Kronox Lab Sciences files draft papers for IPO with SEBI

Kronox Lab Sciences is a speciality chemicals manufacturer.

Speciality chemicals manufacturer Kronox Lab Sciences has filed draft papers to raise funds through an initial public offering (IPO). The firm is likely to mobilise around Rs 150 crore through the offer, sources told Moneycontrol.

The IPO will comprise a fresh issue of shares worth Rs 45 crore and an offer-for-sale (OFS) of 78 lakh equity shares by promoters, the draft red herring prospectus filed with the Securities and Exchange Board of India (Sebi) on November 24 says.

Promoters Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani are the selling shareholders. The company is 100 percent owned by these promoters, with Jaswal and Ketan Ramani holding a 34.99 percent stake each. Pritesh Ramani holds 30 percent and the rest of the shares are held by families of Jaswal and Ramani.

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The Gujarat-based company will spend Rs 30.4 crore from the fresh issue proceeds for its working capital requirements and the remaining will be kept aside for general corporate purposes.

Speciality fine chemicals manufactured by Kronox find use in diverse industries such as pharmaceutical, biotech, agrochemical, personal care, metal refineries and animal health products.

The company supplies more than 185 products, including phosphate, sulphate, acetate, chloride, citrate, nitrates, nitrites, carbonate, EDTA derivatives, hydroxide, succinate, and gluconate, to customers in India and more than 20 countries.

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On the financials front, Kronox Lab recorded a 22 percent on-year growth in net profit at Rs 16.6 crore for year ended March FY23. Revenue increased by 16.2 percent to Rs 95.6 crore during the period.

EBITDA (earnings before interest, tax, depreciation, and amortisation) jumped 11.7 percent to Rs 22 crore from the previous year but the margin dropped 94 basis points to 23.01 percent during the period with rising input cost.

Net profit in the quarter ended June FY24 stood at Rs 6.38 crore on revenue of Rs 25.95 crore. It is a debt-free company.

Pantomath Capital Advisors is the lead managers to the issue, while KFin Technologies is the registrar.