Kross IPO Opens for Subscription Today with Positive Analyst Ratings

The initial public offering (IPO) of Kross Limited, a manufacturer of trailer axle and suspension assemblies, has opened for public subscription today, September 9, 2024. The IPO will be available for bidding until September 11, 2024.

Kross Limited is recognized for its diverse manufacturing capabilities within the trailer axle and suspension assembly sector, and it also produces forged equipment for both farm equipment and commercial vehicles.

The IPO comprises a total issue size of ₹500 crore, which includes a fresh issue of 1.04 crore shares amounting to ₹250 crore and an offer for sale of an additional 1.04 crore shares, also valued at ₹250 crore. The price band for the shares has been set between ₹228 and ₹240, with a face value of ₹5 per share.

The allocation for institutional investors stands at approximately 50%, with 35% reserved for retail investors and around 15% for non-institutional investors. Notably, the company reported a significant financial performance in the fiscal year 2024, with a net profit increase of 45.1% to ₹44.9 crore and a revenue growth of 27% to ₹620.3 crore compared to the previous fiscal year.

Brokerage firms, including SBI Securities and Deven Choksey Research, have recommended subscribing to the Kross IPO based on the company’s strong growth track record and financial health. SBI Securities highlights that the company is fairly valued at a post-issue price-to-earnings (P/E) ratio of 34.5 based on fiscal year 2024 earnings.

The proceeds from the IPO are intended to be utilized primarily for loan repayments and capital expenditures, with allocations of approximately ₹90 crore for debt repayment, ₹70 crore for purchasing machinery, and ₹30 crore for working capital needs.

The allotment for shares is expected to be finalized on September 12, 2024, with the listing of shares anticipated on both the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on September 16, 2024. Equirus Capital Private Limited is acting as the book-running lead manager for this IPO.