Kronox Lab Sciences Files Draft Papers for IPO with SEBI, Aims to Raise Rs 150 Crore

Speciality chemicals manufacturer Kronox Lab Sciences has filed draft papers to raise funds through an initial public offering (IPO), with an aim to mobilize approximately Rs 150 crore, according to sources familiar with the matter. The IPO will consist of a fresh issue of shares worth Rs 45 crore, as well as an offer-for-sale (OFS) of 78 lakh equity shares by the company’s promoters.

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The draft red herring prospectus was submitted to the Securities and Exchange Board of India (SEBI) on November 24. Promoters Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani are the selling shareholders, collectively owning 100 percent of the company. Jaswal and Ketan Ramani each hold a 34.99 percent stake, while Pritesh Ramani holds 30 percent, with the remaining shares held by families of Jaswal and Ramani.

Proceeds from the fresh issue, which amounts to Rs 45 crore, will primarily be allocated towards meeting the company’s working capital requirements, with the remainder reserved for general corporate purposes.

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Kronox Lab Sciences specializes in manufacturing fine chemicals that serve various industries, including pharmaceuticals, biotechnology, agrochemicals, personal care, metal refineries, and animal health products. The company offers a wide range of products, including phosphate, sulphate, acetate, chloride, citrate, nitrates, nitrites, carbonate, EDTA derivatives, hydroxide, succinate, and gluconate, supplying them to customers in India and more than 20 countries.

In terms of financial performance, Kronox Lab Sciences reported a 22 percent year-on-year growth in net profit, totaling Rs 16.6 crore for the fiscal year ending March FY23. During the same period, the company’s revenue increased by 16.2 percent to reach Rs 95.6 crore.

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The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) also witnessed growth, rising by 11.7 percent to Rs 22 crore from the previous year. However, the margin saw a 94 basis point decrease, settling at 23.01 percent due to rising input costs.

Kronox Lab Sciences IPO 1

For the quarter ending June FY24, Kronox Lab Sciences recorded a net profit of Rs 6.38 crore on a revenue of Rs 25.95 crore. Notably, the company is debt-free.

Pantomath Capital Advisors has been appointed as the lead managers for the upcoming IPO, while KFin Technologies will serve as the registrar.

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