Kronox Lab Sciences files draft papers with Sebi for IPO

Kronox Lab Sciences has filed draft-red herring prospectus (DRHP) with the capital markets regulator Sebi for its proposed initial public offering (IPO). The Vadodara-based company is a manufacturer of high-purity fine chemicals. The company is eyeing raising of Rs 150-180 crore via its initial stake sale.

According to the DRHP, the Kronox's IPO will include a fresh share sale of Rs 45 crore and an offer for sale (OFS) of up to 78,00,000 equity shares by its promoters namely Jogindersingh Jaswal, Ketan Ramani and Pritesh Ramani,  who will offload up to 26,00,000 equity shares each in the OFS.

The net proceeds from the fresh issue will be utilised for funding the working capital requirements and general corporate purposes, suggests the DRHP of the company. The proceeds from the offer-for-sale (OFS) would go to selling shareholders.

Kronox’s products are used in multiple industries for diversified uses such as pharmaceutical formulations, active pharmaceutical ingredients (API), biotech, scientific research and testing, nutraceuticals, personal care, agrochemicals, animal health, metallurgy and more. Kronox exports to more than 20 countries including the USA, United Kingdom, Mexico, Australia, Egypt and others.

Kronox has a high-purity speciality fine chemicals portfolio, with more than 185 products. The company has three manufacturing facilities and a research, development and testing (RDT) laboratory situated in Padra, Vadodara, Gujarat. It has served over 625 customers in the previous five financial years.

Kronox reported consolidated revenue from operations of Rs. 95.6 crore in the fiscal year 2022-23, while its Ebitda came in at Rs 22 crore with Ebitda margins of 23 per cent. Its profit after tax stood at Rs 16.6 crore with a PAT margin of 17 per cent. Pantomath Capital Advisors is the sole book-running lead manager. Shares of the company will be listed on both BSE and NSE.

Not more than 50 per cent of the offer shall be reserved for the allocation to qualified institutional buyers (QIBs), while non-institutional investors (NIIs) shall be given 15 per cent. Remaining 35 per cent shares shall be allocated for retail investors of the issue.

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