Kronox Lab Sciences Limited – Globe Capital Market LTD.
Kronox Lab Sciences Limited
Closed
Price Band
₹129 to ₹136 per share
IPO Issue Period
June 3, 2024 to June 5, 2024
Issue Size
₹130.15 Cr
Face value
₹10 per share
Fresh issue
NIL
Offer for sale
₹130.15 Cr
Minimum Shares for Retail
110 Shares
Listing on
BSE, NSE
Issue Type
Book Built Issue IPO
Registrar to the Issue
Kfin Technologies Limited
Tentative Listing Date
Monday, June 10, 2024
QIB
50%
NII
15%
Retail
35%

Kronox Lab Sciences Limited is a manufacturer of high-purity speciality fine chemicals for diverse end-user industries. The company’s High Purity Specialty Fine Chemicals are used in various applications such as manufacturing APIs, pharmaceutical formulations, scientific research, nutraceuticals, biotech applications, agrochemical formulations, personal care products, metal refineries, and animal health products. The company offers a wide range of over 185 products, including phosphate, sulphate, acetate, chloride, citrate, nitrates, nitrites, carbonate, EDTA derivatives, hydroxide, succinate, gluconate, and others. These products are supplied to customers in India and more than 20 countries worldwide.

The company exports its products to countries such as United States, Argentina, Mexico, Australia, Egypt, Spain, Turkey, United Kingdom, Belgium, United Arab Emirates, China, among others. The company has three manufacturing facilities in Vadodara, Gujarat, close to the seaports of Mundra, Kandla, Hazira, and Nhava Sheva.

For year/ period ended ( in lacs.)

Particulars H1FY23 FY22 FY21
Total Revenue 97.50 83.34 63.24
Profit After Tax 16.62 13.63 9.73
EPS 4.30 3.49 2.40
OPM (%) 23.01% 23.95% 23.70%
PATM (%) 17.04% 16.35% 15.39%

 

For year/ period ended ( in Cr.)

Company Name Market Cap (Cr.) Price P/BV P/E Sales (Cr.)
FY23
Net Profits(Cr.)
FY23
Kronox Lab Sciences 504.61 136 11.30 31.6 97.50 16.62
Tanfac Industries Ltd. 1,995 2,000 8.66 38.01 378.15 52.48
Tatva Chintan Pharma Chem Ltd. 2,417 1,033 3.28 79.64 393.5 30.35
Neogen Chemicals Ltd. 3,944 1,495 5.19 110.63 690.67 35.47

 

*Market cap @upper band 

  • Wide range of products finding applications in diversified end user industries
  • Long standing relationship 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.
  • Carry out the Offer for Sale of Shares by the Promoter Selling Shareholders; &
  • Achieve the benefits of listing the Equity Shares on the Stock Exchanges. Further, the Company expects that the proposed listing of the Equity Shares will enhance the visibility and brand image, provide liquidity to its existing Shareholders, and provide a public market for Equity Shares in India.

The company is in high-purity specialty chemical segment and enjoys virtual monopoly in certain products. Investors may subscribe for the medium to long term rewards.

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