The initial public offering (IPO) price band for Kronox Lab Sciences Limited has been set at ₹129 to ₹136 per equity share, with a face value of ₹10. The subscription period for the Kronox Lab Sciences IPO is set for Monday, June 3, and it will end on Wednesday, June 5. On Friday, May 31, the allocation to anchor investors for the Kronox Lab Sciences IPO is scheduled.
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The IPO consists only of an offer-for-sale (OFS) of 95.7 lakh equity shares; there is no fresh issue component. The selling shareholders will so get the whole offering proceeds.
The promoters Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani are among the selling shareholders of the OFS; together, they are offloading 31.9 lakh shares.
Pantomath Capital Advisors Pvt Ltd is the book running lead manager and Kfin Technologies Limited is the registrar for the Kronox Lab Sciences initial public offering.
Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.
Kronox Lab Sciences IPO Promoters
Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani are the company’s promoters. The promoters together own 3,70,94,280 equity shares in the firm as of the Red Herring Prospectus date, which accounts for 99.98% of the pre-offer issued, subscribed, and paid-up equity share capital of the business.
Kronox Lab Sciences IPO Peers
Tatva Chintan Pharma Chem Ltd (P/E of 57.57), Tanfac Industries Ltd (P/E of 39.15), Neogen Chemicals Ltd (P/E of 77.55), Sigachi Industries Ltd (P/E of 46.64), and DMCC Speciality Chemical Ltd (P/E of 116.57) are the company’s listed peers.
Kronox Lab Sciences IPO Business
High Purity Specialty Fine Chemicals are produced by the firm for a variety of end user sectors. High Purity Speciality Fine Chemicals are primarily utilised as (i) reacting agents and raw materials in the production of Active Pharmaceutical Ingredients (APIs); (ii) excipients in pharmaceutical formulations; (iii) reagents for scientific research and laboratory testing; (iv) ingredients in formulations for nutraceuticals; (v) 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, among other uses.
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Kronox Lab Sciences IPO Industry
With the exception of pharmaceuticals, the size of the Indian chemicals industry was around Rs. 9.10 lakh crores in terms of production value in FY22, or 8.4% of the manufacturing sector’s output at constant prices, compared to 7.9% in FY18. With the exception of pharmaceuticals, the chemical and chemical product industry saw a CAGR of 8.8% from FY18 to FY22. In addition, India is ranked sixth in the world for chemical imports and eleventh for chemical exports (excluding pharmaceutical goods), according to the Department of Chemicals and Petrochemicals of the Government of India.
Kronox Lab Sciences IPO Products
The firm supplies consumers in India and over 20 other countries with its variety of over 185 goods, which include items related to the phosphate, sulphate, acetate, chloride, citrate, nitrates, nitrites, carbonate, EDTA derivatives, hydroxide, succinate, and gluconate families.
Kronox Lab Sciences IPO in-house research
The business has established an internal research, development, and testing laboratory (referred to as the “RDT Laboratory”) to create new goods and test them against client or industry criteria. Unit I has a specialised RDT Laboratory whose purpose is to use cutting-edge tools and technologies to adopt a performance-oriented strategy. Their RDT Laboratory has all the tools needed to conduct the tests needed to create the products. Sixteen scientific graduates and postgraduates make up their RDT team, which conducts a variety of tests to make sure the items’ quality satisfies industry standards and consumer expectations.
Kronox Lab Sciences IPO new products
The following are some of the new products that are being suggested for launch: gluconate, succinate, and glycinate.
Kronox Lab Sciences IPO Financials
From the fiscal year ending on March 31, 2023, to March 31, 2022, Kronox Lab Sciences Limited had a rise in revenue of 16.99% and profit after tax (PAT) of 21.94%.
Kronox Lab Sciences IPO Key Risks
Some of the key risks are as follows;
Products from the firm must adhere to national and international industry standards. Any departure from these guidelines might result in consumers rejecting their items, which could harm the company’s image.
The company’s operations and prospects might be considerably and negatively impacted if they are unable to carry out their plan to increase their business or their manufacturing capacity.
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Lock-in of equity shares allotted to anchor investors
Half of the equity shares allotted to the anchor investors will be locked in for 90 days starting on the day of allocation, and the other 50% will be locked in for 30 days starting on that date.
