Kronox Lab Sciences IPO day 3: GMP, review to subscription status. Apply or not?

Kronox Lab Sciences IPO GMP today

The grey market premium (GMP) for the Kronox Lab Sciences IPO is currently at ₹82, according to market observers. They note that the grey market sentiment has remained consistently stable over the past two days, which is a reassuring sign for the public issue. Despite heavy selling on Tuesday, the grey market remains bullish on the Kronox Lab Sciences IPO, indicating a potential improvement in the grey market bias once there is a trend reversal in the secondary market.

Kronox Lab Sciences IPO subscription status

By 10.33 AM on day 3 of bidding, the public issue was booked 29.38 times, the retail portion of the public offer was subscribed 28.13 times whereas the NII segement was subscribed 66.94 times. The QIB portion of the book build issue was booked 3.42 times.

Kronox Lab Sciences IPO review

During the nine months ending December 31, 2023, 141 customers, representing 23.82% of the total, placed repeat orders. This significant customer loyalty is a testament to Kronox’s reputation for quality, reliability, and customer satisfaction. The company’s top 10 customers have maintained an average relationship tenure of 7 years in Fiscal 2023 and 9 years in both Fiscal 2022 and Fiscal 2021.

Giving an ‘Apply’ tag to the book build issue, Ventura Securities said, “Strategically located in Gujarat, close to major seaports, Kronox is well-positioned for efficient national and international distribution. The upcoming GIDC Dahej – II Industrial Estate manufacturing unit reflects its commitment to expanding its production capacity and meeting growing market demand.”

Adroit Financial Services also gave a ‘buy’ tag to the public issue, highlighting the positive financial performance of Kronox Lab Sciences: “The company had EBITDA of ₹22.00 crores and EBITDA margin of 23.0%. The company’s profit after tax for fiscal 2023 was ₹16.6 crores with a PAT margin of 17.0%, growing at a CAGR of 31% over Fiscal 2021 to 2023. The company’s return on equity (RoE) and return on capital employed (RoCE) were 37.2% and 49.9%, respectively, for fiscal 2023.” These figures reflect a robust financial performance and are likely to instill optimism in potential investors.

Disclaimer: The views and recommendations above are those of individual analysts, experts, and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decisions.

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Published: 05 Jun 2024, 08:58 AM IST