Kronox Lab Sciences Limited is set to launch an Initial Public Offering (IPO) valued at ₹130.15 crores, consisting entirely of an offer for sale of 0.96 crore shares.
**Key Dates:**
– **Subscription Period:** June 3, 2024, to June 5, 2024
– **Allotment Finalization:** June 6, 2024
– **Listing Date:** June 10, 2024 (BSE, NSE)
**Pricing and Investment:**
– **Price Band:** ₹129 to ₹136 per share
– **Minimum Lot Size:** 110 shares
– **Minimum Investment for Retail Investors:** ₹14,960
– **Minimum Investment for Small Non-Institutional Investors (sNII):** ₹209,440 (14 lots)
– **Minimum Investment for Big Non-Institutional Investors (bNII):** ₹1,002,320 (67 lots)
The IPO is managed by Pantomath Capital Advisors Pvt Ltd, with Kfin Technologies Limited as the registrar.
**IPO Details:**
– **Face Value:** ₹10 per share
– **Total Issue Size:** 9,570,000 shares (₹130.15 crores)
– **Offer for Sale:** 9,570,000 shares (₹130.15 crores)
### Kronox Lab Sciences IPO Reservation
The IPO offers shares in the following categories:
– **Qualified Institutional Buyers (QIBs):** Up to 50% of the net issue
– **Retail Investors:** At least 35% of the net issue
– **Non-Institutional Investors (NIIs or HNIs):** At least 15% of the net issue
### Tentative Timeline
– **IPO Opens:** June 3, 2024
– **IPO Closes:** June 5, 2024
– **Basis of Allotment:** June 6, 2024
– **Refunds Initiation:** June 7, 2024
– **Credit of Shares to Demat Accounts:** June 7, 2024
– **Listing Date:** June 10, 2024
– **Cut-off Time for UPI Mandate Confirmation:** 5 PM on June 5, 2024
### Lot Size and Investment
Investors can bid for a minimum of 110 shares. The investment details are:
– **Retail Investors:** Minimum investment of ₹14,960 (110 shares)
– **Small HNIs:** Minimum investment of ₹209,440 (1,540 shares, 14 lots)
– **Big HNIs:** Minimum investment of ₹1,002,320 (7,370 shares, 67 lots)
### Promoters and Business Overview
The promoters of Kronox Lab Sciences Limited are Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani. Incorporated in 2008, Kronox Lab Sciences Limited manufactures high-purity specialty fine chemicals for various industries.
**Core Products:**
– Phosphate, sulphate, acetate, chloride, citrate, nitrates, nitrites, carbonate, EDTA derivatives, hydroxide, succinate, gluconate, among others.
These products are used in applications such as:
– Manufacturing APIs
– Pharmaceutical formulations
– Scientific research
– Nutraceuticals
– Biotech applications
– Agrochemical formulations
– Personal care products
– Metal refineries
– Animal health products
The company exports to countries including the United States, Argentina, Mexico, Australia, Egypt, Spain, Turkey, United Kingdom, Belgium, UAE, and China.
Kronox Lab Sciences operates three manufacturing facilities in Vadodara, Gujarat, close to the seaports of Mundra, Kandla, Hazira, and Nhava Sheva. These facilities, covering 17,454 sq. m. with an installed capacity of 7,242 TPA, are certified with FSSC 22000 (Version 5), ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018. Additionally, some products have Kosher, Halal, GMP, and GLP certifications.
As of December 31, 2023, the company is researching 122 products and has served over 592 customers in the past three years, with 141 customers placing repeat orders. The company employs 212 people.
### Financial Information (Restated)
| Period Ended | 31 Dec 2023 | 31 Mar 2023 | 31 Mar 2022 | 31 Mar 2021 |
|———————|————–|————–|————–|————–|
| Assets | ₹66.96 crore | ₹54.03 crore | ₹56.79 crore | ₹37.65 crore |
| Revenue | ₹68.44 crore | ₹97.50 crore | ₹83.34 crore | ₹63.24 crore |
| Profit After Tax | ₹15.47 crore | ₹16.62 crore | ₹13.63 crore | ₹9.73 crore |
| Net Worth | ₹60.28 crore | ₹44.68 crore | ₹40.35 crore | ₹26.81 crore |
| Reserves and Surplus| ₹15.56 crore | ₹7.58 crore | ₹40.11 crore | ₹26.57 crore |
| Total Borrowing | – | ₹0.64 crore | ₹0.01 crore | – |
**Key Performance Indicators (as of Dec 31, 2023):**
– **Market Capitalization:** ₹504.61 crores
– **Return on Equity (ROE):** 25.66%
– **Return on Capital Employed (ROCE):** 33.15%
– **Return on Net Worth (RoNW):** 25.66%
– **Profit After Tax (PAT) Margin:** 22.6%
### IPO Objectives
The proceeds from the Kronox Lab Sciences IPO will be used for the following purposes:
1. **Offer for Sale by Promoter Selling Shareholders:** The issue will allow the promoter selling shareholders to sell up to 95,70,000 equity shares.
2. **Benefits of Listing:** The listing on the stock exchanges will enhance the company’s visibility and brand image, provide liquidity to existing shareholders, and create a public market for its equity shares in India.
