Kronox Lab Sciences
Book Building issueMainboard₹130 Cr issue
+21.32%
Listing gain over issue price
Issue size
₹130 Cr
1 lot at cut-off
₹14,960
Lot size
110shares
Open
03 Jun 2024
Close
05 Jun 2024
Allotment
06 Jun 2024
Listing
10 Jun 2024
Listing performance
Issue price
₹136
Listed at
₹165
Listing-day close
₹159.35
Latest price
₹189.26
Close on 23 Oct 2026
Listing gain
+21.32%
Return since issue
+39.16%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 03 Jun 2024 – 05 Jun 2024
- Listing date
- 10 Jun 2024
- Face value
- ₹10 per share
- Issue price
- ₹136 per share
- Lot size
- 110 shares
- Issue type
- Book Building issue
- Total issue size
- ₹130 Cr
- Market cap at offer price
- ₹505 Cr
- Promoter holding
- 100.00% → 74.21% pre-issue → post-issue
- ISIN
- INE0ATZ01017
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- Pantomath Capital Advisors Pvt.Ltd.
- Registered office
- Block No.353, Village Ekalbara, Padra, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 28,71,000 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 110 shares per lot, in multiples, at ₹136
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 110 | ₹14,960 |
| Retail (max) | 13 | 1,430 | ₹1,94,480 |
| S-HNI (min) | 14 | 1,540 | ₹2,09,440 |
| S-HNI (max) | 66 | 7,260 | ₹9,87,360 |
| B-HNI (min) | 67 | 7,370 | ₹10,02,320 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
28,71,000
Anchor portion
₹39.05 Cr
at ₹136 per share
Valuation and performance
Valuation at offer price
₹136 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.48 | 5.56 |
| P/E (×) | 30.36 | 24.46 |
| Price to book (×) | 8.37 | — |
| Market cap | — | ₹505 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 25.66%
- ROCE
- 33.15%
- PAT margin
- 22.60%
- NAV per share
- ₹16.25
- Price to book
- 8.37
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Kronox Lab Sciences
Kronox Lab Sciences Limited, incorporated on November 18, 2008 and converted to a public limited company on June 11, 2019, manufactures more than 185 high-purity specialty fine chemicals. The company's products are used as reacting agents and raw materials in pharmaceutical manufacturing, excipients in pharmaceutical formulations, reagents for scientific research and laboratory testing, ingredients in nutraceuticals, process intermediates in biotech, and other applications. Products are manufactured to meet international standards (IP, BP, EP, JP, USP, FCC) and custom specifications. The company serves over 592 customers across India and more than 20 countries, with operations concentrated in Vadodara, Gujarat across three manufacturing units.
Company Analysis
from RHPKronox Lab Sciences Limited manufactures high-purity specialty fine chemicals for pharmaceutical, scientific research, nutraceutical, biotech, agrochemical, personal care, metallurgy, and animal health industries.
Kronox Lab Sciences Limited, incorporated on November 18, 2008 and converted to a public limited company on June 11, 2019, manufactures more than 185 high-purity specialty fine chemicals. The company's products are used as reacting agents and raw materials in pharmaceutical manufacturing, excipients in pharmaceutical formulations, reagents for scientific research and laboratory testing, ingredients in nutraceuticals, process intermediates in biotech, and other applications. Products are manufactured to meet international standards (IP, BP, EP, JP, USP, FCC) and custom specifications. The company serves over 592 customers across India and more than 20 countries, with operations concentrated in Vadodara, Gujarat across three manufacturing units.
PharmaceuticalsScientific Research and Laboratory TestingNutraceuticalsBiotechAgrochemicalsPersonal CareMetallurgyAnimal Health
Objects of the Issue
- The Objects of the Offer are to achieve the benefits of listing the Equity Shares on the Stock Exchanges and for the Offer of the Equity Shares by Promoter Selling Shareholders. Our Company will not directly receive any proceeds from the Offer and all the Offer Proceeds will be received by Promoter Selling Shareholders. p.25
- Offer for Sale and listing benefits p.88
Issue Structure
- Total Issue
- Up to ₹ [●] million
- Fresh Issue
- Not applicable
- Offer for Sale
- Up to 95,70,000 Equity Shares of face value ₹10 each aggregating up to ₹ [●] million
- Price Band
- ₹129 per Equity Share (Floor Price) to ₹136 per Equity Share (Cap Price)
- Lot Size
- 110 Equity Shares (minimum bid lot) and in multiples of 110 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company manufactures and sells high-purity specialty fine chemicals to diversified end-user industries. Revenue is generated through the sale of products to domestic customers (74.93% for nine months ended December 31, 2023) and international exports (25.07%). The primary application industries are Pharmaceuticals (45.13%), Scientific Research and Laboratory Testing (26.54%), and Nutraceuticals (23.72%).
Business Segments
High-purity specialty fine chemicals used as reacting agents and raw materials in manufacturing of Active Pharmaceutical Ingredients (APIs) and as excipients in pharmaceutical formulations
High-purity specialty fine chemicals used as reagents for scientific research and laboratory testing
High-purity specialty fine chemicals used as ingredients in nutraceuticals formulations
Biotech, Agrochemicals, Personal Care, Metallurgy and Animal Health applications
Supply of excipients in pharmaceutical formulations including disintegrants, binders, fillers and bulking agents; supplies for electrolytes; chelating agents for enhancement of stability of medications; reacting agents and raw materials for intermediates.
Supply of chemicals for use as drying agents, dehydrating agents and catalysts; precursors in the synthesis of several organic substances; complexing agents in analytical chemistry.
Supply of ingredients in the nutritional, dietary and health supplement products including bioavailable mineral supplements; stabilizers in nutraceuticals formulations.
Supply of buffers to control the pH of biological solutions; chelating agents in certain processes involving enzymes or proteins; chelating agents in cell culture media; process intermediates; fermentation agents; buffer solutions for precipitation and purification of proteins; cofactor in enzyme reactions and in polymerase chain reaction.
Supply of ingredients in agrochemical formulations.
Supply of chelating agents, stabilizers, or pH adjusters; additives; surfactants; deterioration prevention stabilizers.
Supply of refining agents, complexing agents, fluxing agents, corrosion inhibitors.
Supply of formulation excipients, stabilizers, preservatives, buffering agents in medications and supplements for animals.
High purity specialty fine chemical used in pharmaceuticals, nutraceuticals, scientific research and laboratory testing, biotech, chemicals, metallurgy, food & beverages, animal health, electronics, and personal care
High purity specialty fine chemical used in pharmaceuticals, nutraceuticals, scientific research, metallurgy, paints and coatings, electronics, personal and home care, animal health, agrochemicals, paper & pulp, construction, automotive, and glass & ceramics
High purity specialty fine chemical used in automotive, glass & ceramics, pharmaceuticals, nutraceuticals, scientific research, biotech, metallurgy, electronics, personal and home care, animal health, and agrochemicals
Manufacturing and export of high purity specialty fine chemicals with product portfolio of over 185 products spanning phosphate, sulphate, acetate, chloride, citrate, nitrates, nitrites, carbonate, EDTA derivatives, hydroxide, succinate, gluconate
Supply of high purity speciality fine chemicals as excipients in pharmaceutical formulations including disintegrants, binders, fillers and bulking agents, as supplements for electrolytes, as chelating agents for enhancement of stability of medications, as reacting agents and raw materials for intermediates
Supply of high purity speciality fine chemicals as drying agents, dehydrating agents and catalysts, as precursors in the synthesis of several organic substances, as complexing agents in analytical chemistry
Supply of high purity speciality fine chemicals as ingredients in the nutritional, dietary and health supplement products including bioavailable mineral supplements, as stabilizers in nutraceuticals formulations
SWOT Analysis
Strengths
- • Established product portfolio with strong customer relationships(p.33)
- • Diversified product range across multiple applications(p.24)
- • Consistent revenue growth with CAGR of 23.70%(p.32)
- • Debt-free financial position(p.39)
- • Strong profitability and ROE performance(p.26)
- • Diversified product portfolio with wide applications across multiple end-user industries(p.92)
- • Long-standing customer relationships providing competitive advantages(p.92)
- • High barriers to entry due to long customer approval cycles and strict product standards(p.92)
- • Strong financial performance with zero debt company status(p.92)
- • Strategic manufacturing facility location providing supply chain efficiencies(p.92)
- • Experienced promoters and senior management with extensive domain expertise(p.92)
- • Strong revenue and profit growth trajectory with PAT CAGR of 30.68% (FY2021-2023)(p.106)
- • High profitability margins with PAT margin of 17.04% (FY2023) and 22.60% (9M FY2024)(p.96)
- • Diverse product portfolio across 185+ products with applications across multiple industries(p.172)
- • Strong long-standing customer relationships with repeat order base and high retention(p.174)
- • High barriers to entry due to long customer approval cycles and strict quality standards(p.176)
- • Zero debt company with strong financial performance and robust cash flows(p.177)
- • Strategic manufacturing location with access to major ports and proximity to key industrial clusters(p.179)
- • Experienced promoters and senior management with over 70 years of collective industry experience(p.180)
- • Custom manufacturing capabilities enabling production of high-margin speciality chemicals(p.172)
- • Strong R&D capabilities with 122 products under development and dedicated laboratory(p.176)
- • Diversified product portfolio spanning 185+ high-purity specialty fine chemicals with broad applications across multiple industries(p.184)
- • Established export presence to 20+ countries with growing international revenue contribution(p.183)
- • Multiple quality certifications including FSSC 22000, ISO 9001/14001/45001, Kosher, Halal, GMP, GLP providing credibility in regulated industries(p.190)
- • Three operational manufacturing units with aggregate installed capacity of 7,242 TPA positioned to serve diversified market segments(p.189)
- • Experienced promoter leadership with 30+ years in chemical industry and dedicated R&D team of 16 science graduates/post-graduates(p.192)
- • Established manufacturing and quality operations(p.285)
- • Diverse product portfolio serving multiple industries(p.285)
- • Dedicated R&D capability and product innovation(p.287)
- • Significant profitability and margin expansion(p.294)
- • Growing customer base with repeat orders(p.287)
Weaknesses
- • High dependency on top 10 customers for 45.22% of revenue(p.36)
- • No long-term customer agreements in place(p.36)
- • Limited production capacity utilization at 50.47%(p.43)
- • High concentration of manufacturing facilities in single geography(p.46)
- • Supplier concentration with top 10 suppliers at 44.22%(p.39)
- • No long-term supplier agreements for raw materials(p.39)
- • GPCB restrictions on expansion limiting Unit III capacity(p.43)
- • Inventory management risk with fluctuating holding periods(p.50)
- • Vulnerability to demand forecasting errors leading to product shortfalls or surplus(p.50)
- • Manpower-intensive operations creating exposure to labor disruptions(p.51)
- • Dependence on contract labor with potential wage obligation liabilities(p.54)
- • Rising employee attrition rate with FY2023 attrition of 5.20% versus 0.58% in FY2022(p.52)
- • Insurance coverage may be inadequate for all operational hazards and accidents(p.51)
- • Related party transactions with promoters creating potential conflicts of interest(p.54)
- • High concentration in top customers; top 10 customers represent 45% of revenue(p.174)
- • Dependence on long-term customer relationships without formal long-term agreements(p.174)
- • Capacity utilization at only 67% indicating underutilized manufacturing infrastructure(p.179)
- • Revenue concentration in United States export market at 83-94% of export revenues(p.181)
- • Unit III capacity expansion severely restricted by environmental regulatory constraints limiting growth from this facility(p.190)
- • Declining capacity utilization across all three units; Unit III utilization dropped from 92.58% (FY2021) to 22.93% (Dec 2023)(p.190)
- • Reliance on spot market purchases with no long-term supply contracts, creating raw material procurement risk and price volatility exposure(p.191)
- • Heavy dependence on three promoter-directors for core business functions (production, finance, sales) with limited succession planning(p.207)
- • High concentration in customer base(p.305)
- • Dependence on limited raw material suppliers without long-term contracts(p.287)
- • Significant portion of revenue from few customer segments(p.290)
- • Unhedged foreign currency exposure(p.288)
Opportunities
- • Planned new manufacturing unit at GIDC Dahej-II for capacity expansion(p.32)
- • 122 products in R&D pipeline for portfolio diversification(p.32)
- • Expansion into new product families and applications(p.35)
- • Growing pharmaceutical and nutraceutical end-user markets(p.34)
- • Established export presence in 15+ countries with growth potential(p.44)
- • Product quality, timely delivery, and customization capabilities to expand market reach(p.50)
- • Significant expansion in global exports with 37.46% CAGR in export revenue (FY2021-2023)(p.106)
- • Robust customer base growth with 23.82% of customers placing repeat orders(p.106)
- • India's strong economic growth projected at 6.8% for CY24 and 6.5% for CY25(p.111)
- • India poised to become USD 5 trillion economy by CY27, expected third-largest economy globally(p.111)
- • Expanding product portfolio with 189 products and 64 new products under development(p.96)
- • Expansion of product portfolio across 122 products in various R&D phases(p.180)
- • New manufacturing facility at GIDC Dahej to expand capacity and diversify products(p.181)
- • Growth in global citrate market at 10.4% CAGR (CY2022-2025) with Indian market at 9.7% CAGR(p.120)
- • Expanding applications in pharmaceuticals, nutraceuticals, biotech and emerging industries(p.181)
- • Strong global demand for specialty fine chemicals driven by pharmaceutical and nutraceutical growth(p.155)
- • India positioned as China+1 alternative with manufacturing scale and government support(p.162)
- • Geographic diversification opportunity from current 83% US export concentration(p.181)
- • Large addressable markets in established products: Citrate (₹1.13 Bn globally, 10.4% CAGR), Carbonate (₹66 Bn, 9.4% CAGR), Phosphate (₹134 Bn, 4.9% CAGR)(p.185)
- • High-growth specialty product opportunities: Succinate market growing at 26.6% CAGR globally (₹0.14 Bn base) and 27.8% in India(p.183)
- • China-Plus-One strategy adoption benefiting Indian chemical exporters as global companies diversify supply chains away from China(p.183)
- • Government support for indigenous manufacturing through Make in India initiatives driving metallurgy and specialty chemicals demand(p.183)
- • Proposed Unit IV at Dahej with 20,471 sq.m land acquired enabling significant capacity expansion without regulatory constraints(p.190)
- • Emerging domestic food & beverage consumption trends creating demand for specialty chemicals across pharmaceutical, nutraceutical, and food additives(p.183)
- • Geographic expansion in export markets(p.285)
- • Growing pharmaceutical and biotech industries globally(p.286)
- • Expansion of product portfolio through R&D(p.289)
- • Capacity expansion with planned Unit at Dahej-II(p.312)
Threats
- • Product quality rejection risk and market acceptance(p.31)
- • Limited product demand in application industries(p.33)
- • Exposure to changes in customer requirements and product redundancy(p.34)
- • Foreign exchange volatility affecting export revenues(p.44)
- • Heavy dependence on USA for 83.01% of export sales(p.44)
- • Third-party logistics dependency and transportation risks(p.38)
- • Regulatory restrictions and environmental compliance requirements(p.43)
- • Long customer approval timelines (18 months average)(p.45)
- • Intense competition from domestic and international manufacturers with better resources(p.50)
- • Slowdown in global and domestic demand from end-user industries affecting business operations(p.53)
- • Volatility in raw material prices and supply chain disruptions from international trade measures(p.53)
- • Regulatory and licensing risks with extensive government approvals required for operations(p.52)
- • Operational risks including fire, explosions, accidents, and environmental hazards inherent to manufacturing(p.51)
- • Economic slowdown risks in India and global economies affecting consumer demand(p.58)
- • Inflation pressures limiting ability to pass increased costs to customers(p.58)
- • Geopolitical and financial instability with potential impact on Indian financial markets and economy(p.57)
- • Price fluctuations in raw materials and end products affecting profitability(p.164)
- • Stringent quality norms and regulatory compliance requirements for chemical production(p.164)
- • Global inflationary pressures and geopolitical tensions impacting demand and supply(p.164)
- • Environmental concerns requiring R&D investments and compliance with sustainability standards(p.164)
- • Expected price correction and market value decline for specialty chemicals post CY2022 highs(p.121)
- • Near-term challenges in agrochemicals sector from high inventory and declining input prices(p.162)
- • Global economic slowdown and external demand weakness affecting exports(p.112)
- • Intense competition from both domestic and international players including Canton Laboratories (India), Jost Chemicals (USA), Budenheim (Germany), Jiangsu Kolod(p.194)
- • Stringent environmental regulations (EPA, Water Act, Air Act, Hazardous Waste Rules) requiring ongoing compliance investments and potential operational restrictions(p.193)
- • Raw material price volatility as primary inputs (citric acid, phosphoric acid, potassium hydroxide, sodium hydroxide) follow market prices with no hedging contracts(p.191)
- • High customer concentration risk with direct B2B relationships and potential for sudden order cancellations or payment defaults(p.192)
- • Regulatory changes in pharmaceutical, cosmetic, and food safety regulations could impact product approvals and market access(p.197)
- • Raw material price volatility and supply chain disruptions(p.39)
- • Intense competition from domestic and international competitors(p.288)
- • Foreign exchange fluctuation risk(p.43)
- • Industry and regulatory cyclicality(p.287)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Jogindersingh Jaswal | Promoter | 34.99% | — |
| Ketan Ramani | Promoter | 34.99% | — |
| Pritesh Ramani | Promoter | 30.00% | — |
| Jogindersingh Jaswal | Promoter | 34.99% | [●] |
| Ketan Ramani | Promoter | 34.99% | [●] |
| Pritesh Ramani | Promoter | 30.00% | [●] |
| Ankit Jaswal | Promoter Group | Negligible | [●] |
| Anjukumari Jaswal | Promoter Group | Negligible | [●] |
| Rupal Ramani | Promoter Group | Negligible | [●] |
| Dhruvil Ramani | Promoter Group | Negligible | [●] |
| Pooja Parshva Gandhi | Promoter Group | Negligible | [●] |
| Deepali Ramani | Promoter Group | Negligible | [●] |
| Jogindersingh Jaswal | Promoter | — | — |
| Ketan Vinodchandra Ramani | Promoter and Director | — | — |
| Pritesh Vinodchandra Ramani | Promoter and Director | — | — |
| Jogindersingh Jaswal | Promoter | 34.99% | — |
| Ketan Ramani | Promoter | 34.99% | — |
| Pritesh Ramani | Promoter | 30.00% | — |
| Pritesh Ramani | Promoter | 30.00% | — |
| Jogindersingh Jaswal | Promoter | 34.99% | — |
| Ketan Ramani | Promoter | 34.99% | — |
| Jogindersingh Jaswal | Promoter Selling Shareholder | — | — |
| Ketan Ramani | Promoter Selling Shareholder | — | — |
| Pritesh Ramani | Promoter Selling Shareholder | — | — |
| Jogindersingh Jaswal | Promoter Selling Shareholder | — | — |
| Ketan Ramani | Promoter Selling Shareholder | — | — |
| Pritesh Ramani | Promoter Selling Shareholder | — | — |
Leadership
Jogindersingh Jaswal · Chairman and Managing Director
Ketan Ramani · Whole-time Director
Pritesh Ramani · Whole-time Director
Samir Gadhiya · Chief Financial Officer
Nikhil Goswami · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Kronox Lab Sciences IPO FAQs
What is the lot size of Kronox Lab Sciences IPO?
The minimum lot size of Kronox Lab Sciences IPO is 110 shares. One lot costs ₹14,960 at the cut-off price.
When does Kronox Lab Sciences IPO open and close?
Kronox Lab Sciences IPO opened for subscription on 03 Jun 2024 and closed on 05 Jun 2024.
What is the listing date of Kronox Lab Sciences IPO?
Kronox Lab Sciences IPO listed on 10 Jun 2024.