Thursday, April 18, 2024

Speciality Fine Chemicals Company, Kronox Lab Sciences gets SEBI nod to float IPO

Vadodara based Kronox Lab Sciences (“Kronox” or “Company”), manufacturer of high-purity speciality fine chemicals, has received capital markets regulator Sebi's nod to launch Initial Public Offering (IPO).

Under the Offer for Sale, up to 96 lakhs equity shares will be offloaded jointly by the promoters namely Jogindersingh Jaswal, Ketan Ramani and Pritesh Ramani. The offer represents upto 26 per cent of the paid-up equity share capital of Kronox Lab Sciences.

Kronox’s High Purity Speciality Fine Chemicals portfolio has more than 185 products. The products are used mainly for applications across pharmaceuticals, nutraceuticals, biotech, food, animal health, scientific research, agrochemicals, personal care, amongst others. Kronox exports to more than 20 countries with major exports to USA, United Kingdom, Mexico, Australia, Egypt.

The Company has 3 manufacturing facilities and Research, Development and Testing (“RDT”) laboratory, situated in Vadodara, Gujarat. Additionally, the Company has acquired land at Dahej, Gujarat to set up a new manufacturing plant. The Company has more than 120 products under various phases of research and development.

Completely debt free business, Kronox works at more than 15% Post tax profit margin. Interestingly, Kronox has a formidable track record of two buy backs and a bonus issue in the previous five financial years.

For Fiscal 2023, Kronox generated consolidated revenue from operations of Rs. 95.6 crores growing at CAGR of 23.70% over Fiscal 2021 to 2023. The Company had EBITDA of Rs. 22.0 crores and EBITDA margin of 23.01%. The Company’s profit after tax for Fiscal 2023 was Rs. 16.6 crores with PAT margin of 17.04%. The Company’s Return on Equity (RoE) and Return on Capital Employed (RoCE) stood at 37.2% and 49.9% respectively for Fiscal 2023.

Kronox Lab Sciences, which filed draft red herring prospectus dated January 25, 2024 with the market regulator Sebi, obtained its observation letter on April 12, 2024, an update with the Securities and Exchange Board of India (Sebi) showed.

Pantomath Capital Advisors Private Limited is the sole book-running lead manager. The Company’s equity shares are proposed to be listed on the BSE and NSE.

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