Kronox Lab Sciences IPO opens on June 3: Price band to issue size – Here are the key things to know

Kronox Lab Sciences, a Vodadora-based speciality chemical firm, will launch an initial public offering (IPO) on Monday, June 3. The subscription window will remain open for three days, ending on Wednesday, June 5.

The price band for the IPO has been set in the range of ₹129 to ₹136 per equity share, with each of them carrying a face value of ₹10. The minimum lot size for investment for retail investors is 1 lot comprising 110 shares, which translates into a minimum investment of ₹14,960.

The offer comprises only a fresh issuance of shares, with no offer-for-sale (OFS) component. The company's promoters – Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani – would be offloading a total of 95.7 lakh equity shares. This means that Kronox would mop up ₹130.1 crore at the upper end of the price band.

The anchor investment round will be conducted on Friday, May 31, ahead of the IPO launch.

As per the draft red herring prospectus (DRHP), the offer represents up to 26% of Kronox Lab Sciences' paid-up equity share capital.

The book-running lead manager for the proposed offer is Pantomath Capital Advisors Private Ltd, whereas the registrar is KFin Technologies. The company intends to list its shares on the National Stock Exchange (NSE) and the BSE. The listing date is likely to be June 10, reports said.

Kronox Lab Sciences IPO share allotment

Out of the total shares on offer, the maximum portion of 50% has been reserved for qualified institutional buyers (QIB), followed by 35% for retail investors and 15% for non-institutional institutional investors (NII).

Kronox Lab Sciences IPO GMP

The grey market premium or GMP, which indicates the willingness of investors to purchase the shares ahead of its listing, was hovering around ₹80, according to investorgrain.com. This means that the shares could list at around ₹216, which is the sum of the upper end of the IPO price band and the GMP. This would result in listing day gain of 58.8% for the IPO share allottees.

About Kronox Lab Sciences

Kronox manufactures high-purity specialty fine chemicals. Its products are used in various industries for diversified uses like pharmaceutical formulations, active pharmaceutical ingredients, scientific research and testing, biotech, nutraceuticals, agrochemicals, personal care, metallurgy, and animal health.

The company has three manufacturing plants and a Research, Development and Testing (RDT) laboratory in Vadodara. It has also acquired a parcel of land at Dahej to set up a new manufacturing unit.

The company, which has over 120 products under various phases of RDT, exports its products to more than 20 countries, including the USA, the UK, Australia, Mexico and Egypt.

In FY2023, Kronox's consolidated revenue from operations stood at ₹95.6 crore, reflecting a compound annual growth rate (CAGR) of 23.70% over FY2021. The firm had EBITDA (Earnings before interest, taxes, depreciation, and amortisation) of ₹22 crore with an EBITDA margin of 23.01%. The profit after tax was reported at ₹16.6 crore.

Kronox Lab Sciences Financial Results

How much stake the promoters hold?

The promoters – Jogindersingh Jaswal, Ketan Ramani and Pritesh Ramani – collectively hold 99.98% stake in the company before the IPO.

What is the IPO objective?

According to Kronox Lab Sciences, it will use the money raised via the public issue for achieving the benefits of listing on the stock exchanges such as enhancing the visibility and brand image and providing liquidity to its existing shareholders.

To know more about IPOs listing, schedule and upcoming IPOs, click here.