Kronox Lab Sciences Files for IPO with SEBI

29 Nov 2023 , 12:04 PM

Speciality chemicals manufacturer Kronox Lab Sciences has filed draft papers for an initial public offering (IPO) with plans to raise around Rs 150 crore. The IPO is a pure OFS of 96 lakh equity shares by promoters.

The selling shareholders are promoters Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani. The company is currently 100% owned by these promoters, with Jaswal and Ketan Ramani each holding a 34.99% stake, and Pritesh Ramani holding 30%. The remaining shares are held by families of Jaswal and Ramani.

Proceeds from the fresh issue will primarily be allocated to working capital requirements, with the remaining set aside for general corporate purposes.

Kronox Lab Sciences, based in Gujarat, produces speciality fine chemicals used in various industries such as pharmaceuticals, biotech, agrochemicals, personal care, metal refineries, and animal health products. The company supplies over 185 products to customers in India and more than 20 countries.

In terms of financials, for the fiscal year ended March FY23, Kronox Lab recorded a 22% YoY growth in net profit at Rs 16.6 crore, and revenue increased by 16.2% to Rs 95.6 crore. EBITDA jumped 11.7% to Rs 22 crore, but the margin dropped to 23.01% due to rising input costs.

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

Pantomath Capital Advisors is the lead manager for the IPO, and KFin Technologies is the registrar.