Friday, May 31, 2024

Kronox Lab Sciences Limited’s Initial Public Offering to open on Monday, June 3, 2024, price band set at ₹129/- to ₹136/- per Equity Share

Price Band of ₹129/- – ₹136/- per equity share bearing face value of ₹10/- each (“Equity Shares”)

Bid/Offer Opening Date – Monday, June 3, 2024 and Bid/Offer Closing Date – Wednesday, June 5, 2024.

Minimum Bid Lot is 110 Equity Shares and in multiples of 110 Equity Shares thereafter.

The Floor Price is 12.90 times the face value of the Equity Share and the Cap Price is 13.60 times the face value of the Equity Share


Risks to Investors

 




 


Mumbai, May 29, 2024: Vadodara based Kronox Lab Sciences (“Kronox” or “Company”), manufacturer of high-purity speciality fine chemicals, has fixed the price band of ₹129 to ₹136 per Equity Share of face value ₹10 each for its maiden initial public offer. The Initial Public Offering (“IPO” or “Offer”) of Equity Shares of the Company will open on Monday, June 3, 2024, for subscription and close on Wednesday, June 5, 2024. Investors can bid for a minimum of 110 Equity Shares and in multiples of 110 Equity Shares thereafter.

The public issue is entirely an offer-for-sale (OFS) up to 95,70,000 equity shares by Promoters.

Kronox’s High Purity Speciality Fine Chemicals portfolio has more than 185 products. The products are used mainly for applications across pharmaceuticals, nutraceuticals, biotech, animal health, scientific research, agrochemicals, personal care, amongst others. Kronox exports to more than 20 countries with major exports to USA, United Kingdom, Mexico, Australia, Egypt.

The Company has 3 manufacturing facilities and a Research, Development and Testing (“RDT”) laboratory, situated at Vadodara, Gujarat. Additionally, the Company has acquired land at Dahej, Gujarat to set up a new manufacturing plant. The Company has 122 products under various phases of research and development.

For Fiscal 2023, Kronox generated a consolidated revenue from operations amounting to ₹. 95.6 crores growing at CAGR of 23.70% over Fiscal 2021 to 2023, EBITDA of ₹ 22.0 crores and EBITDA margin of 23.01% Profit after tax of ₹ 16.6 crores with PAT margin of 17.04%. The Company’s Return on Equity (RoE) and Return on Capital Employed (RoCE) stood at 37.2% and 49.9% respectively for Fiscal 2023. 


Pantomath Capital Advisors Private Limited is the sole book-running lead manager. The Company’s equity shares are proposed to be listed on the BSE and NSE.


The Offer is being made through the Book Building Process, wherein not more than 50% of the Offer shall be available for allocation to Qualified Institutional Buyers, not less than 15% of the offer shall be available for allocation to Non-Institutional Bidders and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders.

KRONOX LAB SCIENCES LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offer of its Equity Shares and has filed a red herring prospectus dated May 28, 2024 with the RoC. The RHP is made available on the websites of the SEBI (www.sebi.gov.in), BRLM (www.pantomathgroup.com), NSE (www.nseindia.com), BSE (www.bseindia.com) and the Company (www.kronoxlabsciences.com). Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risks, please see the section titled “Risk Factors” beginning on page 31 of the RHP. Potential investors should not rely on the DRHP for making any investment decision but can only rely on the information included in the Red Herring Prospectus.

The Equity Shares have not been and will not be registered under the U.S. Securities Act or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in accordance with any applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in “offshore transaction” in reliance on Regulation S under the U.S. Securities Act and the applicable laws of the jurisdiction where such offers and sales are made. There will be no public offering of Equity Shares in the United States.

LISTING: The Equity Shares offered through the Red Herring Prospectus are proposed to be listed on the Stock Exchanges. Our Company has received ‘in-principle’ approvals from BSE and NSE for the listing of the Equity Shares pursuant to their letters each dated March 14, 2024. For the purposes of the Offer, the Designated Stock Exchange shall be NSE. A copy of the Red Herring Prospectus and the Prospectus shall be filed with the RoC in accordance with Sections 26(4) and 32 of the Companies Act, 2013. For details of the material contracts and documents available for inspection from the date of the Red Herring Prospectus until the Bid/ Offer Closing Date, see “Material Contracts and Documents for Inspection” on page 389 of the RHP

DISCLAIMER CLAUSE OF SEBI: SEBI only gives its observations on the offer documents and this does not constitute approval of either the Offer or the specified securities stated in the Offer Document. The investors are advised to refer to page 315 and 316 of the RHP for the full text of the disclaimer clause of SEBI. 

DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the RHP has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the RHP. The investors are advised to refer to the page 317 of the RHP for the full text of the disclaimer clause of BSE 

DISCLAIMER CLAUSE OF NSE (The Designated Stock Exchange): It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to page318 of the RHP for the full text of the disclaimer clause of NSE.



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