The price band for the IPO of Kross Limited, formerly known as Kross Manufacturers (India) Private Limited, has been set between ₹228 and ₹240 per share. The company aims to raise ₹500 crore through this initial public offering, which includes a fresh issue of 1.04 crore shares totaling ₹250 crore and an offer for sale of 1.04 crore shares also aggregating to ₹250 crore.
The IPO will be open for bidding from Monday, September 9, to Wednesday, September 11. Of the total offering, 50% is reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and the remaining 15% for Non-Institutional Investors (NIIs).
Equirus Capital Private Limited is serving as the book-running lead manager for the Kross IPO, while Kfin Technologies Limited is the registrar.
The company plans to use the net proceeds from the IPO for several purposes, including funding capital expenditure for purchasing machinery and equipment, repaying or prepaying certain outstanding borrowings, funding working capital requirements, and covering general corporate purposes.
The allotment of shares for the Kross IPO is expected to be finalized on Thursday, September 12, 2024, with the tentative listing on both the BSE and NSE scheduled for Monday, September 29, 2024.
Retail investors can participate in the IPO by bidding for a minimum of one lot, which consists of 62 shares, requiring a minimum investment of ₹14,880.
Kross is a diversified player focused on the manufacturing and supply of trailer axles, suspension assemblies, and a wide range of forged and precision-machined high-performance safety-critical parts for medium and heavy commercial vehicles (M&HCV) and farm equipment segments.
The company in its DRHP report said that it is widely recognized as one of the prominent manufacturers of trailer axles and suspension assemblies in India. In 2019, the company commenced the manufacture and sale of trailer axles and suspension assemblies and has witnessed robust growth over the past three years, between Fiscal 2020 and Fiscal 2023.
With a wide range of high-performance and safety-critical components for the M&HCV and farm equipment segments, the company specializes in manufacturing safety-critical components for the M&HCV segment.
These include 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 a variety of tractor components for hydraulic lift arrangements, power take-off (PTO) shafts, and front axle spindles.
The company has become one of the fastest-growing players in the organized trailer axle manufacturing industry, competing with major trailer axle manufacturers.
It has established long-term relationships with several large domestic and global OEMs, including Ashok Leyland Limited, a leading Indian automobile OEM, and a major Indian farm equipment OEM, both of whom it has been associated with for more than 18 years. Additionally, it has been associated with Tata International DLT Private Limited since 2019.
The company operates out of five manufacturing facilities in Jamshedpur, Jharkhand
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