 "Kronox Lab Sciences debuts with 21% premium over issue price, slips later")
Kronox Lab Sciences listing: Kronox Lab Sciences shares made a healthy debut on the bourses on Monday, getting listed at Rs 165 per share on the BSE - a 21.3 per cent premium over its issue price of Rs 136 per share. On the National Stock Exchange (NSE), Kronox Lab listed at Rs 164.95.
After the listing, the stock slipped to a low of Rs 156.8 apiece in the intraday trade. At 12:06 PM, the stock was quoting at Rs 160.5 per share, up 18 per cent from its issue price.
While the listing marked a positive performance, it fell short of pre-listing expectations fueled by the high grey market premium (GMP). According to analysts, the company enjoys a strong position within the specialty fine chemicals sector, but the current market volatility might have contributed to a more tempered listing performance compared to expectations.
"Kronox Lab Sciences' listing, while not on the anticipated lines, signifies a decent debut with strong investor interest. The company has a diverse product portfolio and enjoys competitive advantages due to high entry and exit barriers. However, the lower-than-expected premium and the ongoing market volatility warrants a cautious approach. Investors may hold their position with a stop-loss of Rs 150," said Shivani Nyati, head of wealth, Swastika Investmart.
Kronox Lab Sciences manufactures high purity speciality fine chemicals for diversified end user industries. It manufactures products compliant with reagents, pharmacopeia, and various food grade standards used in the pharmaceutical, nutraceutical, veterinary, food, biotech, chemical analysis and research, metallurgy, personal care and other specialty markets.
The company's product groups include acetates, carbonates, chlorides, citrates, hypophosphites, nitrates, nitrites, phosphates, sulphates, and other ultra-pure fine chemicals.
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Its initial public offer (IPO) received bids for 78,54,49,390 shares against the 66,99,000 shares on offer. This was 117.25 times subscription for the IPO.
Financially, the company's revenues from operations grew at CAGR of 23.70 per cent between Fiscal 2021 to 2023, from Rs 62.46 crore to Rs 95.58 crore, while its Ebitda grew at a CAGR of 21.90 per cent from Rs 14.80 crore to Rs 21.99 crore during the same period.
The company's PAT grew at a CAGR of 30.68 per cent between FY21 to FY23 from Rs 9.73 crore to Rs 16.62 crore. The company is a zero-debt company with a strong balance sheet and cash flow position.