Kronox Lab Sciences Ltd IPO Timeline

Kronox Lab Sciences Ltd IPO opens on 03-Jun-2024, and closes on 05-Jun-2024. The Kronox Lab Sciences Ltd IPO bid date is from 03-Jun-2024 to 05-Jun-2024. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.

Event Date
Kronox Lab Sciences Ltd IPO Opening Date 03-Jun-2024
Kronox Lab Sciences Ltd IPO Closing Date 05-Jun-2024
Basis of Allotment 06-Jun-2024
Initiation of Refunds 07-Jun-2024
Credit of Shares to Demat 07-Jun-2024
Kronox Lab Sciences Ltd IPO Listing Date 10-Jun-2024

Kronox Lab Sciences Ltd IPO Lot Size

Kronox Lab Sciences Ltd IPO lot size is 110 shares. A retail-individual investor can apply for up to 13 lots (1430 shares or 194480).

Application Lots Shares Amount
Minimum 1 110 ₹14960
Maximum 13 1430 ₹194480

Kronox Lab Sciences Ltd IPO Details

Kronox Lab Sciences Ltd IPO Date 03-Jun-2024 to 05-Jun-2024
Kronox Lab Sciences Ltd IPO Face Value Shares of ₹10 per share
Kronox Lab Sciences Ltd IPO Price ₹129 to ₹136 per share
Kronox Lab Sciences Ltd IPO Lot Size 110
Issue Size Shares of ₹10 (aggregating up to ₹130.15 Cr)
Fresh Issue -
Offer for Sale Shares of ₹10 (aggregating up to ₹130.15 Cr)
Issue Type Book Built Portion
Listing At BSE, NSE
QIB Shares Offered Not more than 1914000
Retail Shares Offered Not less than 3349500
NII (HNI) Shares Offered Not less than 1435500
Company Promoters Jogindersingh Jaswal, Ketan Ramani, Pritesh Ramani.

Objects of the Issue

The company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • 1 Funding working capital requirements of the company
  • 2 General corporate purposes

Company Financials

Kronox Lab Sciences Ltd Financial Information (Restated)

Period Ended Total Assets Total Revenue Profit After Tax
03-2024 73.99 91.44 21.35
03-2023 54.03 97.50 16.40
03-2022 56.79 83.34 13.63
Amount in ₹ Crore
  • Wide range of products finding applications in diversified end user industries.
  • Long standing relationships with customers.
  • High entry and exit barriers due to long customer approval cycles and strict product standards.
  • Focus on R&D and Quality Control.
  • Zero debt company with strong and consistent financial performance.
  • Strategically located manufacturing facilities providing supply chain efficiencies.
  • Experienced Promoters and Senior Management with extensive domain knowledge.
  • The company's products are required to meet domestic and international industry standards. In the event of any deviation from these standards, its products may faces rejection from its customers, which may affect the reputation of the Company.
  • If the company fails to execute its strategy to expand its business or the company's production capacity, its business and prospects may be materially and adversely affected.
  • Its products are supplied in limited quantities for specific use by application industries. Any reduction in the requirement of its products may result in loss of business and may affect its financial performance and condition.
  • Its top 20 products contributed 60.49%, 70.58%, 68.62%, 69.85% and 70.04% of its revenue for the nine months period ended December 31, 2023, December 31, 2022 and the Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively. Any change in demand its products of those products could significantly affect its revenues.
  • The majority of sale of its products is concentrated in industries viz. Pharmaceuticals and Scientific Research and Laboratory Testing. Any change in demand or change in application or processes by its customers in these industries may lead to loss of revenues and profits.
  • Any failure in developing new High Purity Speciality Fine Chemicals may affect its future growth and business.
  • Its top 10 customers contributed 45.22%, 53.58%, 50.68%, 56.18% and 56.32% of its revenue for the nine months periods ended December 31, 2023, December 31, 2022 and the Fiscals 2023, 2022 and 2021 respectively. Further, the Company has not entered into any long-term agreements with its customers for purchasing our products. The company is subject to uncertainties in demand and there is no assurance that its customers will continue to purchase its products. This could impact the business and financial performance of the Company.
  • The average P/E ratio of its listed industry peers is 67.50 while P/E ratio of the Company is at premium of 31.63 times at the higher price band and 30.00 times at the lower price band.
  • The company is dependent on third party transportation and logistics service providers for delivery of its products to its customers as well as raw materials to its Manufacturing Facilities. Any delay in delivery of its products or raw materials or increase in the charges of these entities could adversely affect its business, results of operations and financial condition. The company also may be exposed to the risk of theft, accidents and/or loss of its products in transit.
  • The company had a high current ratio for nine months period ended on December 31, 2023 and Fiscals 2023, 2022 and 2021 and its cannot assure you that the company will be able to prudently manage its short term fund requirements and efficiently utilize its high cash reserves in business operations. Consequently, the company may not be able to maintain an optimum level of current ratio in the future.
  • Its top 10 suppliers contributed 44.22%, 45.54%, 42.13%, 42.89% and 46.61% of its total purchase for the nine months periods ended December 31, 2023, December 31, 2022 and the Fiscals 2023, 2022 and 2021, respectively. The Company has not entered into long-term agreements for the supply of raw materials with its suppliers. In case of shortage of raw materials or if the company is unable to procure the raw materials from other sources or in timely manner, its may be unable to meet its production schedules for its products and deliver such products to its customers in timely manner, which may adversely affect its customer relations and reputation.
  • The Company will not receive any proceeds from the Offer for Sale by the Promoter Selling Shareholder.
  • Its Promoters and Promoter Group will continue to retain significant control in the Company after the Offer, which will allow them to influence the outcome of matters submitted to shareholders for approval. Such a concentration of ownership may also have the effect of delaying, preventing or deterring a change in control.
  • Its success largely depends upon the services of the company's Directors, Senior Management Personnel and Key Managerial Personnel (KMP) and its ability to attract and retain them. Demand for Senior Management Personnel and Key Managerial Personnel (KMP) in the industry is intense and its inability to attract and retain its Senior Management Personnel and Key Managerial Personnel may affect the operations of the Company.
  • The size of the Company is relatively small in terms of revenue from operations when compared with other industry players and listed peers. Further, the company has a negligible market share in the chemical industry. Its inability to successfully implement its growth strategies would result in the Company remaining small compared to other industry players.
  • The company may not be able to expand its production capacity and products manufactured at Unit - III as GPCB has restricted any such expansion in the area where its Unit - III is situated i.e. Padra region, near Vadodara, Gujarat due to ground water contamination related issues. The company is therefore limited to the manufacturing of only certain products at its Unit - III that are viable under such restrictions. Hence, there has been a decrease in the capacity utilization for aforementioned periods.
  • Its may not be able to achieve the level of purity required by its customer and fail to supply the required product. Its customers may be forced to explore other alternatives by placing orders with its competitors leading to loss of its customers.
  • The company may not be able to achieve the level of purity required by its customer and fail to supply the required product. Its customers may be forced to explore other alternatives by placing orders with its competitors leading to loss of its customers.
  • Majority of its exports is to the USA out of its total exports. Any significant social, political or economic disruptions in the USA or adverse changes in the trade and tariff policies could disrupt its exports to the USA and may adversely affect the company's business, operations and financial condition.
  • The company faces foreign exchange risks that could adversely affect its results of operations and cash flows.
  • Customer approvals of products in its business take a long time and involve high cost of development. In the event of delay or non-receipt of approval of customers for product may result into loss of its investment and resources in the product development.
  • Its business is dependent on its Manufacturing Facilities which are concentrated and located at Vadodara, Gujarat. Any shutdown of operations of its Manufacturing Facilities may have an adverse effect on its business and results of operations.
  • The company is subject to certain risks consequent to its operations involving the manufacture, usage and storage of chemical substances.
  • Its Group Company viz. P. K. Chlorochem Private Limited and one of its Promoter Group entities viz. Ketan Vinodchandra Ramani (HUF) are engaged in the business of trading in commercial chemicals. This may be a potential source of conflict of interest for us and which may have an adverse effect on its business, financial condition and results of operations.
  • The Company has acquired land alongwith factory shed of its Unit I and Unit III from its Promoter Group entities who are related parties. However, there can be no assurance that the company could not have achieved more favourable terms had such transaction not been entered with Promoter Group entities.
  • Its business operations requires significant working capital. If the company experience insufficient cash flows to meet required payments on its working capital requirements, there may be an adverse effect on the results of its operations.
  • Its may also faces surplus production of a particular product due to various reasons including inaccurate forecasting of customer requirements, which could adversely affect its business, results of operations, financial condition and cash flows.
  • Its customers expect it to obtain and maintain certain certifications and any failure by its part to obtain and maintain such certifications may affect its reputation, business, results of operations and financial condition.
  • Custom manufacturing requires deep domain knowledge, expertise and understanding of the characteristics of each chemical and its compounds. Its may lose its customers to competitors if the company is not able to provide the product due to lack of domain knowledge and expertise.
  • Any failure to protect or enforce its rights to own or use trademarks and brand name and identity could have an adverse effect on its business and competitive position.
  • The company failures to accurately forecast and manage inventory could result in an unexpected shortfall and/ or surplus of products, which could harm its business.
  • Its inability to respond adequately to increased competition may adversely affect its business, financial condition and results of operations.
  • Information relating to installed and actual capacity utilization of its manufacturing facilities is based on various assumptions and estimates and the future production and capacity utilization may vary.
  • Its insurance cover may not adequately protect it against all material hazards and accidents. In the event of any accident at its Manufacturing Facilities, the Company may be held liable for damages and penalties which may impact the financials of the Company.
  • The company is operating in a manpower intensive industry. Hence, its may faces manpower disruptions and other planned and unplanned outages that could interfere or temporarily disrupt its operations.
  • In the event the company fails to obtain, maintain or renew its statutory and regulatory licenses, permits and approvals required to operate its business operations, its business and results of operations may be adversely affected.
  • Its business may expose it to potential product liability claims and recalls, which could adversely affect its results operation, goodwill and the marketability of the company products.
  • Any slowdown in global/domestic demand from its end use industries may have a material adverse impact on the company's business operations.
  • Its business and profitability will suffer if the company fails to anticipate rapid changes in customer preferences and the industry on which its focus.
  • The company is exposed to the risks of significant breaches of data security, and malfunctions or disruptions of information technology systems.
  • Its engage contract labour for carrying out certain business operations and obligations of the contractors may fall upon it in the event of their default.
  • Industry information included in this Red Herring Prospectus has been derived from the Research Report on Speciality Fine Chemicals Industry'. The industry report provides only a macroeconomic view of the sector which may or may not be directly related to the Company.
  • The Company has in the past entered into related party transactions with its Promoters and Promoter Group members and may continue to do so in the future. There can be no assurance that such transactions, individually or in the aggregate, will not have an adverse effect on its financial condition and results of operations.
  • Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures and are also prohibited by the terms of its financing arrangements.
  • The company has undertaken bonus issuance and buy-back of Equity Shares in the past. However, the company cannot assure you that the Company will be able to undertake bonus issuance and buy-back of Equity Shares in the future.
  • Expand its product portfolio, increasing the supply of its products to its existing customers and tap new customers in existing and new geographies.
  • Expand its capacity for existing products and diversifying into new products by setting up a new manufacturing facility.
  • Explore newer applications for its existing products and developing new products that are in synergy with its current and future operations.
  • Focus on import substitution and increasing exports.
  • Improve cost management and operational efficiencies.

Kronox Lab Sciences Ltd IPO Promoter Holding

Pre Issue Share Holding 99.98%
Post Issue Share Holding 74.18%

Kronox Lab Sciences Ltd IPO Subscription Status (Bidding Detail)

The Kronox Lab Sciences Ltd IPO is subscribed 118.22 times on Jun 05, 2024 05:00:00 PM. The public issue subscribed 55.72 times in the retail category, 89.03 times in the QIB category, and 302.99 times in the NII category. Check Day by Day Subscription Details (Live Status)

Category QIB NII Retail Employee Total
Subscription (times) 89.03 302.99 55.72 - 118.22

Kronox Lab Sciences Ltd IPO Prospectus

Kronox Lab Sciences Ltd IPO Listing Date

Listing Date 10 Jun 24
BSE Script 544187
NSE Symbol KRONOX
Listing In BSE, NSE
ISIN INE0ATZ01017
IPO Price ₹136
Face Value ₹10

Kronox Lab Sciences Ltd IPO Registrar

KFin Techologies Ltd

Phone: +91 40 6716 2222/
Email: klsl.ipo@kfintech.com
Website: www.kfintech.com

Kronox Lab Sciences Ltd IPO Lead Manager(s)

  1. Pantomath Capital Advisors Pvt Ltd

FAQs on Kronox Lab Sciences Ltd IPO

Kronox Lab Sciences Ltd IPO, which opens for subscription from 03-Jun-2024 to 05-Jun-2024 has an issue size of ₹130.15 crore. The issue type is book building issue.

In case of pre-apply, your IPO order will be placed on the Exchange as soon as the official bidding for Kronox Lab Sciences Ltd IPO begins. You will receive a UPI request within 24 hours after the bidding period opens.

Kronox Lab Sciences Ltd IPO Opens for subscription from 03-Jun-2024 to 05-Jun-2024.

The lot size of Kronox Lab Sciences Ltd is 110 shares. Retail investors can subscribe to minimum 1 lot and maximum 13 lots. The minimum and maximum application value is ₹14960 and ₹194480 respectively.

Allotment date for Kronox Lab Sciences Ltd is 06-Jun-2024 and refund of application amount (in case allotment is not received) will begin from 07-Jun-2024. If your allotment goes through, then shares will be credited in your Demat account by 07-Jun-2024.

The registrar for Kronox Lab Sciences Ltd IPO is KFin Techologies Ltd . You can check your IPO allotment status on the registrar's website.

The shares of Kronox Lab Sciences Ltd are proposed to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

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