Kronox Lab Sciences Limited is all set to launch its Initial Public Offering (IPO) on June 3, 2024, with a price band fixed between Rs 129 and Rs 136 per share.
This significant milestone marks the company’s first public issue of equity shares, aiming to list on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).
IPO Details
The IPO is an Offer-for-Sale (OFS) only, which means that it involves the sale of shares by existing shareholders, and no new shares will be issued by the company.
A total of 95.7 lakh equity shares are being offered through this IPO. As a result, all proceeds from the sale will go directly to the selling shareholders rather than the company.
The selling shareholders in this OFS are the promoters of Kronox Lab Sciences: Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani. Each of these promoters is offering up to 31.9 lakh equity shares.
Key Dates
The IPO will open for public subscription on June 3, 2024, and will close on June 5, 2024. However, the anchor book, which is a portion of the IPO reserved for institutional investors, will open a bit earlier, on May 31, 2024.
Company Overview
Kronox Lab Sciences Limited was incorporated on November 18, 2008, as a private limited company and later converted into a public limited company on June 11, 2019.
Primary Business:
The company specializes in the manufacture of high-purity specialty fine chemicals that are used across various industries.
These chemicals are integral in the production of pharmaceuticals, scientific research, nutraceuticals, biotech applications, agrochemicals, personal care products, metallurgy, and animal health products.
Their product portfolio includes over 185 items. These include phosphates, sulphates, acetates, chlorides, citrates, nitrates, nitrites, carbonates, EDTA derivatives, hydroxides, succinates, and gluconates.
The products are supplied to customers in India and more than 20 countries globally.
Financial Highlights:
- Equity Share Capital: ₹371.04 million as of December 31, 2023
- Net Worth: ₹602.82 million as of December 31, 2023
- Revenue from Operations: ₹676.86 million for the nine months ended December 31, 2023
- Net Profit: ₹154.69 million for the nine months ended December 31, 2023
- Earnings per Share: ₹4.17 for the nine months ended December 31, 2023
Objectives of the IPO
The primary objective of the IPO is to achieve the benefits of listing the equity shares on the stock exchanges.
Listing will enhance the company’s visibility, improve its brand image, and provide liquidity to its shareholders. It will also create a public market for the company’s equity shares in India.
It is important to note that Kronox Lab Sciences will not receive any proceeds from the OFS. All the proceeds will go to the promoter selling shareholders in proportion to the shares they sell as part of the offer.
Industry Overview:
The chemical industry plays a crucial role in the global economy, serving numerous sectors such as agriculture, construction, automotive, FMCG, consumer durables, electronics, and healthcare.
The Indian chemicals industry, excluding pharmaceuticals, had an output value of approximately Rs 9.10 lakh crores in FY22, representing 8.4% of the manufacturing sector’s output at constant prices.
India ranks 11th globally in the export of chemicals (excluding pharmaceuticals) and 6th in the import of chemicals (excluding pharmaceuticals), highlighting its significant presence in the global chemical market.
