Kronox Lab Sciences IPO shares to list today; will it deliver a strong listing pop

Shares of Kronox Lab Sciences will make its Dalal Street debut on Monday and the stock is expected to deliver a mild listing pop at the bourses on the first session of the new week. If one goes by the grey market premium (GMP) of the company, the stock may list at a decent gain at listing, even as its premium in the unofficial market has taken a big hit.
 

The grey market premium (GMP) of Kronox Lab Sciences has been correcting sharply, ahead of its listing, despite a strong response for the issue. Last head, the Kronox Lab Sciences was commanding a premium of Rs 30 per share, suggesting a listing pop of around 22 per cent for the investors. However, it was at Rs 80-85, when the issue closed for bidding.
 

Kronox Lab Sciences is likely to have a decent listing despite a recent decline in its grey market premium due to volatile market conditions, said Shivani Nyati, Head of Wealth at Swastika Investmart. Despite these considerations, Kronox Lab's strong fundamentals, high subscription rate, and still GMP suggest a decent listing, she said.
 

"However, investors should be aware of potential risks. The company's exposure to international markets presents foreign exchange fluctuation risks. Additionally, their current production capacity utilization is below maximum, and limited product quantities might restrict revenue growth in some areas," Nyati added.
 

The 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 IPO of Vadodara-based specialty chemical firm was open for bidding between June 03 and June 05. It raised 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.
 

The issue saw robust bidding, especially on the third and last day, which led to an overall subscription of 118.22 times. The quota for qualified institutional bidders (QIBs) was booked 89.03 times, while the quota for non-institutional investors was subscribed a whopping 302.99 times. The portion reserved for retail investors saw bidding for 55.72 times.
 

Kronox Lab Sciences is a manufacturer of high-purity specialty fine chemicals for diverse end-user industries. Its high purity specialty fine chemicals are used in various industries including manufacturing APIs, pharma formulations, scientific research, nutraceuticals, biotech, agrochemical, personal care , metal refineries, and animal health care.
 

Brokerage firms were mostly positive on the back of sound fundamentals, strong moats, positioning for the growth opportunities and solid relationships with customers across the globe. Pantomath Capital Advisors is the sole book running lead manager of the Kronox Lab Sciences IPO, while Kfin Technologies was the registrar for the issue.
 

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