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IPO listed on 10 Jun'24

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Kronox Lab Sciences Ltd

Minimum Investment

14,960 / 110 shares

Grey market premium

82 (60% premium)

Issue price


Listing price


Listing gains


28.95 (21%)

Listing on

June 10, 2024

Our Verdict:


  • Kronox Lab Sciences Ltd has exhibited consistent growth in revenue and profits over the past three years, buoyed by impressive operating margins and return metrics.
  • Operating within the high-purity specialty chemical sector, the firm enjoys a near-monopoly in several products. Its robust product portfolio includes 185 products with an additional 122 in development.
  • In terms of valuation, the IPO is reasonably priced at a Price-to-Earnings (P/E) ratio of 25x based on the forecasted FY24 earnings post-IPO. Additionally, the presence of a healthy grey market premium (GMP) suggests a strong debut on the bourses.
  • Considering the firm’s solid fundamentals, significant competitive advantages, potential for growth, and reasonable valuations, investors may subscribe to this IPO from a medium-to-long perspective.

About the company

Founded in

18 Nov'08

Managing director

Jogindersingh Jaswal

  • Kronox Lab Sciences Ltd (Kronox) is a manufacturer of high purity specialty fine chemicals, serving a variety of industries. Its products are essential in several applications, including pharmaceuticals, nutraceuticals, scientific research, agrochemicals, metal refineries, personal care, and animal health.
  • Kronox operates three manufacturing facilities in Vadodara, Gujarat, strategically located near the Mundra, Kandla, Hazira, and Nhava Sheva seaports. These facilities cover an area of 17,454 square meters and, as of December 31, 2023, have a combined installed capacity of 7,242 tonnes per annum (TPA).


  • Impressive Financial Performance: Kronox has shown strong and consistent financial performance, with a Compound Annual Growth Rate (CAGR) of 24% in operational revenue from FY21 to FY23. It also reported a 22% increase in EBITDA and a 31% surge in net profit during this period.
  • Healthy Profitability Margins: Kronox maintains high profitability margins, evidenced by an EBITDA margin of 30.23% and a net profit margin of 22.60% for the nine months ended December 2023. These figures highlight the firm’s financial health and operational efficiency.
  • Robust Return Metrics: Kronox boasts strong return ratios, with a Return on Equity of 25.66% and a Return on Capital Employed of 33.15% for the nine months period ending December 2023, outperforming its peers.
  • Customer Loyalty and Retention: Over the past three fiscal years and in the nine months up to December 31, 2023, Kronox served over 592 customers, with 141, or 23.82%, placing repeat orders. The firm has maintained long-term relationships with its top 20 customers, averaging 7 to 9 years.
  • Financial Stability and Growth Opportunities: Kronox benefits from a strong balance sheet and positive operating cash flows. Its debt-free position supports strategic initiatives, growth opportunities, and the management of cash flow fluctuations.
  • International Presence and Export Growth: Kronox has expanded globally, serving customers in more than 20 countries including the United States, Argentina, Mexico, Australia, Egypt, Spain, Turkey, the UK, Belgium, the UAE, and China. Its export revenue has grown at a CAGR of 37.46% between FY21 and FY23.


  • Product Concentration Risks: Kronox heavily relies on its top 20 products, which accounted for 60.49% to 70.58% of its total revenue during the nine months ending December 31, 2023, and FY23. Such a concentrated revenue stream subjects the company to substantial demand risks for these crucial products.
  • Customer Dependence: Kronox's top 10 customers generated between 45.22% and 50.68% of its revenue during the nine months periods ending December 31, 2023, and FY23, respectively. The absence of long-term purchasing agreements with these customers poses a risk of discontinuity in sales, which could negatively impact its financial and operational performance.
  • Under-Utilization of Capacity: The operational capacity utilization at Kronox’s manufacturing facilities ranged between 50.47% and 78.36% from FY21 through the nine months ending December 2023. Variabilities in raw material supply, customer demand, product lifecycle, manpower availability, and overall market conditions may further reduce these utilization levels, adversely affecting operations.


Issue details

Issue type


Issue size

130.15 crore

Fresh Issue



130.15 crore

Price range

₹ 129 - 136

Lot size


Issue Objective

This issue is solely an offer for sale, with all proceeds going to the selling shareholders rather than the company itself.



Bidding open

3 Jun'24


Bidding close

5 Jun'24


Allotment date

6 Jun'24


Refund date

7 Jun'24



10 Jun'24

IPO Reservations

Qualified institutional buyers


Non-institutional investors


Retail individual investors



Read the Offer Document

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© 2024 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)

This document has been issued by Liquide Solutions Private Limited for information purposes only. It does not have regard to specific investment objectives, financial situation and the particular needs of any specific person who may receive this document. Investors should seek personal and independent advice regarding the appropriateness of investing in any of the funds, securities, other investment or investment strategies that may have been discussed or referred herein and should understand that the views regarding future prospects may or may not be realized. In no event shall Liquide Life Private Limited and / or its affiliates or any of their directors, trustees, officers and employees be liable for any direct, indirect, special, incidental or consequential damages arising out of the use of information / opinion herein.

Liquide Solutions Private Limited makes no warranties or representations, express or implied, on products and services offered through the platform. It accepts no liability for any damages or losses, however, caused in connection with the use of, or on the reliance of its advisory or related services.


Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed.


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SEBI Registration Details

Name: Liquide Solutions Private Limited | RA No: INH000009816 | Reg. Type: Corporate | Validity: Perpetual  

Associated SEBI regional office: SEBI, Jeevan Mangal Building, Hayes Rd, off, Residency Rd, Shanthala Nagar, Ashok Nagar, Bengaluru, Karnataka 560025

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