Get complete details on Kross Limited’s IPO date, price, allotment status, and more.
Kross Limited manufactures high-performance safety components for the tractor, trailer axle, and commercial vehicle industries, utilizing advanced machinery. It has published that its IPO is going to be open on 9th September and will end on 11th September. It aims to gather INR 500 crores with the price band of INR 228 to INR 240 per share.
Table of Contents
- Company Overview
- Company Strategy
- Details on IPO Date and Price Band
- IPO Objective
- Market Lot Information on Kross Limited IPO
- Allotment Dates for Kross Limited IPO
- Application Process of IPO
- Financial Analysis of Company
- IPO Valuation
- Competitor Analysis
- Registrar for Kross Limited IPO
- Offer Lead Manager
- Company Address
Company Overview
Kross Limited is engaged in the production of a large variety of safety products for tractors, trailer axles, and light to medium commercial vehicles. The company has five large manufacturing units in Jamshedpur, Jharkhand, with sophisticated technology for forging presses, precision machines, and foundries. Kross works with a broad range of customers, from big OEMs to domestic dealers and fabricators. Currently, the company can forge parts with an input weight of up to 40 kg, and it aims to improve its production and product portfolios by modernizing existing plants and facilities as well as installing new production lines.
Company Strategy
Kross Limited’s strategy aims to increase the production capacity and product portfolio to meet demand in the tractor, trailer axle, and commercial vehicle market segments that are experiencing growth at present. The company is involved in actively acquiring new production technologies to enhance its manufacturing operation and increase efficiency. It is also associated with expanding the client base, which includes a wide range of target clients, including OEMs, domestic dealers, and fabricators of aluminum products and franchises. Further innovations concerning the company’s activity include M&A, which is more focused on strengthening its position in local and global markets.
Details on IPO Date and Price Band
| IPO Open Date: | September 9, 2024 |
| IPO Close Date: | September 11, 2024 |
| Face Value: | INR 5 Per Equity Share |
| IPO Price Band: | INR 228 to INR 240 Per Share |
| Issue Size: | Approx INR 500 Crores |
| Fresh Issue: | Approx INR 250 Crores |
| Offer for Sale: | Approx 10,416,667 Equity Shares |
| Issue Type: | Book Built Issue |
| IPO Listing: | BSE & NSE |
| Retail Quota: | 35% |
| QIB Quota: | 50% |
| NII Quota: | 15% |
IPO Objective:
The primary aim of Kross Limited’s IPO is to raise capital for its operations, and procurement of machinery and equipment to increase its production capacity. Further, the net proceeds will be used to repay certain existing borrowings from banks and other financial institutions, which decreases the company’s debt. Some portion of the funds will also be used as a working capital of the company to support its operations effectively. Finally, the IPO would also be used to meet general corporate funds to support the overall advancement of the company’s business.
Market Lot Information on Kross Limited IPO
The lot size and corresponding amounts are as follows:
- Retail Minimum: 1 lot (62 shares) for INR 14,880
- Retail Maximum: 13 lots (806 shares) for INR 193,440
- S-HNI Minimum: 14 lots (868 shares) for INR 208,320
- B-HNI Minimum: 68 lots (4,216) for INR 1,011,840
Allotment Dates for Kross Limited IPO
Kross Limited IPO open date is September 9 and the IPO close date is September 11. The IPO allotment date is September 12 and the listing date is September 16.
| IPO Open Date: | September 9, 2024 |
| IPO Close Date: | September 11, 2024 |
| Basis of Allotment: | September 12, 2024 |
| Refunds: | September 13, 2024 |
| Credit to Demat Account: | September 13, 2024 |
| IPO Listing Date: | September 16, 2024 |
Application Process of IPO
The IPO can be accessed by submitting an application through the online ASBA (Application Supported by Blocked Amount) facility from the bank through ‘Internet banking’, going to ‘Invest’, and applying for Kross Limited. On the other hand, the IPO forms are also available for download on the BSE and NSE websites which the candidates can fill and submit.
Financial Analysis of the Company
Financials in INR Crores.
| Year | Revenue | Expense | Profit After Tax | Assets |
| 2022 | 297.88 | 281.57 | 12.17 | 197.82 |
| 2023 | 489.36 | 447.65 | 30.93 | 250.57 |
| 2024 | 621.46 | 560.17 | 44.88 | 352.00 |
Kross Limited’s financial performance has shown consistent growth over the past three years. Revenue increased from INR 297.88 crores in 2022 to INR 621.46 crores in 2024, reflecting a strong upward trajectory. Profit after tax also saw significant improvement, rising from INR 12.17 crores in 2022 to INR 44.88 crores in 2024. Meanwhile, the company’s assets grew from INR 197.82 crores to INR 352.00 crores, indicating robust expansion. Expenses have increased proportionally, but profit margins have strengthened, signaling healthy financial management.
IPO Valuation (FY 2024)
The company’s EPS stands at a value of INR 8.30 with a Return on Net Worth (RoNW) of 30.57% and a Net Asset Value (NAV) per share of INR 27.14 in the financial year 2024. The IPO price band ranges from INR 228 to INR 240 per share to raise INR 500 crores to fund capital expenditures, reduce debt, support working capital, and cover general corporate purposes for business growth.
| Earnings Per Share (EPS): | INR 8.30 (Basic) |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 30.57% |
| Net Asset Value (NAV): | INR 27.14 |
Competitor Analysis
Here is the competitor of Kross Limited:
Ramkrishna Forgings Limited
Ramkrishna Forgings Limited is an India-based forging company that was incorporated in 1981 and specializes in the manufacture and supply of forging and machined automotive components for the automotive, railway, and heavy engineering segments. The products manufactured and offered by the company include forgeries including axles, shafts, cranks, and gears. The company has prominent OEMs constituting a robust domestic and International clientèle and possesses fully equipped sophisticated manufacturing plants. The company mainly emphasizes research, operating efficiency, and product development diversification for various industrial segments across the world.
Jamna Auto Industries Limited
Jamna Auto Industries Limited was established in 1954 and is an industry leader in the production of automotive suspension parts with particular emphasis on multi-leaf and parabolic suspension springs used in commercial vehicles. The company has operations both in the national and international markets and distributes its products to leading OEMs and aftermarket segments. Jamna Auto has several plants in India and aims at technological advancement, optimum cost control, and diversification as it plans to address the diversifying automotive market.
Automotive Axles Limited
Automotive Axles Limited was established in 1981 and it is one of the largest automotive axle manufacturers in India, specifically in the commercial vehicle axle and brake system segment. The firm offers various models of rear drive axles, front steer axles, non-drive axles, and both drum as well as disc brakes. Automotive Axles is involved in the manufacturing of axles for commercial vehicles primarily for OEMs located in India and other locations throughout the world; the business unit focuses on manufacturing processes, product development, and diversification of product portfolio to cater to the needs of the expanding commercial vehicle market.
GNA Axles Limited
GNA Axles Limited is one of the leading domestic and export-oriented companies that specializes in producing automotive axles and components. This company is an original equipment manufacturer and aftermarket supplier of rear drive axles, front steer axles, and several other components. GNA Axles runs technologically advanced and efficient plants with an emphasis on research, engineering, and diversification of product ranges to cater to the changing demands of the automotive business.
Talbros Automotive Components Limited
Talbros Automotive Components Limited is an automobile manufacturing company, that was established in 1956, and deals in automotive gaskets, seals, and rubber products. The company offers a broad portfolio of products to OEMs and the aftermarket segment, with a focus on quality and new solutions. As an established automotive company with operating facilities in various Indian states equipped with high technology, Talbros Automotive is focused on diversifying its product line and global market to cover the new emerging trends in the automotive market.
Kross Limited IPO Registrar
KFin Technologies Limited
Website: https://kosmic.kfintech.com/ipostatus/
Offer Lead Manager
Equirus Capital Private Limited
Equirus Capital Private Limited is the leading investment banking company in India which undertakes several activities like mergers and acquisitions, private equity, structured finance, and capital market products. It mainly targets to offer quality services and products to various clients such as corporate, and institutional clients as well as high-net-worth individuals. Equirus Capital focuses on offering efficient solutions in the sphere of financial markets, using profound industry experience, a contacts database, and an understanding of the peculiarities to meet clients’ objectives and enhance business performance.
Conclusion
The initial public offering (IPO) of Kross Limited presents an exciting prospect for investors seeking to leverage the company’s expansion in the commercial vehicle safety components industry. Having raised INR 500 crores to fund its operational growth, pay off debt, and invest in cutting-edge technology, Kross has a strong track record of financial stability, contemporary production capabilities, and a well-defined expansion strategy. Retail and institutional investors have the opportunity to share in the company’s ongoing performance and future market potential through the initial public offering (IPO), which is scheduled to open on September 9 and end on September 11.
