Kronox Lab Sciences Limited IPO: Get Date, Price, Review and Details

Introduction: Kronox Lab Sciences Ltd

Incorporated in 2008, Kronox Lab Sciences Ltd specializes in manufacturing and marketing high-purity specialty fine chemicals. Their main product is widely used in the production of APIs, pharmaceutical formulations, scientific research, nutraceuticals, biotech applications, agrochemicals, personal care products, metal refineries, and animal health products.

It not only has a strong market presence in India but also exports to over 20 countries, including the US, Argentina, Mexico, Australia, Egypt, Spain, Turkey, the UK, Belgium, the UAE, and China. The company is actively conducting R&D on 122 products to expand its offerings.

It operates in three manufacturing facilities in Vadodara, Gujarat. This strategic location provides easy access to major ports like Mundra, Kandla, Hazira, and Nhava Sheva, facilitating efficient product distribution.

Kronox Lab Sciences Ltd IPO Details:

IPO Date

3rd June-2024 to 5th June-2024

Face Value

₹ 10/- per share

Price Band

₹ 129 to ₹ 136 per share

Lot Size

110 shares and in multiples thereof

Issue Size

₹ 130.15 crores

OFS

₹ 130.15 crores

Objects of Issue:

Since this is an OFS issue, existing shareholders are liquidating their stake.

Key Strengths:

  • Broad product portfolio catering to diverse end-user industries.
  • Long standing relationship with customers
  • Barriers to entry in this industry are typically high.
  • Strong emphasis on R&D and quality control.
  • Manufacturing facilities strategically located for optimal supply chain efficiency.

Risks:

  • Concentrated customer base: The top 10 clients contributed 45.22% of total revenue for the nine months ending December 31, 2023.
  • Supplier concentration: Top 10 suppliers accounted for 44.22% of total procurement by December 31, 2023. The lack of long-term contracts poses a risk, leaving the company vulnerable to raw material shortages and price fluctuations.
  • Operating at only 50.47% capacity for the nine months ending December 2023, the company is underutilizing its installed capacity.
  • Our products serve niche applications in industries. Reduced demand could lead to business loss and impact financial performance and stability.
  • Compliance with domestic and international industry standards is essential. Any deviations may lead to product rejections, potentially harming the company's reputation and customer relationships.

Financial Snapshot:

Particulars

9 months ending 31/12/23

9 months ending 31/12/22

FY23

FY22

FY21

Revenue from operations (Rs. In Crores)

68

74

96

82

62

YoY Growth

-8%

 

17%

32%

 

EBITDA (Rs. In Crores)

20

18

22

20

15

YoY Growth

11%

 

10%

33%

 

EBITDA Margin

30%

24%

23%

24%

24%

PAT (Rs. In Crores)

15

14

17

14

10

PAT Margin

23%

19%

17%

16%

15%

ROCE

33%

33%

50%

47%

52%

ROE

26%

26%

37%

34%

36%

 

 

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