Kronox Lab Sciences IPO Opens on Monday: 10 Key Points to Know Before Investing

June 3, 2024

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The Kronox Lab Sciences IPO is set to open for subscription on Monday, June 3, and will close on June 5. The company aims to raise around ₹130 crore through this public offering. Here are 10 essential things to know before you consider investing:

Business Overview: Kronox Lab Sciences produces high-purity specialty chemicals used in various industries. Their product range includes over 185 items like phosphates, sulfates, acetates, chlorides, and citrates. These products are sold in India and over 20 other countries.
Industry Overview: The Indian chemicals industry (excluding pharmaceuticals) had an output value of around ₹9.10 lakh crore in FY22, contributing 8.4% to the manufacturing sector’s output. The industry saw a CAGR of 8.8% from FY18 to FY22.
IPO Size: The IPO is entirely an offer for sale (OFS) of up to 97.5 lakh shares. There is no fresh issue component.
Price Band: The IPO price band is set at ₹129-136 per share. At the upper end, the company expects to raise ₹130 crore.
IPO Structure: 50% of the offer is reserved for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs), and the remaining 35% for retail investors.
Financial Performance: In the nine months ending December 2023, Kronox Lab Sciences saw a 9% drop in revenue to ₹67.6 crore, while net profit after tax increased by 10% to ₹15.4 crore.
IPO Objectives: Since the IPO is entirely an OFS, all proceeds will go to the selling shareholders.
GMP (Grey Market Premium): The current GMP for Kronox Lab Sciences is ₹80 in the unlisted market, according to analysts.
Lead Managers: Pantomath Capital is the sole book-running lead manager for the IPO, and Kfin Technologies is the registrar.
Share Allotment and Listing Dates: The share allotment will be finalized on June 6, and the estimated listing date is June 10.

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