56% higher than the IPO price of ₹136.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.
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Published: 04 Jun 2024, 08:55 AM IST
