Indo Borax buys 64.26% of Kronox Lab for ₹246 cr deal

Deal snapshot: change of control at Kronox

Indo Borax & Chemicals Ltd has completed the acquisition of a controlling stake in Kronox Lab Sciences Ltd, making it the majority shareholder. The company disclosed that it finalised the purchase of 2,38,44,000 equity shares on September 29, 2026. Those shares represent 64.26% of Kronox’s total paid-up equity share capital. The disclosure was made under the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 (SAST Regulations). Sunil Malhotra, Director at Indo Borax & Chemicals, signed the disclosure and requested stock exchanges to take the information on record. The transaction was executed through an off-market share purchase agreement.

What Indo Borax bought and at what price

The acquisition was approved by Indo Borax’s Board of Directors in a meeting held on August 20, 2026, which cleared the execution of the share purchase agreement. Indo Borax agreed to acquire 64.26% of Kronox for an aggregate consideration of ₹246.12 crore. The deal involves the purchase of 2.38 crore equity shares from Kronox’s promoters: Ketan Vinodchandra Ramani, Pritesh Vinodchandra Ramani, and Jogindersingh Gianchand Jaswal. The disclosed price under the agreement is ₹103.22 per share.

A footnote in the disclosure notes that, for regulatory calculation purposes, the effective price works out to ₹105.87 per share once consultancy fees payable by Kronox to the sellers under transition support arrangements are included, as calculated under Regulation 8(7) of the SAST Regulations.

Zenrock Chemicals joins as a person acting in concert

Zenrock Chemicals Private Limited (ZCPL) is participating in the transaction as a person acting in concert with Indo Borax. The disclosure states that Indo Borax and ZCPL together acquired the 64.26% stake (2.38 crore shares) at ₹103.22 per share via the off-market share purchase agreement. The entire consideration for the private agreement and the open offer is to be paid in cash through electronic transfer.

Mandatory open offer: size and price

Because the acquisition grants Indo Borax control and voting rights exceeding 25% of Kronox’s share capital, it triggers a mandatory open offer under the SAST Regulations. Indo Borax, along with ZCPL, will make an open offer to public shareholders to acquire up to 95.7 lakh equity shares. This open offer size represents about 25.79% of Kronox’s voting share capital. The offer price is set at ₹157.27 per equity share, determined in accordance with the SAST Regulations.

Promoters exit control, retain 9.95% stake

Post-transaction, Kronox’s erstwhile promoters will retain a 9.95% stake in the company. The disclosure also states that the promoters will provide transition support after the acquisition. Before this change in control, promoters held 74.21% as of June 2026, broadly unchanged since June 2025. Institutional ownership as of June 2026 included FIIs at 0.04% and DIIs at 2.07%.

About Kronox: high purity speciality fine chemicals

Kronox Lab Sciences Ltd is engaged in manufacturing high purity fine and inorganic chemicals, phosphates and metallic chemicals. It supplies products used across pharmaceuticals, nutraceuticals, veterinary, food, chemical analysis and other specialty markets. The company’s product mix includes bulk reagents such as ACS reagents and LR, AR, and GR reagents. It also sells bulk ingredients for segments including oral care, pharmacopoeia, food and nutraceutical, personal care and cosmetics, and veterinary pharma and animal health. Its specialty chemicals include tartrates, citrates, hypophosphites, phosphates, hydroxides, EDTA and derivatives, ultra high purity chemicals, and custom specification products.

Incorporated in 2008, Kronox is based in Vadodara, Gujarat. The company operates multiple manufacturing units and markets a portfolio of more than 185 products across domestic and export markets.

Financial performance: FY24 to FY26 and latest quarter

Kronox reported turnover of ₹101.22 crore in FY26, compared with ₹100.19 crore in FY25 and ₹89.86 crore in FY24. For FY26, the company reported profit after tax of approximately ₹28 crore.

For the quarter ended June 2026, Kronox reported sales of ₹28.39 crore and net profit of ₹7.3 crore. Sales were up 16.9% from ₹24.29 crore a year earlier, while net profit was up 16.2% year on year.

Key facts table

Disclosures, identifiers, and upcoming corporate date

The disclosures referenced include filings under Regulation 29(1) and Regulation 18(6) of the SAST Regulations. Kronox trades as KRONOX on the NSE and 544187 on the BSE, with ISIN INE0ATZ01017. The company’s annual general meeting was scheduled for September 16, 2026. Separately, the data cited in the announcement noted that on June 6, 2025 at 10:01 AM, the share price was ₹220 on the NSE and ₹223 on the BSE.

Market impact: what this transaction changes

The most direct market implication is the formal change in control and the requirement to run a mandatory open offer for up to 25.79% of the company at a disclosed price of ₹157.27 per share. The transaction also alters the ownership profile, with promoters moving from a 74.21% holding (as of June 2026) to a 9.95% stake after the acquisition, while remaining involved through transition support arrangements. Indo Borax stated the acquisition is not classified as a related-party transaction, and that no promoter or group company holds an interest in the target entity.

The disclosure also notes that no governmental or regulatory approvals are required for the deal. Indo Borax previously indicated it expected to complete the acquisition within three months of the public announcement, and it has now disclosed completion of the 64.26% acquisition on September 29, 2026.

Conclusion

Indo Borax’s acquisition of a 64.26% stake in Kronox Lab Sciences for ₹246.12 crore hands it majority ownership in a high-purity speciality fine chemicals manufacturer with a portfolio of more than 185 products. The deal triggers a mandatory open offer for up to 25.79% at ₹157.27 per share and leaves the erstwhile promoters with a 9.95% holding and transition support responsibilities. The next steps for investors are to track the open offer process and subsequent stock exchange disclosures under the SAST framework.