Kronox Lab Sciences IPO Subscription Status

Kronox Lab Sciences - IPO subscription Status on Day-3

As of 5.45 pm on 05th June 2024, out of the 66.99 lakh shares on offer in the IPO (excluding anchor portion), Kronox Lab Sciences saw bids for 7,854.51 lakh shares. This implies an overall subscription of 117.25X at a macro level at the close of Day-3 of the IPO. The granular break-up of subscriptions as of the close of Day-3 of the Kronox Lab Sciences IPO has been captured as under. There is no employee quota in the IPO of Kronox Lab Sciences

The subscriptions were led by the HNI / NII investors followed by the QIB investors and the Retail investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that was the case in this issue also in the case of QIB bids and HNI / NII bids. In fact, both the QIB and the NII bids picked up momentum on the last day since that is when the bulk HNI funding bids, corporate bids, and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Data Source: BSE

The IPO is open up to 07th June, 2024, and the IPO has closed for subscription as of date. The stock of Kronox Lab Sciences  has a face value of ₹10 per share and it is priced in the range of ₹129 to ₹136 per share with the final IPO price to be discovered via book building. It is entirely an offer for sale (OFS). The IPO subscription closes on 05th June 2024 and credits to the demat account to the extent of shares allotted will happen by the close of 07th June 2024 under ISIN (INE0ATZ01017).

Kronox Lab Sciences - IPO subscription Status on Day-2

As of 5.15 pm on 04th June 2024, out of the 66.99 lakh shares on offer in the IPO (excluding anchor portion), Kronox Lab Sciences saw bids for 1,645.99 lakh shares. This implies an overall subscription of 24.57X at a macro level at the close of Day-2 of the IPO. The granular break-up of subscriptions as of the close of Day-2 of the Kronox Lab Sciences IPO has been captured as under. There is no employee quota in the IPO of Kronox Lab Sciences

The subscriptions were led by the HNI / NII investors followed by the Retail investors and the QIB investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Data Source: BSE

The IPO is open up to 05th June, 2024, at which point we will know the final subscription status of the IPO.

The stock of Kronox Lab Sciences  has a face value of ₹10 per share and it is priced in the range of ₹129 to ₹136 per share with the final IPO price to be discovered via book building. It is entirely an offer for sale (OFS). The IPO subscription closes on 05th June 2024 and credits to the demat account to the extent of shares allotted will happen by the close of 07th June 2024 under ISIN (INE0ATZ01017).

Kronox Lab Sciences IPO Subscription Status on Day-1

As of 5.15 pm on 03rd June 2024, out of the 66.99 lakh shares on offer in the IPO (excluding anchor portion), Kronox Lab Sciences saw bids for 330.30 lakh shares. This implies an overall subscription of 4.93X at a macro level. The granular break-up of subscriptions as of the close of the first day of the Kronox Lab Sciences IPO was as under:

The subscriptions were led by the HNI / NII investors followed by the Retail investors and the QIB investors in that order. QIB bids and NII bids typically gather most of the momentum on the last day, and that would be the case in this issue also in the case of QIB bids. Both the QIB and the NII bids pick momentum on the last day since that is when the bulk HNI funding bids, corporate bids and the bulk QIB bids come in. Here are the details of the category-wise subscription. The overall subscription excludes anchor portion.

Data Source: BSE

The IPO is open up to 05th June, 2024, at which point we will know the final subscription status of the IPO.

Kronox Lab Sciences IPO – Share Allocation Across Categories

The entire anchor allocation was made at the upper end of the price band of ₹136 per share. This includes the face value of ₹10 per share plus a share premium of ₹126 per share, taking the anchor allocation price to ₹136 per share. Let us focus on the anchor allotment portion ahead of the Kronox Lab Sciences Ltd IPO, which saw the anchor bidding opening and also closing on 31st May 2024. Post the anchor allocation, here is how the overall allocation looked.

Data Source: Company RHP

Here it must be noted that the 28,71,000 shares allocated to the anchor investors on 31st May 2024, were actually reduced from the original QIB quota; and only the residual amount would be available to QIBs in the IPO. That change has been reflected in the table above, with the QIB IPO portion reduced to the extent of the anchor allocation. As a result, the QIB quota has reduced from 50.00% before the anchor allocation to 20.00% after the anchor allocation. The overall allocation to QIBs includes the anchor portion, so the anchor shares allotted has been deducted from the QIB quota for the purpose of the public issue. The total anchor allocation was worth ₹39.05 crore and was made across 6 anchor investors and accounted for 30% of the overall IPO size.

About the Kronox Lab Sciences IPO

The stock of Kronox Lab Sciences IPO has a face value of ₹10 per share and it is a book building issue. The price band for book building is set in the range of ₹129 to ₹136 per share. The IPO of Kronox Lab Sciences will purely be an offer for sale (OFS) with no fresh issue component in the IPO. While a fresh issue tends to bring in fresh funds into the company, it is also EPS and equity dilutive. On the other hand, OFS is just a transfer of ownership. The offer for sale (OFS) portion of the IPO of Kronox Lab Sciences comprises the sale / offer of 95,70,000 shares (95.70 lakh shares), which at the upper price band of ₹136 per share will translate into an OFS size of ₹130.15 crore. Out of the OFS size of 95.70 lakh shares, 3 promoter shareholders (Joginder Singh Jaswal, Ketan Ramani, and Pritesh Ramani) will offer 31.90 lakh shares each; aggregating to a total OFS size of 95.70 lakh shares. That will constitute the entire IPO size in the case of Kronox Lab Sciences.

Since there is no fresh issue portion in the IPO, the offer for sale (OFS) portion will also double up as the total size of the issue. Thus, the total IPO of Kronox Lab Sciences will comprise of the OFS of 95,70,000 shares (95.70 lakh shares approximately) which at the upper end of the price band of ₹136 per share aggregates to total issue size of ₹130.15 crore. The IPO of Kronox Lab Sciences will be listed on the NSE and the BSE on the IPO mainboard. Being entirely an OFS, no fresh funds come into the company, so the question of utilization of funds does not arise. The company was promoted by Joginder Singh Jaswal, Ketan Ramani, and Pritesh Ramani. The promoter holding prior to the IPO stands at 99.98%, which will get diluted to 74.18% post the IPO, on account of promoters diluting their stake via OFS. The IPO will be lead managed by Pantomath Capital Advisors Private Ltd; while KFIN Technologies Ltd will be IPO registrar.

Next Steps in the Kronox Lab Sciences

The issue opened for subscription on 03rd June 2024 and closes for subscription on 05th June 2024 (both days inclusive). The basis of allotment will be finalized on 06th June 2024 and the refunds will be initiated on 07th June 2024. In addition, the demat credits are expected to also happen on 07th June 2024 and the stock will list on 10th June 2024 on the NSE and the BSE. Kronox Lab Sciences will test the appetite for such pharma outsourcing stocks in India. The credits to the demat account to the extent of shares allotted will happen by the close of 07th June 2024 under ISIN (INE0ATZ01017).