Home » Private Sector » Kronox Lab Sciences files draft papers with Sebi for IPO

Private Sector

Kronox Lab Sciences files draft papers with Sebi for IPO

Kronox Lab Sciences

Kronox Lab Sciences has filed a draft-red herring prospectus (DRHP) with Sebi for its proposed initial public offering (IPO). The Vadodara-based company produces high-purity fine chemicals. The company intends to raise Rs 150-180 crore through its initial stake sale. According to the DRHP, Kronox’s IPO will include a fresh share sale of Rs 45 crore as well as an offer for sale (OFS) of up to 78,00,000 equity shares by its promoters, Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani, who will each offload up to 26,00,000 equity shares in the OFS. According to the company’s DRHP, the net proceeds from the new issue will be used to fund working capital requirements and general corporate purposes.

The proceeds of the offer-for-sale (OFS) would be distributed to the selling shareholders. Kronox’s products are used in a variety of industries, including pharmaceutical formulations, active pharmaceutical ingredients (API), biotech, scientific research and testing, nutraceuticals, personal care, agrochemicals, animal health, metallurgy, and others. Kronox exports to over 20 countries, including the United States, the United Kingdom, Mexico, Australia, and Egypt, among others. Kronox has a portfolio of more than 185 high-purity specialty fine chemicals.

Kronox Lab Sciences

In Padra, Vadodara, Gujarat, the company has three manufacturing facilities and a research, development, and testing (RDT) laboratory. In the previous five fiscal years, it served over 625 customers. Kronox reported consolidated revenue from operations of Rs. 95.6 crore in fiscal year 2022-23, while Ebitda was Rs 22 crore, with Ebitda margins of 23%. Its profit after tax was Rs 16.6 crore, with a PAT margin of 17%. Pantomath Capital Advisors is the sole lead manager in charge of the book. The company’s shares will be listed on both the BSE and the NSE.