Kronox Lab Science Limited is coming up with an IPO worth INR 130.15 crores, consisting of a fresh issue of shares worth INR 45 crores and an offer to sell 78 lakhs of existing equity shares. The company will use the funds raised to fund the company’s working capital requirements and general corporate purposes.
Kronox Lab Sciences Ltd IPO – Important Dates
| Kronox Lab Science IPO Date | June 3, 2024 to June 5, 2024 |
| Kronox Lab Science IPO Listing Date | June 10, 2024 |
| Kronox Lab Science IPO Price | INR 129-136 per share |
| Kronox Lab Science IPO Lot Size | 110 shares |
| Kronox Lab Science IPO Total Issue Size | INR 130.15 crores |
| Kronox Lab Science IPO Basis of Allotment | June 6, 2024 |
| Kronox Lab Science IPO Initiation of Refunds | June 7, 2024 |
| Kronox Lab Science IPO Credit of Shares to Demat | June 7, 2024 |
| Kronox Lab Science IPO Issue Type | Book Built Issue IPO |
| Kronox Lab Science IPO Listing At | BSE, NSE |
Kronox Lab Sciences IPO – Company Profile
Kronox Lab Science produces High Purity Speciality Fine Chemicals for diverse industries, including pharmaceuticals, agrochemicals, and more. Compliant with industry standards, their products range in particle sizes, fostering customer trust through quality, diversity, and continuous improvement, resulting in recurring orders.
They offer over 185 chemical products, including phosphates, sulfates, acetates, chlorides, citrates, nitrates, nitrites, carbonates, EDTA derivatives, hydroxides, succinates, gluconates, etc. They were distributed to customers in India and over 20 countries worldwide, showcasing their extensive international presence and diverse product range.
They have expanded globally, serving 20+ countries, with notable export revenue growth at a 37.46% CAGR from Fiscal 2021 to 2023. Their three facilities in Gujarat, certified and strategically located, have a total capacity of 7,242 TPA.
Kronox Lab Sciences IPO Review
Kronox Lab Sciences Ltd exhibits robust financial growth, increasing profitability, and strong financial management ahead of its IPO. With steady revenue growth, impressive RoNW, and low debt, it presents an attractive investment opportunity in the pharmaceutical or chemical sectors.
Revenue Growth:
Kronox Lab has shown steady revenue growth from ₹624.60 million in 2021 to ₹974.98 million in 2023. This consistent upward trend indicates strong demand for its products and effective market penetration.
Equity Growth:
Equity has also increased significantly from ₹268.14 million in 2021 to ₹446.79 million in 2023, suggesting that the company is effectively reinvesting its earnings and possibly raising additional capital to support its growth.
Expenses Management:
Expenses have grown alongside revenue, indicating that the company is scaling its operations. The proportionate increase in expenses suggests that Kronox Lab maintains a stable cost structure even as it expands.
Profitability:
Profit after tax has shown a healthy increase, from ₹97.30 million in 2021 to ₹166.17 million in 2023, reflecting the company’s growing efficiency and profitability.
Return on Net Worth (RoNW):
The RoNW has remained strong, peaking at 37.19% in 2023 from 36.29% in 2021. This indicates that the company is generating significant value for its shareholders relative to its equity.
Net Asset Value (NAV) per Equity Share:
The NAV per equity share has increased from ₹6.91 in 2021 to ₹12.04 in 2023, showcasing the growing intrinsic value of the company’s shares.
Diluted EPS:
The Diluted EPS has consistently improved, indicating an increasing profitability per share, from ₹2.40 in 2021 to ₹4.31 in 2023.
Asset and Liability Management:
Total assets have grown, though with a slight dip in 2023, suggesting strategic asset optimization. Total liabilities decreased in 2023, reflecting strong financial health and risk management.
Debt Equity Ratio:
The negligible debt equity ratio in 2023 highlights the company’s minimal reliance on debt, indicating a solid financial structure and lower financial risk.
Liquidity Ratios:
The current ratio has improved, suggesting better liquidity and short-term financial stability. The inventory turnover ratio has seen fluctuations but remains high, indicating efficient inventory management.
Kronox Lab Sciences Ltd IPO Fundamental Analysis
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in Million) | 624.60 | 833.40 | 974.98 |
| Equity (₹ in Million) | 268.14 | 403.53 | 446.79 |
| Expenses (₹ in Million) | 500.15 | 649.85 | 751.72 |
| Profit and Loss After Tax (₹ in Million) | 97.30 | 136.27 | 166.17 |
| RoNW (%) | 36.29 | 33.77 | 37.19 |
| NAV per Equity Share (₹) | 6.91 | 10.40 | 12.04 |
| Diluted EPS only (₹) | 2.40 | 3.49 | 4.31 |
| Total Assets (in million) | 376.46 | 567.88 | 540.34 |
| Total Liabilities (in million) | 108.31 | 164.35 | 93.55 |
| Debt Equity Ratio | 0.00 | 0.02 | 0.00 |
| Current Ratio | 3.30 | 3.21 | 3.85 |
| Inventory Turnover Ratio | 21.09 times | 25.45 times | 18.78 times |
Kronox Lab Sciences IPO Peer Comparison
Kronox Lab Sciences, with a robust Total Income of ₹974.98 million, competes favorably. Compared to peers like Tatva Chintan, Tanfac Industries, Neogen Chemicals, Sigachi Industries, and DMCC Speciality Chemical, Kronox exhibits strong financials, particularly in RoNW and EPS, making it a potentially attractive investment.
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Kronox Lab Sciences Limited | 974.98 | 10 | NA | 4.31 | 4.31 | 37.19 | 12.04 |
| Tatva Chintan Pharma Chem Limited | 4,293.56 | 10 | 72.13 | 20.52 | 20.52 | 8.84 | 232.25 |
| Tanfac Industries Limited | 3,828.70 | 10 | 39.10 | 56.27 | 56.27 | 30.46 | 184.74 |
| Neogen Chemicals Limited | 6,906.30 | 10 | 76.85 | 20.03 | 20.03 | 10.36 | 193.48 |
| Sigachi Industries Limited | 3,087.17 | 1 | 37.72 | 1.42 | 1.42 | 16.22 | 8.73 |
| DMCC Speciality Chemical Limited | 3,895.88 | 10 | 105.27 | 2.78 | 2.78 | 3.50 | 79.49 |
Kronox Lab Sciences IPO Objective
The main objective of Kronox Lab Science Limited’s IPO is to to allocate INR 30.40 crores in Fiscal 2025 for working capital and facilitating expansion. The remaining funds will support general corporate goals, covering sales, personnel, capital, and lawful purposes.
- Funding working capital requirements of the company: The business of the company involves significant working capital requirement. The company proposes to utilize INR 30.40 crores out of the Net Proceeds in Fiscal 2025 towards the company’s working capital requirements for planning to expand the product range, geographic presence, and capacity.
- General Corporate Purposes: The company plans to deploy balance funds towards the general corporate goal, including enhancing sales and marketing capabilities, covering personnel expenses, addressing corporate exigencies, funding capital expenditures, meeting general expenses, paying commissions, fees to consultants, and other lawful purposes.
Kronox Lab Sciences IPO Risks And Challenges
Kronox Lab Sciences risks involve manufacturing a diverse range of over 185 Purity Speciality Fine Chemicals, adhering to international standards. Custom manufacturing to meet specific purity levels is critical for various applications. The reliance on the top 20 products poses a risk to business sustainability.
- Kronox Lab Sciences manufactures over 185 Purity Speciality Fine Chemicals, adhering to international standards. Custom manufacturing is undertaken to meet specific purity levels. Any failure to meet standards may lead to product rejection, impacting reputation, sales, and profits.
- Their High Purity Speciality Fine Chemicals serve diverse applications in pharmaceuticals, research, nutraceuticals, biotech, agrochemicals, personal care, metallurgy, and animal health. Meeting stringent international standards is crucial. The inability to achieve varied purity levels for custom manufacturing may result in customer loss, impacting revenues and profitability.
- They produce a diverse range of over 185 High Purity Speciality Fine Chemicals for various industries. Top 20 products constitute significant revenue, exposing us to demand risks. A decline in demand for these products may impact the business, financial condition, and operations.
- Establishing a new unit at GIDC, Dahej-II is crucial for Kronox Lab Science’s growth. Challenges in successfully operationalizing the unit by FY 2025 could hinder capacity expansion, impacting financial condition and profitability.
- Due to groundwater contamination issues, GPCB restricts Unit –III expansion in Padra, Gujarat. Effluent treatment limitations may affect manufacturing specific products. Acquiring land in GIDC, Dahej–II for expansion. Continued GPCB restrictions may hinder Unit –III operations, impacting business and financial results.
Kronox Lab Sciences Ltd IPO – Industry & Market Potential
The global chemical industry, integral to various sectors, has grown substantially, reaching USD 4,307 billion in sales by CY21. The top 10 countries, led by China, dominate with 40.2%, followed by Europe, the USA, and Japan. India ranks sixth.
In FY21, India’s chemical sector (excluding pharmaceuticals) contributed 1.48% to Gross Value Added (GVA), with a CAGR of 6.67%. The industry’s output value was around Rs.9.87 crores, showing 7.93% growth from FY16 to FY21. India ranks 11th in global chemical exports and 6th in imports, with USD 46.9 billion and USD 79.4 billion in CY21, respectively.
India’s significant chemicals production rose at a 4.61% CAGR, reaching 12,743 thousand metric tonnes in FY22, mainly driven by a 4.3% CAGR in alkali chemicals production.
Kronox Lab Sciences Ltd IPO – Type of Offer
Kronox Lab Science plans a fresh issue of shares, seeking INR 45 crores to augment the capital needs of the company. Additionally, the company proposes an offer for sale, intending to sell 78 lakhs existing shares.
1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 45 crores. The company intends to utilize the proceeds from the fresh issue for funding working capital requirements of the company and general corporate purposes.
2. Offer for sale: Kronox Lab Science is offering to sell 78 lakhs of existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in million) |
| Jogindersingh Jaswal | 26,00,000 |
| Ketan Ramani | 26,00,000 |
| Pritesh Ramani | 26,00,000 |
Kronox Lab Sciences Ltd IPO Offer Size
The offer size of Kronox Lab Science Limited’s IPO is INR 130.15 crores. This comprises a new issuance of shares totaling INR 45 crores and the sale of 78 lakhs of existing equity shares. The funds generated will be utilized to fund the company’s working capital requirements and general corporate purposes.
Kronox Lab Sciences Ltd IPO Allotment Structure
Kronox Lab Science allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations.
- Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
- Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
- Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for a Kronox Lab Science IPO?
To apply for the Kronox Lab Science IPO through Alice Blue, you would typically follow these steps:
- Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Kronox Lab Science IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for Kronox Lab Science Limited’s IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Kronox Lab Science IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Kronox Lab Science IPO: If you have applied for multiple IPOs, there might be a dropdown menu or lists where you can select the IPO you are interested in. Select the Kronox Lab Science IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Kronox Lab Science IPO:
Registrar’s Website: Visit the website of KFin Technologies Limited, the registrar of the Kronox Lab Science IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Kronox Lab Science IPO Offer Registrar
The registrar for the Kronox Lab Science IPO is KFin Technologies Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
KFin Technologies Limited
Selenium Tower B, Plot No. 31, 32
Gachibowli, Financial District
Nanakramguda, Serilingampally
Hyderabad, 500 032
Telangana, India
Tel: +91 40 6716 2222
E-mail: [email protected]
Website: www.kfintech.com
Kronox Lab Science IPO FAQs
The allotment date of the Kronox Lab Science IPO is June 6, 2024.
The price band of the Kronox Lab Science IPO is INR 129-136 per share.
Kronox Lab Science plans to launch an IPO worth INR 130.15 crores. This comprises a new share issuance of INR 45 crores and the sale of 78 lakhs of existing equity shares. The funds generated will be utilized to fund the company’s working capital requirements and general corporate purposes.
The listing date of the Kronox Lab Science IPO is June 10, 2024.
