Kross IPO subscribed over 16x on day 3 of issue, QIBs bid highest; Latest GMP here

Kross IPO: The initial public offering (IPO) of auto parts manufacturer Kross Limited was subscribed over 16 times on the third and last day of issue. The mainboard IPO of the Jamshedpur-based company opened for subscription on Monday, September 9, 2024 and closed on Wednesday, September 11.

Kross IPO's issue size is ₹500 crore. The company has reserved not more than 50 per cent of the shares in the public issue for qualified institutional buyers (QIB), not less than 15 per cent for non-institutional Institutional Investors (NII), and not less than 35 per cent of the offer is reserved for retail investors.

Also Read: Kross IPO Day 2: GMP, subscription status, review, key dates. Apply or not?

Kross IPO Subscription Status

On the third and final day of issue, Kross IPO was subscribed 16.81 times. The portion reserved for QIBs was booked the highest at 23.32 times, the portion reserved for NIIs was booked 22.24 times, and the portion reserved for retail investors was booked 10.76 times. The IPO received 25,80,21,866 share applications against 1,53,50,877 shares offered on Wednesday.

Kross IPO Details

Kross IPO consists of an offer-for-sale (OFS) by the founders totaling up to ₹250 crore and a new issue of equity shares valued at ₹250 crore. The equity shares that comprise the OFS part are valued at ₹168 crore for Sudhir Rai and ₹82 crore for Anita Rai. Sudhir Rai and Anita Rai are the company's promoters.

The price band was set at ₹228–240 per share at the face value of ₹5 per share. Bids may be placed for 62 equity shares at a minimum and subsequently in multiples of 62 equity shares.

Also Read: Kross IPO: 10 key risks investors should know before subscribing to the ₹500 crore-issue

The allotment for the Kross IPO is expected to be finalized on Thursday, September 12, 2024. Shares of Kross Limited will list on stock exchanges BSE, NSE with a tentative listing date fixed as Monday, September 16, 2024.

Kross intends to use the net proceeds of the new offering to pay down debt, support the company's working capital needs, and buy machinery and equipment. Additionally, a percentage will be applied to general business needs. Kross IPO's book-running lead manager is Equirus Capital Private Limited and the registrar for the issue is Kfin Technologies Limited.

Also Read: Kross IPO: Autoparts maker raises nearly ₹150 crore in anchor book round ahead of public issue

Kross Limited Company Details

Kross specialises in producing and providing trailer axles, suspension assemblies, and a variety of forged and precision-machined high-performance safety-critical components for medium and heavy commercial vehicles (M&HCV) and farm equipment sectors.

The company specialises in producing safety-critical components for the M&HCV segment and a wide range of high-performance and safety-critical components for the farm equipment segment. 

These components encompass axle shafts, companion flanges, anti-roll bars, stabilizer bar assemblies, suspension linkages, differential spiders, bevel gears, planet carriers, inter-axle kits, rear-end spindles, pole wheels, and various tractor components for hydraulic lift arrangements, power take-off (PTO) shafts, and front axle spindles.

Also Read: Kross IPO: Price band set at ₹228-240 per share per share; check other details here

Kross IPO GMP today

Kross IPO GMP today or grey market premium is +50. This indicates Kross share price was trading at a premium of ₹50 in the grey market, according to investorgain.com

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Kross shares was ₹290 apiece, which is 20.83 per cent higher than the IPO price of ₹240.

The GMP ranges from Re 0 to ₹50, as indicated by experts at investorgain.com. 'Grey market premium' indicates investors' readiness to pay more than the issue price.