IPO Details:

• Type: Main Board IPO
• Issue Size: ₹130.15 Crore
• Offer: Offer for Sale (OFS) of 9,570,000 equity shares of ₹10 face value
• Price Band: ₹129 – ₹136 per share
• Minimum Order Quantity: 110 Shares
• Issue Open Date: June 3, 2024 (Monday)
• Issue Close Date: June 5, 2024 (Wednesday)
• Expected Listing Date: June 10, 2024 (Tentative)
• Lead Managers: Pantomath Capital Advisors Pvt Ltd (and syndicate members)
• BSE Code (to be assigned after listing): Not available yet
• NSE Code (to be assigned after listing): Not available yet

IPO Timeline

IPO Open Date:	June 3, 2024
IPO Close Date:	June 5, 2024
Basis of Allotment:	June 6, 2024
Refunds:	June 7, 2024
Credit to Demat Account:	June 7, 2024
IPO Listing Date:	June 10, 2024

About Company

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Kronox Lab Sciences Limited manufactures high-purity specialty fine chemicals for various end-user industries such as pharmaceuticals, food, agrochemicals, and electronics. They operate a single manufacturing facility in Maharashtra, India. The company reported revenue of ₹125.2 crore for the fiscal year ending March 31, 2023.

OBJECTIVE

• Carry out the Offer for Sale of up to 95,70,000 Equity Shares by the Promoter Selling Shareholders; and
• 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.

POSITIVE

• Growth Potential: The specialty chemicals industry is expected to experience growth in the coming years, creating a potential opportunity for Kronox.
• Focus on High Purity: The company’s focus on high-purity chemicals caters to a specific market segment with potentially higher margins.

NEGATIVE

• Valuation: Without access to the IPO prospectus, it’s difficult to determine if the offered price band reflects a fair valuation.
• Limited Track Record: As a relatively new company with limited financial history, assessing their long-term sustainability can be challenging.
• Single Manufacturing Facility: Dependence on a single production facility poses a concentration risk in case of disruptions.
• Competition: The specialty chemicals industry is competitive, with established players and new entrants vying for market share.

So, how does Kronox Lab Sciences Limited IPO Fare in Terms of Financials ?

Financial Details

Period Ended	31 Dec 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	66.96	54.03	56.79	37.65
Revenue	68.44	97.50	83.34	63.24
Profit After Tax	15.47	16.62	13.63	9.73
Net Worth	60.28	44.68	40.35	26.81
Reserves and Surplus	15.56	7.58	40.11	26.57
Total Borrowing			0.64	0.01
Amount in ₹ Crore

FINANCIAL REVIEW

Positives:

• Revenue Growth: Revenue has shown a significant increase (43.5%) in the latest period (ending Dec 2023) compared to the previous year. This indicates business expansion and growth potential.
• Profit Increase: Profit after tax (PAT) has also increased slightly (7.5%) year-over-year, demonstrating sustained profitability.

Kronox Lab Sciences Limited IPO Valuation :

Earning Per Share (EPS):	₹4.48 per Equity Share
Price/Earning P/E Ratio:	₹30.37
Return on Net Worth (RoNW):	5.66%
Net Asset Value (NAV):	₹ per Equity Share

Kronox Lab Sciences Limited IPO  – SWOT Analysis

Strengths

• Revenue Growth: Kronox Lab Sciences has shown significant revenue growth (43.5%) in the latest year, indicating business expansion and potential for future growth.
• Focus on High-Purity Chemicals: The company caters to a specific market segment with potentially higher margins due to the specialized nature of their products.
• Low Debt: The company has minimal debt, suggesting a conservative financial approach.

Weaknesses

• Limited Track Record: As a relatively new company with a short financial history, assessing their long-term sustainability can be challenging.
• Single Manufacturing Facility: Dependence on a single production facility poses a concentration risk in case of disruptions or operational issues.
• Limited Product Portfolio: The company’s performance might be highly dependent on the market demand for their existing products.pen_spark

Opportunities

• Industry Growth: The specialty chemicals industry is expected to experience growth in the coming years, creating a potential tailwind for Kronox.
• Expansion Opportunities: The company can explore expanding production capacity, entering new markets, or developing new product lines to diversify revenue streams and mitigate customer concentration risk.
• Strategic Partnerships: Collaborating with other companies in the industry can help them access new technologies, markets, or resources.pen_spark

Threats

• Competition: The specialty chemicals industry is competitive, with established players and new entrants vying for market share.
• Raw Material Price Fluctuations: The company’s profitability might be impacted by fluctuations in the prices of raw materials they use in their production process.
• Regulatory Changes: Changes in government regulations related to environmental standards or safety protocols could impact Kronox’s operations and costs.pen_spark

COMPETITIVE ANALYSIS: MARKET PEERS

Here are some of the key market peers of Kronox Lab Sciences Limited IIPO :

Peers:

• Tatva Chintan Pharma Chem Ltd: A leading manufacturer of specialty chemicals with a focus on active pharmaceutical ingredients (APIs) and intermediates.
• Tanfac Industries Ltd: Another prominent player in the specialty chemicals sector, offering a wide range of products for various industries, including pharmaceuticals, food, and textiles.
• Neogen Chemicals Ltd: A manufacturer of specialty chemicals with a focus on organic intermediates, pharmaceutical excipients, and agrochemicals.
• Sigachi Industries Ltd: A specialty chemicals company catering to pharmaceuticals, food additives, and animal feed industries.
• DMCC Speciality Chemical Ltd: A manufacturer of high-performance specialty chemicals for various industrial applications.

Kronox Lab Sciences Limited IPO GMP

• Grey market premium as on 31-05-2024 = Rs 80 / Share

Disclaimer:

• IPO Grey Market Premium mention is valid for the specific date as mentioned in the header.
• We are not buying and selling IPO forms on IPO Grey Market.
• Do not subscribe for IPO by just seeing premium Price as it may change anytime before listing. Subscribe only considering Fundamentals of the companies.

Kronox Lab Sciences Limited IPO

🔴 Live Subscription Status 🔴

03/05/2024 10:00 AM

	NO OF SHARES OFFERED	Day 1	Day 2	Day 3
Qualified Institutional Buyers(QIBs)
Non Institutional Investors(NIIs)
Retail Individual Investors(RIIs)
Total

FINAL TAKEAWAY

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I have a lot of other things that also need to be considered and those are something that I will cover in my next post.

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