Kronox Lab Sciences Limited

About  Kronox Lab Sciences Limited

Incorporated in 2008, Kronox Lab Sciences Limited manufactures high purity speciality fine chemicals. These chemicals are used in different industries such as pharmaceutical formulations, active pharmaceutical ingredients (APIs), biotech, scientific research and lab testing, nutraceuticals, agrochemicals, personal care, metallurgy, and animal health. 

Its product portfolio includes 185+ products spanning across 11 different chemical families and ranging across grades of 10 mesh to 100 mesh. It also undertakes custom manufacturing to maintain the purity level specified by the client. Its three manufacturing facilities are located in Vadodara, Gujarat. 

The company’s products are sold domestically as well as in 20+ countries including the United States, Argentina, Mexico, Australia, Egypt, Spain, Turkey, United Kingdom, Belgium, United Arab Emirates, and China. The company’s revenue from exports has grown at a CAGR of 37.46% in the last three fiscal years. Between FY21 and Q3 FY24, it served more than 592 customers, 23% of which were repeat orders, and 353 of which were served in Q3 FY24. 

Between FY21 and FY23, it saw a CAGR rise of over 15% in its revenue from operations and 19% in its profit. Meanwhile, in the first nine months of FY24, the company's revenue declined 8.6% YoY, while its net profit rose 9.7% YoY compared to the same period of FY23. 

Nevertheless, the domestic consumption of chemicals is expected to grow due to growth in India’s agriculture, pharma, API, nutraceutical, food and beverages, and construction sectors, which could benefit the company. 

And now, Kronox Lab Sciences Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹130 crore comprising entirely of an offer for sale. The money raised from the offer will be paid to the existing shareholders. Its shares will be listed on the NSE and BSE.

Here are key details about the Kronox Lab Sciences IPO:

Financial snapshot

Here’s a quick look at Kronox Lab Sciences Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)

Strengths and opportunities

1. Products find application in diverse industries due to its wide range of options belonging to the family of citrates, carbonates, phosphates, acetates, sulphate, EDTA derivatives, chlorides, hydroxide, bromide, nitrites, and nitrates. 
2. Long standing customer relationships, 7 years being the average tenure of its relationship with its top 20 customers as of FY23. 
3. Operates in an industry with high entry and exit barriers due to long customer approval cycles and strict product standards. 
4. Strong focus on R&D with 122 products under various phases of research and development as of 31 December 2023.
5. Zero debt company with strong and consistent financial performance with EBITDA margins of 23% from FY21 to FY23, and 30% in Q3 FY24. 
6. Strategically located manufacturing facilities providing supply chain efficiencies due to its close proximity to several ports including Kandla, Mundra, Hazira and Nhava Sheva. 

Risks and threats

1. Required to meet domestic and international industry standards such as IP, BP, EP, JP, USP, FCC, LR, AR, GR and ACS, and any deviation may lead to rejection from its customers. 
2. Significantly dependent on industries such as pharmaceuticals, scientific research and Laboratory Testing as they accounted for 71% of its revenue from operations in Q3 FY24.
3. The average P/E ratio of its listed industry peers is 67.50 while its P/E ratio is at a premium of 31.63 times at the higher price band and 30.00 times at the lower price band. 
4. The company size is relatively small in terms of revenue from operations compared with other industry players and has a negligible market share in the chemical industry.
5. Installed capacity of its manufacturing units is not fully utilized as the average utilized capacity of its manufacturing units was 50% for Q3 FY24. Capacity utilization range between 67 to 78% in the last three fiscal years.   
6. Subject to forex risks as exports account for 25% of its revenue from operations as of Q3 FY24. 

Kronox Lab Sciences Limited IPO details

|Kronox Lab Sciences Limited IPO date

According to the offer document filed by the company with the SEBI, the Kronox Lab Sciences IPO’s opening date – in other words, the Kronox Lab Sciences IPO launch date – will be 3rd June 2024. The Kronox Lab Sciences IPO closing date is 5th June 2024. After this, investors will be updated about the allotment status on 6th June 2024.

Investors, who have been allotted shares, can expect them to be credited to their demat account on 7th June 2024. The Kronox Lab Sciences IPO listing date is 10th June 2024. The listing date is the date on which the shares of a company get listed on the bourses – NSE and BSE. 

|Kronox Lab Sciences Limited IPO Price Band

The IPO is an offer for sale. The Kronox Lab Sciences IPO price band has been set between ₹129 and ₹136 per share. Interested investors can choose a price within this band to apply for the IPO. 

The Kronox Lab Sciences IPO listing price will be determined on 10th June 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

|Kronox Lab Sciences Limited IPO Lot size

The Kronox Lab Sciences IPO details have been declared. The Kronox Lab Sciences IPO lot size is set at 110 shares and an investor can apply for a minimum of 1 lot. Meanwhile, the Kronox Lab Sciences IPO issue size is approx ₹130 crore.

How to pre-apply for the Kronox Lab Sciences Limited IPO?

You can pre-apply for the Kronox Lab Sciences Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription. 

Follow these steps to pre-apply for the IPO: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Kronox Lab Sciences Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Pre-Apply’
7. Accept the mandate on your UPI app

How to apply for the Kronox Lab Sciences Limited IPO?

If you are interested in this investment opportunity but unsure how to apply for the Kronox Lab Sciences Limited IPO, here we are listing out the steps for you. 

When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Kronox Lab Sciences Limited IPO on Upstox: 

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘Kronox Lab Sciences Limited IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

How to check the Kronox Lab Sciences Limited IPO allotment status?

When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes. 

Here’s a step-by-step guide on how to check the Kronox Lab Sciences Limited IPO allotment status:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover page, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, you will find the ‘View all’ option
5. Once you click on ‘View all’, you will be directed to the ‘IPO’ tab
6. In the ‘IPO’ tab, click on ‘My applications’ 
7. In ‘My applications’, under the History section, your Kronox Lab Sciences Limited IPO allotment status will be mentioned

Check Allotment Status

Open a demat account with Upstox to apply for the Kronox Lab Sciences Limited IPO

To apply for the Kronox Lab Sciences Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.

Here is a step-by-step guide on how to open a demat account with Upstox:

1. Click here to visit the demat account opening page on the Upstox website. 
2. Enter your phone number and other essential details to begin opening a demat account.
3. Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed. 
4. Complete the e-verification using the OTP sent to your registered mobile number. 

This is all it takes to open a demat account with Upstox. Easy and quick, right? 

Open Demat Account

Upstox – trading app to apply for the Kronox Lab Sciences Limited IPO

Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.

You can apply for the Kronox Lab Sciences Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.

In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.