Kronox Lab Sciences Ltd
IPO proceeds
Entire proceeds went to promoter shareholders(3 main promoters), nothing gone into company.
Competitors –
Canton Laboratories
Private Limited (India),
Jost Chemicals, USA,
Budenheim (Germany),
Jiangsu Kolod Food
Ingredients Co. Ltd. (China),
CFL Chemische Fabrik Lehrte GmbH & Co. KG (Germany) and
Ichimaru Co. Ltd. (Japan)
Proposed Unit
Plot No. D-2/17/1, Dahej-II Industrial Estate, Taluka -Vagra, District -Bharuch, Gujarat, India
(20,470.99 Sq.mtrs for 10.73cr)
Existing Units
Unit – I is located at Block No. 284, Village Dabhasa, Padra, Vadodara, Gujarat – 2400TPA
Unit – II is located at located at Block No. 138, Village Ekalbara, Padra, Vadodara, Gujarat – 3744TPA
Unit – III is located at Block No. 353, Village Ekalbara, Padra, Vadodara, Gujarat. – 1098TPA
Red flags –
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Now the problem is all 3 units are located near Padra, and their Unit-III is banned from manufacturing certain products due to water contamination in that particular area.
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Other Units may also get banned – this is a big red flag.
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Company acquired land along with factory shed of Unit I for a total consideration of ₹ 20.00 million by way of sale deed dated February 14, 2022 from M/s. P. K. Capital & Investment in which our Promoter Group members, Rupal Ramani and Dipali Ramani are partners
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Company also acquired land along with factory shed of Unit III for a total consideration of ₹ 66.50 million by way of sale deed dated May 27, 2022 from Chemsol Specialities LLP in which our Promoters, Jogindersingh Jaswal, Ketan Ramani and Pritesh Ramani are partners.
Unit I & Unit III plot’s were owned by promoters and given on rent to company, I suspect they sold those plots to company after knowing that GPCB will send notice due to water contamination in that particular area.
If company is banned from production activities in Unit-III what is the use of buying that plot ? company could have use those resources at some other place.
Investing at this point of time is highly risky as other units can get GPCB notice anytime, business may get hampered upto 80-100%.
They have recently bought plot at Dahej which is the need of an hour.
will re-look at this company next year.
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