The IPO of Kross is structured as a book-built issue totaling Rs 500.00 crores. The issue consists of a combination of a fresh issue of 1.04 crore shares, aggregating to Rs 250.00 crores, and an offer for sale of 1.04 crore shares, also aggregating to Rs 250.00 crores.
The Kross IPO opened for subscription on September 9, 2024, and is set to close today, September 11, 2024. The finalization of the allotment for the Kross IPO is expected to occur on Thursday, September 12, 2024. The listing of the Kross IPO on BSE and NSE is anticipated, with the tentative listing date set for Monday, September 16, 2024.
The price band for the Kross IPO is set between ₹228 and ₹240 per share. A minimum lot size of 62 shares is required for an application. The minimum investment amount required by retail investors is ₹14,880. For sNII investors, the minimum lot size investment is set at 14 lots (868 shares), amounting to ₹208,320, while for bNII investors, it is set at 68 lots (4,216 shares), amounting to ₹1,011,840.
Refer to Kross IPO RHP for brief information.
| IPO Date | September 9, 2024 to September 11, 2024 |
| Listing Date | September 16, 2024 |
| Face Value | ₹ 5 / Share |
| Price Band | ₹ 228 to ₹ 240 / Share |
| Lot Size | 62 Shares |
| Total Issue Size | 20,833,334 shar (Aggregating up to ₹500.00 Cr) |
| Fresh Issue | 10,416,667 sha (Aggregating up to ₹250.00 Cr) |
| Offer for Sale | 10,416,667 shar (Aggregating up to ₹250.00 Cr) |
| Employee Discount | |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 54,092,756 |
| Share holding post issue | 64,509,423 |
| Market Maker portion |
Kross Limited IPO opens on September 9, 2024, and closes on September 11, 2024.
| IPO Open Date | September 9, 2024 |
| IPO Close Date | September 11, 2024 |
| Basis of Allotment | September 12, 2024 |
| Initiation of Refunds | September 13, 2024 |
| Credit of Shares to Demat | September 13, 2024 |
| Listing Date | September 16, 2024 |
| Cut-off time for UPI mandate confirmation | September 11, 2024 |
A minimum of 62 shares can be bid for by investors, with additional shares being bid in multiples thereof. The minimum and maximum investments by retail investors and HNI, in terms of shares and amount, are depicted in the table below.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 62 | Rs.14,880 |
| Retail (Max) | 13 | 806 | Rs.193,440 |
| S-HNI (Min) | 14 | 868 | Rs.208,320 |
| S-HNI (Max) | 67 | 4,154 | Rs.996,960 |
| B-HNI (Min) | 68 | 4,216 | Rs.1,011,840 |
| HNI (Min) |
| Share Holding Pre Issue | 100.00% |
| Share Holding Post Issue | 67.7 % |
A total of 2,08,33,332 shares are offered in the Kross IPO, with 41,66,667 shares (20%) allocated to QIBs, 31,25,000 shares (15%) allocated to NIIs, 72,91,666 shares (35%) allocated to RIIs, and 62,49,999 shares (30%) allocated to Anchor investors.
| Investor Category | Shares Offered | Maximum Allottees |
|---|---|---|
| Anchor Investor Shares Offered | 62,49,999 (30%) |
NA |
| Market Maker Shares Offered | |
|
| Other Shares Offered | |
|
| QIB Shares Offered | 41,66,667 (20%) |
NA |
| NII (HNI) Shares Offered | 31,25,000 (15%) |
|
| bNII > ₹10L | 20,83,534 (10%) |
2,400 |
| sNII < ₹10L | 10,41,466 (5%) |
1,199 |
| Retail Shares Offered | 72,91,666 (35%) |
1,17,607 |
| Employee Shares Offered | |
|
| Total Shares Offered | 2,08,33,332 (100%) |
An amount of Rs 150.00 crores has been raised from anchor investors through the Kross IPO. The anchor bid date for the Kross IPO is set for September 6, 2024. The list of Kross IPO anchor investors is provided.
| Bid Date | |
| Shares Offered | 62,49,999 |
| Anchor Portion Size (In Cr.) | 150.00 |
| Anchor lock-in period end date for 50% shares (30 Days) | October 12, 2024 |
| Anchor lock-in period end date for remaining shares (90 Days) | December 11, 2024 |
Kross Ltd. is a multifaceted company that specializes in producing and distributing an extensive array of precision machine and forged parts for the medium and heavy commercial vehicle (M&HCV) and agricultural equipment markets.
For the M&HCV and farm equipment markets, they thereby provide a varied portfolio of high-performance and safety-critical components. Nonetheless, they are regarded as an expert in producing safety-critical parts for the M&HCV market, such as suspension links, companion flanges, axle shafts, anti-roll bars, and stabiliser bar assemblies. Additionally, they manufacture a large selection of tractor parts for the front axle spindles, power take-off shafts, and hydraulic lift arrangement.
The company provides its goods to a wide range of customers, comprising major M&HCV and tractor original equipment manufacturers (OEMs) and leading suppliers to these OEMs. Their trailer axle and suspension company also caters to domestic dealers and fabricators.
From FY 2024 to FY 2029, the MHCV industry is projected to expand at a compound annual growth rate of 2-4 percent. In the Indian tractor industry, the compound annual growth rate from 2018 to 2023 was 5.4%. Given the growth potential of the industries that purchase its products, Kross Ltd.'s revenue could rise as well.
The market capitalization of Kross IPO is Rs 1548.23 Cr.
KPI as of March 31, 2024.
| KPI | Values |
|---|---|
| ROE | 30.57% |
| ROCE | 28.15% |
| Debt/Equity | |
| RoNW | 30.57% |
| P/BV | 8.84 |
| PAT Margin (%) | 7.22 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | 8.3 | 6.96 |
| P/E (x) | 28.93 | 34.5 |
The Pre IPO EPS is calculated based on Pre issue shareholding as on date of RHP and the latest FY earnings as of March 31, 2024 that is available in RHP.
The Post Issue EPS is calculated based on the Post issue shareholding and annualized FY earnings of March 31, 2024 that is available in RHP.
The Net Proceeds are proposed to be utilized by the Company towards funding the following objects:
- Funding of capital expenditure requirements of the Company 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 of the Company
- General corporate purposes
Kross Limited M-4, Phase VI, Gamharia, |
Kfin Technologies Limited Phone: 04067162222, 04079611000 |
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