Rs 246 Crore Acquisition: Indo Borax & Chemicals to Acquire 64.26% Stake in Kronox Lab Sciences; Share Price Rises 7%

On Thursday, Indian equity benchmark indices traded higher, with the Nifty 50 rising 0.55 per cent to 24,211.30. Amid the market movement, Indo Borax & Chemicals shares were trading at Rs 464.30, up Rs 30.45 or 7.02 per cent. The stock's previous close was Rs 433.85, based on the change reported in the trading data. The sharp movement came after the company announced a major acquisition of Kronox Lab Sciences Ltd.

Indo Borax to Acquire Stake in Kronox Lab Sciences

The Board of Directors of Indo Borax & Chemicals has approved the execution of a Share Purchase Agreement to acquire 2,38,44,000 equity shares of Kronox Lab Sciences, representing 64.26 per cent of its share capital, from the company's promoters.

The acquisition will be made at Rs 103.22 per share, resulting in an aggregate consideration of approximately Rs 246.12 crore. The transaction involves the promoters of Kronox Lab Sciences, namely Ketan Vinodchandra Ramani, Pritesh Vinodchandra Ramani and Jogindersingh Gianchand Jaswal.

The filing further states that the effective per-share price, including consultancy fees payable under transition support consultancy arrangements, works out to Rs 105.87 per share.

Mandatory Open Offer for 25.79per cent Stake

Following the acquisition, Indo Borax will acquire control and voting rights exceeding 25 per cent of Kronox Lab Sciences. Consequently, the company, along with Zenrock Chemicals Private Limited, will make a mandatory open offer under the SEBI Substantial Acquisition of Shares and Takeovers Regulations.
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The open offer will cover up to 95,70,000 equity shares, representing approximately 25.79 per cent of Kronox Lab Sciences' voting share capital. The open offer price has been determined at Rs 157.27 per equity share in accordance with the applicable SAST Regulations.

The acquisition and open offer will be undertaken through cash consideration, while the company expects the acquisition to be completed within three months of the public announcement, subject to the applicable process.

Specialty Fine Chemicals Business

Kronox Lab Sciences is engaged in the manufacturing of high-purity specialty fine chemicals for diversified end-user industries. According to the filing, the acquisition is part of Indo Borax's long-term strategy to diversify its portfolio and invest in sectors that demonstrate stability and growth potential. The company also intends to nurture and expand Kronox Lab Sciences' business and create value for stakeholders.

Kronox Lab Sciences is listed on both the NSE and BSE, with its registered office located in Vadodara, Gujarat. The company reported turnover of Rs 101.22 crore in FY26, compared with Rs 100.19 crore in FY25 and Rs 89.86 crore in FY24.

About Indo Borax & Chemicals

Indo Borax & Chemicals is engaged in the chemicals business and is listed on both the NSE and BSE. The company is headquartered in Mumbai and has stated that the proposed Kronox Lab Sciences acquisition forms part of its long-term strategy to diversify its portfolio and expand into businesses with stability and growth potential.

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Disclaimer: The article is for informational purposes only and not investment advice.