Kronox Lab Sciences gets SEBI nod for an IPO

Vadodara-based Kronox Lab Sciences (“Kronox” or “Company”), manufacturer of high-purity specialty fine chemicals, has received the nod from capital markets regulator Sebi to launch an Initial Public Offer (IPO).

Under the sale offer, a maximum of 96 lakhs shares will be sold jointly by the promoters namely Jogindersingh Jaswal, Ketan Ramani and Pritesh Ramani. The offer represents up to 26 percent of the paid-up share capital of Kronox Lab Sciences.

Kronox’s High Purity Specialty Fine Chemicals portfolio includes more than 185 products. The products are primarily used for applications in pharmaceuticals, nutraceuticals, biotech, nutrition, animal health, scientific research, agricultural chemicals and personal care, among others. Kronox exports to more than 20 countries with major exports to the US, UK, Mexico, Australia and Egypt.

The company has three manufacturing facilities and a research, development and testing laboratory (“RDT”) located in Vadodara, Gujarat. In addition, the company has acquired land in Dahej, Gujarat, to set up a new factory. The company has more than 120 products in various stages of research and development.

Kronox is a completely debt-free company and operates with a profit margin of more than 15% after taxes. Interestingly, Kronox has a formidable track record of two buybacks and a bonus issue in the last five financial years.

For fiscal year 2023, Kronox generated consolidated revenue from operations of Rs. 95.6 crores growing at a CAGR of 23.70% over the financial year 2021 to 2023. The company had an EBITDA of Rs. 22.0 crores and an EBITDA margin of 23.01%. The company’s profit after tax for the financial year 2023 was Rs. 16.6 crores with a PAT margin of 17.04%. The company’s Return on Equity (RoE) and Return on Capital Employed (RoCE) stood at 37.2% and 49.9% respectively for FY 2023.

Kronox Lab Sciences, which had filed a draft prospectus with market regulator Sebi on January 25, 2024, received its observation letter on April 12, 2024, an update from the Securities and Exchange Board of India (Sebi) showed.

Pantomath Capital Advisors Private Limited is the sole book-running lead manager. The shares of the Company are proposed to be listed on the BSE and NSE.

Source: stock bulls

Keywords

KronoxLabSciences
Fundraising
IPO
SEBI
Approval