Kronox Lab Sciences Lists at 21% Premium at Rs 165 per share on NSE!

Kronox Lab Sciences Limited manufactures high-purity specialty fine chemicals for diverse end-user industries, debuted on the Indian stock market today.

The stock of Kronox Lab Sciences settled at Rs 165 per share on the BSE, representing an impressive 21.32% premium over the final issue price of Rs 136 per share. Additionally, on the NSE, the company’s shares opened at Rs 164.95 per share, indicating a gain of 21.29%. The market capitalisation on the BSE stands at around Rs 612.22 crore.

IPO Proceeds 

The Objectives of the Offer were to:

• Carry out the Offer for Sale of up to 95,70,000 Equity Shares by the Promoter Selling Shareholders.
• Achieve the benefits of listing the Equity Shares on the Stock Exchanges. Further, the Company expects that the proposed listing of the Equity Shares will enhance the visibility and brand image, provide liquidity to its existing Shareholders, and provide a public market for Equity Shares in India.

Business Overview

Incorporated in 2008, Kronox Lab Sciences Limited manufactures high-purity specialty fine chemicals for diverse end-user industries. The company’s High Purity Specialty Fine Chemicals are used in various applications such as manufacturing APIs, pharmaceutical formulations, scientific research, nutraceuticals, biotech applications, agrochemical formulations, personal care products, metal refineries, and animal health products.

The company offers a wide range of over 185 products, including phosphates, sulfates, acetates, chlorides, citrates, nitrates, nitrites, carbonates, EDTA derivatives, hydroxides, succinates, gluconates, and others. These products are supplied to customers in India and more than 20 countries worldwide.

Subscription details 

As of June 5, 2024, Kronox Lab Sciences was subscribed 117.25 times. The public issue saw a subscription rate of 54.24 times in the retail category, 89.03 times in the QIB category, and 301.92 times in the NII category.

The IPO price band was Rs 129 and Rs 136, with a face value of Rs 10 per share and a lot size of 110 shares. The total size of the company’s IPO was Rs 130.15 crore, and the final share issue price was fixed at Rs 136 each.

Conclusion 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains only have already earned 21% on the listing day itself and can choose to book the profit generated or watch for at least the first 15 minutes and then set a stop-loss at the day’s low price. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.