Kross Limited IPO - Check Price Range, Issue Size, Allotment Details and More
The initial public offering of Kross Limited opens for subscription on 9th September. The three-day issue will close on 11th September. The company’s IPO consists of a fresh issue and an offer for sale (OFS). Under OFS, Sudhir Rai and Anita Rai will be selling a certain part of their stakes in the company . Find out more about the IPO of this Jamshedpur-based company.
About Kross Limited
Kross Limited is a diversified player focused on manufacturing and supplying trailer axle and suspension assemblies, along with a wide range of forged and precision machined high-performance safety-critical parts for medium and heavy commercial vehicles and the farm equipment segment. The company is recognised as one of the prominent manufacturers of trailer axles and suspension assemblies in India.
Kross Limited has become one of the fastest-growing players in the organised trailer axle manufacturing industry, competing with major manufacturers. It's one of the few players domestically with the competency to manufacture trailer axles and suspension assemblies in-house.
Kross Limited IPO details
Here are the key details of this IPO:
| Particulars | Lot size, price and other details |
|---|---|
IPO opens on | 9th September |
IPO closes on | 11th September |
Fresh issue size | ₹250 crores |
Offer for sale size | ₹250 crores |
Total offer size | ₹500 crores |
Price range | ₹228 to ₹240 |
Lot size | 62 |
Minimum investment | ₹14880 |
Face value | ₹5 |
IPO registrar | KFin Technologies Ltd |
Use of IPO proceeds
The company plans to utilise the net proceeds towards:
- Funding of capital expenditure towards the purchase of machinery and equipment
- Repayment or prepayment, in full or in part, of all or a portion of certain outstanding borrowings availed by the company from banks and financial institutions
- Funding working capital requirements
- General corporate purposes
Financial overview
Here’s a financial snapshot of Kross Limited across different financial years:
| Particulars | As of March 31, 2024 | As of March 31, 2023 | As of March 31, 2022 |
|---|---|---|---|
Total equity and liabilities (in ₹ crores) | 352.004 | 250.572 | 197.824 |
Total income (in ₹ crores) | 621.464 | 489.357 | 297.881 |
Total expenses (in ₹ crores) | 560.174 | 447.647 | 281.571 |
Profit after tax (in ₹ crores) | 44.881 | 30.931 | 12.169 |
Return on net worth | 30.57% | 30.29% | 16.81% |
Basic and Diluted EPS (in ₹) | 8.30 | 5.72 | 2.25 |
Offer structure
Here’s how Kross Limited IPO is structured for various categories of investors:
| Investor type | Offer allocation |
|---|---|
Qualified institutional bidders | Not more than 50% of the offer |
Non-institutional bidders | Not less than 15% of the offer |
Retail individual bidders | Not less than 35% of the offer |
Competitive strengths of Kross Limited
Given below are the competitive strengths of Kross Limited, which are also the qualitative factors behind the offer price:
- Long-standing relationship with large OEMs and their tier-one suppliers, domestic dealers and fabricators
- Wide recognition as one of the prominent manufacturers of trailer axles and suspension assemblies in India
- Diversified product portfolio with a focus on continuous value addition
- Integrated manufacturing operations coupled with in-house product and process design capabilities
- Track record of sustained growth and robust financial performance in the last three financial years
Business strategies
Going forward, Kross Limited plans to implement the following business strategies:
- Expand capacities at its existing manufacturing facilities to increase manufacturing scale for its existing products and the creation of new products
- Create manufacturing capabilities in axle beam extrusion and backward integration capabilities into the seamless tube
- Expand its geographical reach through growing exports
- Continue to focus on reducing operating costs and improving operational efficiency
- Improve its financial profile
Wrapping it up
Before subscribing to the IPO, read the company’s red herring prospectus for due diligence. Go ahead if the IPO fits your overall financial goals and risk tolerance levels.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their own research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI prescribed Combined Risk Disclosure Document prior to investing. Brokerage will not exceed SEBI prescribed limit.
