Kross IPO Gets Subscription Worth Over Rs 6,000 Cr

The initial public offering (IPO) of Kross opened for public subscription on 9 September in an attempt to raise Rs 500 crore from the public market.

During its subscription phase, the IPO received a total subscription of 17.66 times. The retail category bid with a total subscription of 11.26 times, while qualified institutions subscribed to the IPO 24.55 times.

The Rs 500 crore IPO consisted of fresh issues of up to Rs 250 crore and an offer-for-sale (OFS) worth Rs 250 crore by promoter and investor selling shareholders. The price band for the issue was fixed at Rs 228 to Rs 240 per equity share.

The issue opened on 09 September and closed on 11 September. The allotment for the issue will be finalised on 12 September, followed by its listing on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on 16 September.

Equirus Capital is the book-running lead manager, while Kfin Technologies is the registrar to the offer.

Listing Gains
“Kross was able to create above-average demand in the market among participants. We anticipate a 20 per cent listing gain. Kross is a diversified player focused on the manufacturing and supply of auto components for the M&HCV and farm equipment segments. The upcoming technological advancements in axle beam extrusion and seamless tube manufacturing are set to provide a first-mover advantage, further strengthening Kross’s market position,” said Sagar Shetty, Research Analyst, StoxBox.

With the China +1 move working in favor of Indian OEMs, the company is well-positioned to capitalize on such international opportunities, further enhancing the company’s geographical coverage. Therefore, we advise participants who are allocated shares to hold onto them for a medium to long-term period, added Shetty.

IPO Objectives
The net proceeds of Rs 250 crore from the fresh issue will be utilized towards the purchase of machinery and equipment and the repayment of outstanding borrowings.

Additionally, the funds will also be used for funding capital expenditure requirements for the purchase of equipment and general corporate purposes.

Moreover, the firm will benefit from listing on the public market, which will enhance the brand’s visibility and provide liquidity to shareholders.

Firm’s Financials
Kross registered revenue of Rs 621 crore in FY 23-24, compared to Rs 489 crore in FY 22-23. The profit after tax (PAT) increased to Rs 44.88 crore in FY 24, up from Rs 30.93 crore in FY 23.

Overall, revenue increased by 27 per cent, while PAT climbed 45 per cent between FY 23 and FY 24.