Kronox Lab Sciences IPO: Should You Invest?

Kronox Lab Sciences Limited has launched its initial public offering (IPO) today, aiming to raise ₹130.15 crore through a complete offer for sale (OFS). This means the company won’t receive any immediate capital from the IPO, but it does provide an opportunity for existing shareholders to sell their stakes. The IPO, which opened today, will remain available for subscription until June 5, 2024. The price range is set between ₹129 and ₹136 per equity share.

Grey Market Buzz and Early Interest

There’s already quite a buzz in the grey market, with shares of Kronox Lab Sciences trading at a premium of ₹83. This indicates strong demand even before the official listing. Remarkably, the IPO was fully subscribed within just half an hour of opening. By 11:03 AM on the first day, the subscription levels were impressive: the overall issue was subscribed 2.13 times, with the retail segment at 3.20 times and the non-institutional investors (NII) segment at 2.48 times.

Key Facts You Need to Know

Grey Market Premium (GMP): Shares are trading at a premium of ₹83.
Price Band: ₹129 to ₹136 per equity share.
Subscription Period: Open from June 3 to June 5, 2024.
IPO Size: Total issue size of ₹130.15 crore.
Lot Size: Minimum bid is for 110 shares.
Allotment Date: Expected on June 6, 2024.
Registrar: KFin Technologies Limited.
Listing: Shares expected to be listed on BSE and NSE by June 10, 2024.

About Kronox Lab Sciences

Kronox Lab Sciences is a company that specializes in high purity specialty fine chemicals used across various industries, such as pharmaceuticals, nutraceuticals, personal care, scientific research, and more. They have a dedicated in-house research and development team of 16 members, constantly working on new products and improving existing ones to meet industry standards and customer specifications.

Financial Highlights

Kronox Lab Sciences has shown robust financial growth over the past few years. From fiscal 2021 to 2023, their revenue grew at a compound annual growth rate (CAGR) of 23.70%, rising from ₹62.46 crore to ₹95.58 crore. During the same period, their EBITDA increased at a CAGR of 21.90%, from ₹14.80 crore to ₹21.99 crore. Moreover, their profit after tax (PAT) soared by a CAGR of 30.68%, from ₹9.73 crore to ₹16.62 crore. Impressively, the company is debt-free, boasting a strong balance sheet and healthy cash flow.

Expert Opinions

Market analysts are optimistic about Kronox Lab Sciences’ prospects. Asit C Mehta highlights the company’s presence in a niche market and its strong product portfolio. Axis Capital underscores the firm’s solid financial performance and growth potential, suggesting that it could be a worthwhile investment for those interested in the primary market.

How to Apply

Interested investors can apply for the Kronox Lab Sciences IPO through the ASBA (Application Supported by Blocked Amount) process via their bank accounts. Alternatively, online applications can be made through platforms like Zerodha, Upstox, and Paytm Money. Simply log into the respective application, select the IPO, enter your UPI ID, quantity, and price, and then approve the mandate on your UPI app.

Final Thoughts

With its strong financial background, specialized market focus, and positive grey market indications, the Kronox Lab Sciences IPO appears to be an attractive investment opportunity. However, as with any investment, it’s crucial to consider your financial situation and consult with a financial advisor before making a decision.