The initial share sale of Kronox Lab Sciences is going to hit Dalal Street on June 3, with a price band at Rs 129-136 per share. This will be the first IPO in the month of June, while the number of IPOs so far in 2024 have been 30 excluding Bharat Highways Infrastructure Investment Trust InvIT.
The IPO comprises solely an offer-for-sale (OFS) of 95.7 lakh equity shares with no fresh issue component. Therefore, the entire issue proceeds will go to the selling shareholders.
Promoters Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani are the selling shareholders in the OFS, offloading 31.9 lakh shares each.
The public issue will close on June 5, while the anchor book of the IPO will be opened for a day on May 31.
The Gujarat-based company manufactures high purity speciality fine chemicals for diversified end user industries such as pharmaceutical, agrochemical, personal care, metal refineries, and animal health products.
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It offers more than 185 products including phosphate, sulphate, acetate, chloride, citrate, nitrates, nitrites, carbonate, EDTA derivatives, hydroxide, succinate, and gluconate which are supplied to customers in India and more than 20 countries globally.
Financial Performance
Kronox Lab, which competes with Tatva Chintan Pharma Chem, Tanfac Industries, Neogen Chemicals, Sigachi Industries, and DMCC Speciality Chemical has recorded decent financial performance in the recent years. Profit grew 21.9 percent year-on-year to Rs 16.6 crore, with revenue from operations increasing 16.2 percent to Rs 95.6 crore in the financial year ended March 2023.
EBITDA (earnings before interest, tax, depreciation and amortisation) for FY23 rose 11.7 percent to Rs 22 crore but margin fell by 90 bps to 23 percent for the year compared to FY22.
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For nine months ended December FY24, profit grew by 9.8 percent year-on-year to Rs 15.5 crore, but revenue fell 8.7 percent to Rs 67.7 crore in the same period. Its EBITDA for 9MFY24 increased by 14.4 percent to Rs 20.5 crore with margin expansion of 610 bps at 30.2 percent compared to nine-month period ended December FY23. It has reduced its finance cost to zero as against Rs 0.09 crore during the same period.
Furthermore, the company will finalise the basis of allotment of IPO shares by June 6, and the successful investors will get shares credited to their demat accounts by June 7.
Kronox Lab shares will be available for trading on the bourses effective June 10.
Pantomath Capital Advisors is the sole book running lead manager to the issue, while KFin Technologies is the registrar to the offer.
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