Indo Borax and Chemicals Limited has published the Detailed Public Statement (DPS) for its mandatory open offer to acquire a controlling stake in Kronox Lab Sciences . The acquirer aims to purchase up to 95,70,000 equity shares, representing 25.79% of the target’s voting share capital, at an offer price of ₹157.27 per share.

The DPS was published on August 28, 2026, by IIFL Capital Services Limited, acting as the manager to the open offer. The transaction follows a share purchase agreement dated August 20, 2026, wherein Indo Borax agreed to acquire 64.26% of Kronox Lab Sciences from its existing promoters. Zenrock Chemicals Private Limited acts as a person acting in concert (PAC) with the acquirer.

Offer Timeline

The tendering period for the open offer is scheduled to commence on October 15, 2026, and close on October 29, 2026. The last date for the dispatch of the Letter of Offer to public shareholders is October 8, 2026. Indo Borax must communicate acceptance or rejection of tendered shares by November 13, 2026.

Financial Arrangements

Indo Borax has confirmed firm financial arrangements to meet the obligations under the open offer. The acquirer holds cash and cash equivalents of ₹134.0 crore as of August 19, 2026. Additionally, the PAC, Zenrock Chemicals, has committed ₹25.0 crore in financial support. A total escrow amount of ₹38.0 crore, representing 25.25% of the maximum consideration, has been deposited with Kotak Mahindra Bank Limited.

Target Company Profile

Kronox Lab Sciences manufactures high-purity specialty fine chemicals for pharmaceutical, nutraceutical, and biotech sectors. The company reported total income of ₹1,064.1 crore and profit after tax of ₹276.6 crore for FY26. For the quarter ended June 30, 2026, revenue stood at ₹296.8 crore with a net profit of ₹73.0 crore.

What the Numbers Show

The disparity between the negotiated promoter exit price and the public offer price highlights a significant value transfer to minority shareholders. While the promoters sold their stake at an effective price of ₹105.87 per share, public shareholders are being offered ₹157.27 per share. This premium of approximately 49% over the negotiated price underscores the regulatory requirement to protect minority interests in substantial acquisitions, potentially leading to immediate arbitrage opportunities if the market price remains below the offer price during the tendering period.

Kronox Lab Sciences has fixed September 9, 2026, as the record date for determining shareholder eligibility for its final dividend of ₹0.50 per equity share for FY26.

The Vadodara-based specialty chemical manufacturer declared the dividend in May 2026, following a net profit increase of 8.6% to ₹276.6 crore for the financial year ended March 31, 2026. The company maintained revenue stability at ₹1,012.2 crore while expanding profitability through margin optimization.

Financial Performance

Revenue from operations remained largely flat at ₹1,012.2 crore, compared to ₹1,001.9 crore in FY25. Despite the modest top-line growth, the company delivered strong bottom-line results driven by operational efficiency.

Export revenue contributed significantly to the total turnover, rising to 32.4% of total revenue in FY26, up from 26.6% in the previous year. Foreign exchange earnings stood at ₹308.1 crore.

What the Numbers Show

The divergence between flat revenue growth and double-digit profit expansion highlights a shift in profit composition. Other income surged 105.6% to ₹51.9 crore, primarily driven by interest income which more than doubled to ₹36.8 crore. This non-operating contribution accounts for a substantial portion of the net profit growth, indicating that the bottom-line beat was partly fueled by higher returns on surplus cash rather than purely operational leverage.

Balance Sheet and Cash Flow

Kronox maintained a robust liquidity position with a current ratio of 7.60, up from 7.28 in FY25. Total equity increased to ₹1,161.3 crore from ₹901.1 crore. The company generated ₹238.9 crore from operating activities, though this was lower than the ₹307.0 crore recorded in FY25.

Capital expenditure remained active with cash outflows from investing activities totaling ₹238.2 crore. This included ₹33.1 crore on property, plant, and equipment purchases as the company prepares for its upcoming expansion at Dahej.

Strategic Outlook

Management highlighted progress on Unit IV at Dahej, noting that all necessary regulatory permissions, including environmental clearance, have been obtained. Construction is expected to commence shortly, with production targeted within the next two to three years. The new facility aims to diversify product offerings into derivatives such as acetate, citrate, and succinate.

Promoter holding remained unchanged at 74.18% as of March 31, 2026. The Board also recommended ratifying the remuneration of cost auditors M/s Diwanji & Associates for FY27.