In a record-setting day for the market, Kronox Lab Sciences, a specialty chemical company, saw its IPO fully subscribed within an hour of opening on Monday, June 3. Strong interest from both retail and non-institutional investors (NIIs) led the way. As of 12:09 PM IST, the IPO was subscribed 3.74 times, according to BSE data.
Kronox Lab IPO Share Sale
The IPO received bids for 2,50,23,900 shares against 66,99,000 shares available. The retail investor portion was subscribed 5.43 times, while the NII category saw 4.74 times subscription. The Qualified Institutional Buyers (QIBs) category was 1% subscribed.
The IPO, which opened today, will close on Wednesday, June 5. The price band is set between ₹129 and ₹136 per share, each with a face value of ₹10. Kronox Lab Sciences raised ₹39.04 crore from anchor investors on Friday, May 31.
In the IPO, 15% of the shares are allocated for NIIs, 35% for retail investors, and 50% for QIBs.
Company Overview
Kronox Lab Sciences produces high-purity specialty fine chemicals used in pharmaceuticals, nutraceuticals, scientific research, agrochemicals, metal refineries, personal care products, and animal health products.
Kronox Lab’s peers include Tatva Chintan Pharma Chem Ltd (P/E 57.57), Tanfac Industries Ltd (P/E 39.15), Neogen Chemicals Ltd (P/E 77.55), Sigachi Industries Ltd (P/E 46.64), and DMCC Speciality Chemical Ltd (P/E 116.57).
Offer-for-Sale (OFS) Component
The IPO is entirely an offer-for-sale (OFS) of 95.7 lakh shares, with proceeds going to the selling shareholders. Promoters Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani are each selling 31.9 lakh shares.
Management and Registration
The IPO’s book-running lead manager is Pantomath Capital Advisors Pvt Ltd, and the registrar is Kfin Technologies Limited.
Grey Market Premium (GMP)
The IPO’s grey market premium (GMP) today is +81, meaning shares are trading at a premium of ₹81 in the grey market. Given the upper end of the price band and current GMP, the expected listing price is ₹217 per share, which is 59.56% higher than the IPO price of ₹136.
The ‘grey market premium’ indicates the willingness of investors to pay more than the issue price.
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