Market debut: Kronox Lab Sciences shares list at 21% premium

Kronox Lab Sciences’ IPO shares made a decent debut at Dalal Street on Monday, June 10. The stock opened with a 21.29% premium over its issue price of Rs 136 per share on the NSE. Similarly, on the BSE, it commenced trading at a premium of 21.32% to ₹165 on BSE.

| Updated: 10 June, 2024 1:28 pm IST

NEW DELHI: Kronox Lab Sciences’ IPO shares made a decent debut at Dalal Street on Monday, June 10. The stock opened with a 21.29% premium over its issue price of Rs 136 per share on the NSE. Similarly, on the BSE, it commenced trading at a premium of 21.32% to ₹165.

The company’s public offer of Rs. 130 crore garnered significant attention from investors, being oversubscribed by over 117 times. Notably, Non-Institutional Investors (NIIs) led the bid, subscribing 302 times their allocated quota, followed by Qualified Institutional Buyers (QIBs) at 89 times, and retail investors at 54.23 times the reserved portion.

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This listing performance was in line with expectations, as indicated by the grey market premium (GMP). The grey market premium (GMP) for Kronox Lab Sciences stood at Rs 30 per share ahead of listing, indicating an anticipated listing gain of approximately 22% for investors.

Kronox Lab specializes in manufacturing High Purity Specialty Fine Chemicals for various industries, serving critical roles as reacting agents and raw materials in Active Pharmaceutical Ingredients (APIs) production, excipients in pharmaceutical formulations, and research reagents.

The IPO of Kronox Lab Sciences offered its shares in the fixed price band of Rs 129-136 per share with a lot size of 110 shares. The Vadodara-based specialty chemical firm sold its issue between June 03 and June 05 to raise a little more than Rs 130.15 crore via its primary offering, which was entirely an offer for sale of 95.70 lakh equity shares.
Analysts from various brokerage firms expressed predominantly favorable views on the IPO, citing robust fundamentals, strong competitive advantages, strategic positioning to capitalize on growth prospects, and extensive global customer relationships as key factors driving their optimism.
The company also successfully raised Rs 39.05 crore from anchor investors such as Negen Undiscovered Value Fund, Chanakya Opportunities Fund I, Minerva Emerging Opportunities Fund, Capri Global Capital, and Moneywise Financial Services.

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