Kronox Lab Sciences shares surged over 10% to ₹205.75 on the BSE on Friday following the announcement of the acquisition plans by Indo Borax and Zenrock Chemicals. According to The Economic Times, the rally represents a 32% gain in just two days as investors responded positively to the strategic move. The market response reflects investor confidence in the acquisition's potential to enhance Kronox's growth prospects and strategic positioning in the specialty chemicals sector.
The board of Indo Borax & Chemicals has officially approved the acquisition of a majority stake in Kronox Lab Sciences at its meeting held on 20 August 2026. The board approved the execution of a share purchase agreement for acquiring 2.38 crore equity shares of Kronox Lab Sciences, representing 64.26 percent of the company's share capital. As reported by The Hindu BusinessLine, the transaction represents a significant strategic move by Indo Borax & Chemicals to expand its presence in the specialty chemicals sector through this substantial equity stake acquisition. The sellers include Kronox Lab Sciences' promoters Ketan Vinodchandra Ramani, Pritesh Vinodchandra Ramani and Jogindersingh Gianchand Jaswal, collectively along with Zenrock Chemicals Private Limited. The acquisition triggers a mandatory open offer under SEBI regulations to acquire up to 25.79% of additional shares at ₹157.27 per share, with the entire consideration to be paid in cash via electronic transfer. The transaction will see Indo Borax become Kronox's new promoter and marks a change in management and control of the company.
The aggregate consideration for the acquisition is ₹246.12 crore, with the shares being acquired at a cost of ₹103.22 per equity share. As reported by HDFC Securities, the acquisition involves 2,38,44,000 equity shares of face value of ₹10 each of Kronox Lab Sciences. However, the effective price including consultancy fees payable by Kronox to the sellers under transition support arrangements is ₹105.87 per share, as calculated under Regulation 8(7) of the SAST Regulations. The open offer will target up to 95.7 lakh equity shares, representing approximately 25.79% of Kronox Lab Sciences' voting share capital. The transaction represents a significant strategic investment by Indo Borax & Chemicals in the specialty chemicals sector, with the acquisition expected to be completed within three months of the public announcement.
According to the company's exchange filing reported by HDFC Securities, the acquisition is part of a long-term strategy to diversify Indo Borax & Chemicals' portfolio by investing in sectors that demonstrate stability and growth potential. Kronox Lab Sciences, incorporated in 2008, is engaged in manufacturing high-purity specialty fine chemicals, including excipients, reagents, buffers, and intermediates, for diversified end-user industries such as pharmaceuticals, nutraceuticals, biotechnology, agrochemicals, scientific research, laboratory testing, metallurgy and personal care. Based in Vadodara, Gujarat, the target company operates multiple manufacturing units and markets a portfolio of more than 185 products across domestic and export markets. The company reported a revenue of around ₹101 crore and profit after tax of about ₹28 crore for FY26, showing modest growth from ₹100.19 crore in FY25 and ₹89.86 crore in FY24. The acquisition therefore gives Indo Borax exposure to a business operating across specialty chemical and laboratory-related applications, making it a strategic fit for the company's expansion plans.
The acquisition brings significant changes to Kronox Lab Sciences' boardroom structure. As reported by The Hindu BusinessLine, Indo Borax will appoint three nominee directors to Kronox's board, while the existing promoters will resign as directors following completion of the transaction. However, the founders will continue to have a role during the transition period. The sellers will enter into consultancy agreements with Kronox following completion of the transaction to provide transition support. The sellers currently collectively hold 74.21 percent of Kronox and will retain an aggregate 9.95 percent stake after the transaction, with their remaining shares subject to a lock-in for a specified period. The sellers have undertaken certain non-compete and non-solicit obligations for a specified period under the SPA and agreed to operate the company in the ordinary course until completion. Following the acquisition, Indo Borax & Chemicals will acquire control and voting rights of 25.79% of the voting share capital of Kronox Lab Sciences.
Suresh Kalra, Managing Director and CEO of Indo Borax Chemicals Ltd, described the move as the beginning of a new chapter focused on expansion, diversification, premiumisation, and margin improvement. He noted that Kronox's rich experience and export presence would strengthen Indo Borax's offerings and help fortify margins. Ketan Ramani, Promoter and Director of Kronox Lab Sciences Ltd, thanked stakeholders for their support and highlighted the company's journey from inception to its public listing in 2024. He stated that joining hands with Indo Borax would enable Kronox to accelerate its growth plans, expand its product profile, and explore new avenues. The transaction is subject to fulfilment of conditions precedent and other terms of the SPA, as well as compliance with applicable takeover regulations. The sellers will cease to be in control of Kronox and be reclassified as public shareholders upon completion, while Indo Borax will become the promoter and Zenrock Chemicals the promoter-group entity. The company also intends to nurture and expand Kronox Lab Sciences' business and maximise value creation for all stakeholders.
