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Business News/ Markets / Ipo/  Kronox Lab Sciences IPO: From financials to key risks, here are 10 key things to know from RHP before subscribing

Kronox Lab Sciences IPO: From financials to key risks, here are 10 key things to know from RHP before subscribing

  • Kronox Lab Sciences IPO subscription period from June 3 to June 5. Kronox Lab Sciences IPO price band set at 129-136 per share with no fresh issue. Promoters offloading 31.9 lakh shares. Pantomath Capital Advisors Pvt Ltd is the lead manager.

Kronox Lab IPO: The subscription period for the Kronox Lab Sciences IPO is set for Monday, June 3, and it will end on Wednesday, June 5.

The initial public offering (IPO) price band for Kronox Lab Sciences Limited has been set at 129 to 136 per equity share, with a face value of 10. The subscription period for the Kronox Lab Sciences IPO is set for Monday, June 3, and it will end on Wednesday, June 5. On Friday, May 31, the allocation to anchor investors for the Kronox Lab Sciences IPO is scheduled.

The IPO consists only of an offer-for-sale (OFS) of 95.7 lakh equity shares; there is no fresh issue component. The selling shareholders will so get the whole offering proceeds.

The promoters Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani are among the selling shareholders of the OFS; together, they are offloading 31.9 lakh shares.

Also Read: Kronox Lab Sciences IPO to open on June 3; check GMP, price band, issue size, key dates, more.

Pantomath Capital Advisors Pvt Ltd is the book running lead manager and Kfin Technologies Limited is the registrar for the Kronox Lab Sciences initial public offering.

Here are 10 key things from the Red Herring Prospectus (RHP) that investors might want to know before subscribing to the issue.

Kronox Lab Sciences IPO Promoters

Jogindersingh Jaswal, Ketan Ramani, and Pritesh Ramani are the company's promoters. The promoters together own 3,70,94,280 equity shares in the firm as of the Red Herring Prospectus date, which accounts for 99.98% of the pre-offer issued, subscribed, and paid-up equity share capital of the business.

Kronox Lab Sciences IPO Peers

Tatva Chintan Pharma Chem Ltd (P/E of 57.57), Tanfac Industries Ltd (P/E of 39.15), Neogen Chemicals Ltd (P/E of 77.55), Sigachi Industries Ltd (P/E of 46.64), and DMCC Speciality Chemical Ltd (P/E of 116.57) are the company's listed peers.

Also Read: Vadodara-based Kronox Lab Sciences files DRHP to launch its IPO

Kronox Lab Sciences IPO Business

High Purity Specialty Fine Chemicals are produced by the firm for a variety of end user sectors. High Purity Speciality Fine Chemicals are primarily utilised as (i) reacting agents and raw materials in the production of Active Pharmaceutical Ingredients (APIs); (ii) excipients in pharmaceutical formulations; (iii) reagents for scientific research and laboratory testing; (iv) ingredients in formulations for nutraceuticals; (v) intermediates and fermenting agents in biotech applications; (vi) ingredients in agrochemical formulations; (vii) ingredients in personal care products; (viii) refining agents in metal refineries; and (ix) ingredients in animal health products, among other uses.

Kronox Lab Sciences IPO Industry

With the exception of pharmaceuticals, the size of the Indian chemicals industry was around Rs. 9.10 lakh crores in terms of production value in FY22, or 8.4% of the manufacturing sector's output at constant prices, compared to 7.9% in FY18. With the exception of pharmaceuticals, the chemical and chemical product industry saw a CAGR of 8.8% from FY18 to FY22. In addition, India is ranked sixth in the world for chemical imports and eleventh for chemical exports (excluding pharmaceutical goods), according to the Department of Chemicals and Petrochemicals of the Government of India.

Also Read: Hero FinCorp IPO: Hero MotoCorp arm to raise 400-crore via IPO

Kronox Lab Sciences IPO Products

The firm supplies consumers in India and over 20 other countries with its variety of over 185 goods, which include items related to the phosphate, sulphate, acetate, chloride, citrate, nitrates, nitrites, carbonate, EDTA derivatives, hydroxide, succinate, and gluconate families.

Kronox Lab Sciences IPO in-house research

The business has established an internal research, development, and testing laboratory (referred to as the "RDT Laboratory") to create new goods and test them against client or industry criteria. Unit I has a specialised RDT Laboratory whose purpose is to use cutting-edge tools and technologies to adopt a performance-oriented strategy. Their RDT Laboratory has all the tools needed to conduct the tests needed to create the products. Sixteen scientific graduates and postgraduates make up their RDT team, which conducts a variety of tests to make sure the items' quality satisfies industry standards and consumer expectations.

Kronox Lab Sciences IPO new products

The following are some of the new products that are being suggested for launch: gluconate, succinate, and glycinate.

Kronox Lab Sciences IPO Financials

From the fiscal year ending on March 31, 2023, to March 31, 2022, Kronox Lab Sciences Limited had a rise in revenue of 16.99% and profit after tax (PAT) of 21.94%.

Kronox Lab Sciences IPO Key Risks

Some of the key risks are as follows;

  • Products from the firm must adhere to national and international industry standards. Any departure from these guidelines might result in consumers rejecting their items, which could harm the company's image.
  • The company's operations and prospects might be considerably and negatively impacted if they are unable to carry out their plan to increase their business or their manufacturing capacity.

Lock-in of equity shares allotted to anchor investors

Half of the equity shares allotted to the anchor investors will be locked in for 90 days starting on the day of allocation, and the other 50% will be locked in for 30 days starting on that date.

Also Read: IPO Boom: 57% of SME issues saw over 100% subscription in 2024, HOAC Foods leads pack; check top performers

Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not Mint. We advise investors to consult certified experts before making any investment decisions.

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