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About Kross Ltd IPO
The Kross IPO is a book-built offering of Rs 500.00 crores. It comprises a fresh issue of 1.04 crore shares totalling Rs 250.00 crores and an offer for sale of 1.04 crore shares amounting to Rs 250.00 crores.
Subscription for the Kross ltd IPO commences on September 9, 2024, and concludes on September 11, 2024. The allocation for the Kross IPO is anticipated to be completed by Thursday, September 12, 2024. The Kross IPO is set to be listed on BSE and NSE, with a tentative listing date of Monday, September 16, 2024.
The IPO price band for Kross limited ranges from Rs 228 to Rs 240 per share. The minimum lot size for an application is 62 shares. Retail investors are required to make a minimum investment of Rs 14,880.
Small net institutional investors (sNII) must invest in at least 14 lots (868 shares), amounting to Rs 2,08,320. As for big net institutional investors (PII), the minimum lot size investment is 68 lots (4,216 shares), totalling Rs 10,11,840.
Equirus Capital Private Limited is the book-running lead manager for the Kross IPO. KFin Technologies Limited has been appointed as the issue’s registrar.
Kross Limited IPO Details:
| Particulars | Details |
| IPO Date | September 9, 2024 to September 11, 2024 |
| Face Value | Rs 5 per share |
| Price Band | Rs 228 to Rs 240 per share |
| Kross Limited Lot Size | 62 Shares |
| Total Issue Size | 2,08,33,334 shares (aggregating up to Rs 500.00 Cr) |
| Fresh Issue | 10,416,667 shares (aggregating up to Rs 250.00 Cr) |
| Offer for Sale | 10,416,667 shares of Rs 5 (aggregating up to Rs 250.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre-issue | 5,40,92,756 |
| Shareholding post-issue | 6,45,09,423 |
Main Events and Schedules
| Particulars | Details |
| Kross ltd IPO Open Date | Monday, September 9, 2024 |
| Kross ltd IPO Close Date | Wednesday, September 11, 2024 |
| Basis of Allotment | Thursday, September 12, 2024 |
| Initiation of Refunds | Friday, September 13, 2024 |
| The credit of shares to demat | Friday, September 13, 2024 |
| Listing Date | Monday, September 16, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 11, 2024 |
Investors’ category and shares offered
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.03% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Application category, Kross Ltd Lot Size, Shares Offered, And Their Value
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 62 | Rs 14,880 |
| Retail (Max) | 13 | 806 | Rs 1,93,440 |
| S-HNI (Min) | 14 | 868 | Rs 2,08,320 |
| S-HNI (Max) | 67 | 4,154 | Rs 9,96,960 |
| B-HNI (Min) | 68 | 4,216 | Rs 10,11,840 |
Investor categories and shares offered
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.03% of the Net Issue |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Kross Limited IPO GMP:
The last Grey Market Premium (GMP) for Kross IPO is Rs 0, as of the latest update on Sep 6th, 2024, at 12:57 PM. The price band for the IPO ranges from Rs 228 to Rs 240.00. The estimated listing price for Kross IPO is Rs 240, which is derived by adding the cap price to today’s GMP. The expected percentage gain/loss per share is 0.00%.
Kross Limited Company Details:
Kross Limited, established in 1994, manufactures high-quality trailer axle and suspension assemblies and a wide range of safety-critical parts for commercial vehicles and farm equipment.
The company operates five manufacturing facilities in Jamshedpur, Jharkhand, focusing on forging, casting, precision machining, and other processes. Kross has a dedicated R&D department and holds certifications for quality standards.
The company has experienced robust growth since commencing trailer axle and suspension assembly manufacturing in 2019 and aims to strengthen its position in the industry.
Kross offers domestic and international clients a diversified portfolio of components and supplies, maintaining strong long-term relationships based on quality, delivery, and price. The company is led by Chairman and Managing Director Sudhir Rai, and it has a dedicated and motivated team committed to its success.
Kross Limited owns five ISO 9001:2015-approved production facilities located in Jamshedpur, Jharkhand. These facilities can produce forgings weighing up to 40 kg.
The production facilities are furnished with –
(i) Press machines for shaping metal and production lines for compressing and reshaping metal, all of which use induction heating for billets.
(ii) a foundry that has a high-pressure moulding line.
(iii) High-precision machining equipment like lathes, vertical and horizontal milling machines, grinders, broaching, hobbing, and shaping machines, as well as automated welding systems.,
(iv) a cathodic electro-dip painting system (“CED system”), powder coating, and spray painting, all of which is done in-house.
(v) heat processing furnaces and induction hardening systems.
Financials of Kross Limited:
Extract from the financial statements
| Period Ended | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
| Assets (Rs in crores) | 352 | 250.57 | 197.82 |
| Revenue (Rs in crores) | 621.46 | 489.36 | 297.88 |
| Profit After Tax (Rs in crores) | 44.88 | 30.93 | 12.17 |
| Net Worth (Rs in crores) | 146.81 | 102.11 | 72.4 |
| Reserves and Surplus (Rs in crores) | 119.76 | 88.58 | 58.88 |
| Total Borrowing (Rs in crores) | 117.9 | 88.26 | 86.06 |
Key ratios
| KPI (Key Performance Indicator) | Values |
| ROE (Return on Equity) | 30.57% |
| ROCE (Return on Capital Employed) | 28.15% |
| RoNW (Return on Net Worth) | 30.57% |
| P/BV (Price to Book Value) | 8.84 |
| PAT (Profit After Tax) Margin (%) | 7.22 |
Kross Limited IPO RHP details – the Risks
1. Risks related to customers
The company heavily relies on sales from its top five customers for most of its revenue. The potential risks of losing a significant portion of sales from any of these large customers due to various reasons such as contract loss, disputes, financial decline, or production issues, are significant. It is crucial to have a robust risk mitigation plan in place to protect the company’s business, financial condition, and cash flows.
2. Risks Related to Sales
The company’s product demand depends on its customers’ vehicle sales growth and trends. A decrease in its customers’ sales could negatively impact the market for its products, subsequently affecting its business, financial condition, results of operations, and prospects.
3. Risks related to supply of materials
The company depends heavily on revenue from selling trailer axle and suspension assemblies and forged and precision machined high-performance safety-critical parts for medium and heavy commercial vehicles (M&HCV) and farm equipment.
According to the Crisil Report, adopting electric vehicles (EVs) in the heavy commercial vehicle (HCV) segment is expected to be minimal shortly. In contrast, adoption in other vehicle segments is projected to be faster due to government policies, financial incentives, price reductions, technology changes, and shifts in consumer preferences.
If the adoption of battery-electric vehicles in the M&HCV and farm equipment segments significantly increases, potential market shrinkage for their products could pose a substantial risk to the company’s financial condition, cash flows, and results of operations.
4. Other Risks
Any disruption in the production of the main products of the company. Say from shut down of any manufacturing processes due to any unforeseen events which aren’t in control may result in adverse effects on the company’s business operations, financial conditions, etc.
Objectives of Kross Limited IPO:
The company plans to use the net proceeds of the IPO for the following purposes:
1. Funding capital expenditure for the purchase of machinery and equipment
2. Repayment or prepayment of outstanding borrowings from banks and financial institutions
3. Funding working capital requirements
4. General corporate purposes
Frequently Asked Questions (FAQs)
When is the Kross Ltd IPO Listing Date?
The tentative listing date of Kross limited IPO is on Monday, September 16, 2024.
What is the Kross limited IPO Price Band?
The price band of Kross limited IPO is between Rs 228 and Rs 240 per share.
Who’s the registrar of the Kross limited IPO?
The registrar of the Kross limited IPO is KFin Technologies Limited.
Who is the book-running lead manager for the IPO?
The book-running lead manager for the Kross IPO is Equirus Capital Private Limited.
What are the Kross Limited Owner details?
The promoters of the company are Sudhir Rai and Anita Rai. They jointly hold 100% of the company’s shares.
From where you can download the offer-related documents of Kross Limited IPO?
The DHRP (Draft Red Herring Prospectus) and RHP (Red Herring Prospectus) can be downloaded from the SEBI’s website.
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