Kross IPO Opens Today: Price Band, GMP, and Subscription Details

Kross IPO

The initial public offering (IPO) of Kross Limited, a manufacturer of trailer axles and suspension assemblies, opens today, September 9, and will remain open for subscription until September 11. Here’s everything you need to know about the IPO:

Kross IPO Key Details

Price Band: ₹228 to ₹240 per share
Lot Size: Minimum of 1,000 shares
Total Issue Size: ₹500 crore
- Fresh Issue: ₹250 crore (1.04 crore shares)
- Offer for Sale (OFS): ₹250 crore (1.04 crore shares)
Face Value: ₹5 per share
Allocation:
- 50% reserved for Qualified Institutional Buyers (QIBs)
- 35% reserved for Retail Investors
- 15% reserved for Non-Institutional Investors (NIIs)

Financial Performance

In the fiscal year 2024, Kross reported:

Net Profit: ₹44.9 crore (45.1% increase YoY)
Revenue: ₹620.3 crore (27% increase YoY)

IPO GMP (Grey Market Premium)

The Kross IPO is currently trading at a premium of ₹50 in the grey market, suggesting an estimated listing price of ₹290 per share, which is approximately 20.83% higher than the upper price band of ₹240.

Utilization of Proceeds

Debt Repayment: ₹90 crore
Capital Investments: ₹70 crore (for machinery and equipment)
Working Capital Requirements: ₹30 crore

Subscription Recommendations

SBI Securities: Recommends subscribing for the long term, noting that the IPO appears fairly valued considering Kross’s healthy growth track record.

Deven Choksey Research: Also assigns a ‘subscribe’ rating, highlighting the company’s strong financial performance, high return ratios, and competitive positioning. The expected adjusted PE multiple is 34x at the upper price band.

Listing Details

Allotment Date: September 12, 2024
Listing Date: September 16, 2024
Exchanges: NSE and BSE

Book-Running Lead Manager: Equirus Capital Private Limited
Registrar: Kfin Technologies Limited

Kross Limited’s IPO is attracting positive attention with a good grey market premium indicating strong investor interest. Given the company’s robust financials, growth prospects, and strategic use of IPO proceeds, subscribing to the IPO may be beneficial for both short-term gains and long-term investment.

Also read: Bajaj Housing Finance IPO Opens Today: Should You Subscribe?

Priyanka Koul