Updated on: October 8, 2024 4:25 pm GMT
On September 9, 2023, Kross Limited, a prominent trailer axle and suspension assembly manufacturer in India, will launch its initial public offering (IPO). The subscription period will last until September 11, allowing investors a brief window to participate in this hotly anticipated market event.
Kross Limited, formerly known as Kross Manufacturers (India) Private Limited, has built a significant reputation since its founding in 1991. The company specializes in the production and supply of trailer axles and suspensions, contributing to a diverse portfolio of high-performance forged and precision machined components critical for medium and heavy-duty commercial vehicles (M&HCV) and agricultural machinery.
Kross has demonstrated a strong financial performance in recent years. For the fiscal year 2024, the company reported a net profit of ₹44.9 crore, marking an impressive increase of 45.1%. Revenues also surged by 27%, reaching ₹620.3 crore, a significant achievement that underscores the company’s growth trajectory. Furthermore, the company’s earnings before interest, tax, depreciation, and amortization (EBITDA) rose by 40.4% to ₹80.8 crore, with EBITDA margins improving by 120 basis points to 13% compared to the previous fiscal year.
The Kross IPO has been structured as a book-built issue with a total size of ₹500 crore. It consists of a fresh issue of 1.04 crore shares amounting to ₹250 crore and an equal number of shares offered for sale, totaling another ₹250 crore. The price band for the shares is set between ₹228 and ₹240, making it relatively accessible for retail investors.
Investors will need to apply for a minimum of 62 shares, translating to a minimum investment of ₹14,880. This small lot size helps lower the entry barrier for retail investors interested in participating in the IPO.
The Kross IPO is led by company promoters Sudhir Rai and Anita Rai, who have played crucial roles in steering the company towards its current position. Equirus Capital Private Limited is appointed as the book-running lead manager for the IPO, while KFin Technologies will serve as the registrar.
The allotment for the Kross IPO is expected to be finalized on Thursday, September 12. Investors can anticipate the listing of shares on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on September 16. As of recent reports, the shares are trading at ₹0 in the grey market premium, indicating initial market interest, albeit without premium pricing as of now.
This IPO offers a unique opportunity for investors looking to capitalize on the growth potential of the automotive components sector, especially in the context of India’s expanding commercial vehicle market. Kross’s impressive financial results and established market presence provide a compelling value proposition for potential subscribers. However, investors are encouraged to conduct thorough research and consider market sentiments before making an investment decision.
<pFor real-time updates and business news related to market trends and investment strategies, investors can stay connected through Kross Limited's official social media channels.
As the IPO date approaches, investor sentiment appears cautiously optimistic. The Kross IPO is viewed as a pivotal event, reflecting broader trends in the automotive and industrial sectors. Analysts suggest that increased demand for commercial vehicles, driven by economic growth and infrastructural development in India, could bode well for the company’s future performance post-listing.
With a solid financial track record and strategic market positioning, Kross’s imminent IPO reflects its potential to attract significant investor interest. As market conditions continue to evolve, this IPO will be closely monitored by both institutional and retail investors alike.
| Date | Event |
|---|---|
| September 9, 2023 | IPO Opens for Subscription |
| September 11, 2023 | IPO Closes |
| September 12, 2023 | Allotment Date |
| September 16, 2023 | Listing Date on NSE, BSE |
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