"The company's exposure to international markets presents foreign exchange fluctuation risks.
Additionally, their current production capacity utilisation is below maximum, and limited product quantities might restrict revenue growth in some areas.
"Despite these considerations, the analyst said that Kronox Lab Sciences' strong fundamentals, high subscription rate, and still significant GMP suggest a decent listing.
However, with the current market volatility, short-term fluctuations are possible, she added.The IPO saw robust bidding, especially on the final day, which led to a subscription of 118.22 times at close.
The quota for qualified institutional bidders (QIBs) was subscribed 89.03 times, while the quota for non-institutional investors was booked a whopping 302.99 times.
NSE
Kronox Lab Sciences subscription status
Business overview
The shares of Kronox Lab Sciences , a manufacturer of high-purity specialty fine chemicals, will list on the exchanges on Monday (June 10), and the unlisted market trends indicate decent listing gains for allotted investors.Its shares are commanding a premium of ₹33 in the grey market, and considering the upper price band of ₹136, the stock is expected to list with a premium of over 24%.Shivani Nyati of Swastika Investmart anticipates a decent listing despite a recent decline in its grey market premium (GMP) due to volatile market conditions.Nyati said that investors should be aware of potential risks. "The company's exposure to international markets presents foreign exchange fluctuation risks. Additionally, their current production capacity utilisation is below maximum, and limited product quantities might restrict revenue growth in some areas."Despite these considerations, the analyst said that Kronox Lab Sciences' strong fundamentals, high subscription rate, and still significant GMP suggest a decent listing. However, with the current market volatility, short-term fluctuations are possible, she added.The IPO saw robust bidding, especially on the final day, which led to a subscription of 118.22 times at close. The quota for qualified institutional bidders (QIBs) was subscribed 89.03 times, while the quota for non-institutional investors was booked a whopping 302.99 times. The category reserved for retail investors witnessed 55.72 times bidding.Ahead of the issue opening, the company mopped up nearly ₹39 crore from anchor investors.Some of the marquee investors who participated in the anchor round include Negen Undiscovered Value Fund, Chanakya Opportunities Fund I, Minerva Emerging Opportunities Fund, Capri Global Capital, Moneywise Financial Services, and VPK Global Ventures Fund.The IPO of Kronox Lab Sciences, which was open for subscription from June 3 to June 5, raise a little more than ₹130 crore through the public issue.The issue was entirely an offer for sale of up to 97.5 lakh shares, in which shareholders Jogindersingh Jaswal, Ketan Ramani and Pritesh Ramani, all part of the promoter group offloaded stakes.The company sold its shares in the range of ₹129 and ₹136 apiece with a lot size of 110 shares.The IPO proceeds will go to the selling shareholders since the issue is entirely an OFS.Kronox Lab specialises in the manufacturing of High Purity Specialty Fine Chemicals for various industries. Its products serves essential roles as reacting agents and raw materials in Active Pharmaceutical Ingredients (APIs) production, excipients in pharmaceutical formulations, and reagents for scientific research.Additionally, they find applications in nutraceuticals, biotech applications, agrochemicals, personal care products, metal refineries, and animal health products.The company receives 45% of its revenues from Pharmaceuticals, 26% from Scientific Research and Lab testing, 24% from Nutraceuticals and 5% from others.
