The specialty chemical company Kronox Lab Sciences started its IPO subscription on Monday, June 3, and it ended on Wednesday, June 5. By the final bidding day, the IPO had received a tremendous response from all investor segments: non-institutional investors (NIIs) subscribed 301.92 times, qualified institutional buyers (QIBs) 89.03 times, and retail investors 54.23 times. Overall, the subscription status on the third day was 117.25 times.
Half of the IPO size was reserved for QIBs, 35% for retail investors, and 15% for NIIs. Investors could bid for a minimum of 110 shares and then in multiples of 110 shares.
About Kronox Lab Sciences
Founded in 2008, Kronox Lab Sciences Limited manufactures high-purity specialty chemicals for various industries. Their products are used in APIs, pharmaceutical formulations, scientific research, nutraceuticals, agrochemical formulations, metal refineries, personal care products, and animal health products.
IPO Details and Grey Market Premium
Let’s see what the current grey market premium (GMP) suggests about the Kronox Lab Sciences IPO ahead of its listing.
Today, the GMP for Kronox Lab IPO is +33. This means that in the grey market, Kronox Lab Sciences shares are trading at a premium of ₹33, according to investorgain.com. Considering the upper end of the IPO price band and the current grey market premium, the projected listing price is ₹169 per share, which is 24.26% higher than the IPO price of ₹136.
However, based on the last ten sessions of grey market activity, the GMP (₹33) is showing a downward trend. The lowest GMP recorded was ₹30, and the highest was ₹82, as per investorgain.com.
Market Expectations and Analysis
Shivani Nyati, Head of Wealth at Swastika Investmart, mentioned that despite the recent drop in GMP due to market volatility, Kronox Lab Sciences, a manufacturer of high-purity specialty chemicals, is expected to have a decent listing. The IPO received a strong 117 times subscription, and the company’s solid fundamentals and high subscription rate suggest a good listing. However, short-term fluctuations are possible given the current market conditions.
IPO Structure and Management
The IPO does not include a fresh issue; it is solely an offer-for-sale (OFS) of 95.7 lakh equity shares. Thus, the proceeds will go entirely to the selling shareholders.
The promoters, Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani, are each selling 31.9 lakh shares.
Pantomath Capital Advisors Pvt Ltd is the book-running lead manager for the IPO, and Kfin Technologies Limited is the registrar.
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