Kronox Lab Sciences Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹136
Per ShareLot Size
110 Shares
Minimum Investment
₹14,960
Issue Size
₹130.15 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Kronox Lab Sciences Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
99.98%
Issue Type
Book Building
ISIN
INE0ATZ01017
About the Company
Kronox Lab Sciences Limited manufactures High Purity Speciality Fine Chemicals for diversified end user industries. Its High Purity Speciality Fine Chemicals are used mainly as (i) reacting agents and raw material in the manufacturing of Active Pharmaceutical Ingredients (APIs); (ii) excipients in pharmaceutical formulations; (iii) reagents for scientific research and laboratory testing; (iv) ingredients in nutraceuticals formulations; (v) process intermediates and fermenting agents in biotech applications; (vi) ingredients in agrochemical formulations; (vii) ingredients in personal care products; (viii) refining agents in metal refineries; and (ix) ingredients in animal health products, amongst others. Its products are manufactured in accordance with industry standards like IP, BP, EP, JP, USP, FCC, LR, AR, GR and ACS in addition to custom manufacturing specifications, which differ from the industry standards, required by its customers in select cases. The Company manufactures High Purity Speciality Fine Chemicals of various grades in particle sizes ranging from 10 mesh to 100 mesh. The Company believes that its focus on product development, diversity in product offerings, meeting quality standards and customer specifications and continuous process improvement has led to repeat orders from its customers over the years.
Industry Overview
The chemical industry is an integral element of the global economy and plays a critical role in nearly every facet of modern life serving numerous sectors such as agriculture, construction, automotive, FMCG, consumer durables, electronics, healthcare, etc. The global chemical industry is continually evolving through technological advancements, market dynamics, and sustainability initiatives. The size of the Indian chemicals industry, excluding pharmaceuticals, in terms of the value of output in the year FY22 was around Rs. 9.10 lakh crores and 8.4% of the value of the output of the manufacturing sector at constant prices as against 7.9% in FY18. The chemical and chemical products except pharmaceuticals has registered a CAGR of 8.8% from FY18 to FY22. Furthermore, as per the Government of India's Department of Chemicals and Petrochemicals, India ranks 11th in the world exports of chemicals (excluding pharmaceutical products) and 6th in the world imports of chemicals (excluding pharmaceutical products).
Company History
Kronox Lab Sciences Limited was incorporated on November 18, 2008 as `Kronox Lab Sciences Private Limited', a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated November 18, 2008 issued by the Assistant Registrar of Companies, Gujarat, Dadra and Nagar Haveli. Subsequently, the Company was converted into a public limited company pursuant to a resolution passed by its shareholders at an extra-ordinary general meeting held on May 25, 2019 and a fresh certificate of incorporation dated June 11, 2019 was issued by the Registrar of Companies, Ahmedabad consequent upon conversion, recording the change in the name of the Company to `Kronox Lab Sciences Limited'.
Products & Services
- Kronox Lab Sciences Limited manufactures High Purity Speciality Fine Chemicals for diversified end user industries.
Growth Strategy
- Expand its product portfolio, increasing the supply of its products to its existing customers and tap new customers in existing and new geographies.
- Expand its capacity for existing products and diversifying into new products by setting up a new manufacturing facility.
- Explore newer applications for its existing products and developing new products that are in synergy with its current and future operations.
- Focus on import substitution and increasing exports.
- Improve cost management and operational efficiencies.
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 95,70,000* equity shares of face value of Rs. 10 each ("Equity Shares") of Kronox Lab Sciences Limited ("The Company" or "Issuer") for cash at a price of Rs. 136 per equity share (including a premium of Rs. 126 per equity share) ("Offer Price") aggregating to Rs. 130.15 crores ("Offer"). The offer comprises an offer for sale of 31,90,000* equity shares aggregating to Rs. 43.38 crores by Jogindersingh Jaswal, 31,90,000* equity shares aggregating to Rs. 43.38 crores by Ketan Ramani and 31,90,000* equity shares aggregating to Rs. 43.38 crores by Pritesh Ramani (collectively, "Promoter Selling Shareholders" and such offer for sale by the promoter selling shareholders, "Offer for Sale"). The offer constituted 25.79% of the post-offer paid-up equity share capital of the company. The offer price is 13.60 times the face value of the equity shares. *Subject to finalisation of basis of allotment
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Wide range of products finding applications in diversified end user industries.
- Long standing relationships with customers.
- High entry and exit barriers due to long customer approval cycles and strict product standards.
- Focus on R&D and Quality Control.
- Zero debt company with strong and consistent financial performance.
- The company's products are required to meet domestic and international industry standards. In the event of any deviation from these standards, its products may faces rejection from its customers, which may affect the reputation of the Company.
- If the company fails to execute its strategy to expand its business or the company's production capacity, its business and prospects may be materially and adversely affected.
- Its products are supplied in limited quantities for specific use by application industries. Any reduction in the requirement of its products may result in loss of business and may affect its financial performance and condition.
- Its top 20 products contributed 60.49%, 70.58%, 68.62%, 69.85% and 70.04% of its revenue for the nine months period ended December 31, 2023, December 31, 2022 and the Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively. Any change in demand its products of those products could significantly affect its revenues.
- The majority of sale of its products is concentrated in industries viz. Pharmaceuticals and Scientific Research and Laboratory Testing. Any change in demand or change in application or processes by its customers in these industries may lead to loss of revenues and profits.