Kross Limited

About Kross Limited  Incorporated in 1991, Kross Limited is a prominent manufacturer of trailer axles and suspension assemblies in India. It offers safety-critical parts and caters to medium and heavy commercial vehicles (M&HCV) and farm equipment segments.  Its product portfolio includes axle shafts, companion flanges, anti-roll bars, stabiliser bar assemblies, suspension linkages, differential spiders, bevel gears, planet carriers, inter-axle kits, rear-end spindles, pole wheels, and a wide variety of tractor components for the hydraulic lift arrangement, power take-off (PTO) shafts, and front axle spindles.  It has served over 200 customers in the last three fiscal years. Some of its long-term customers include Ashok Leyland, Tata International DLT, and Leax Falun AB.  It operates five manufacturing facilities in Jamshedpur and Jharkhand and has warehousing facilities in Rajasthan, Uttarakhand, Tamil Nadu, Punjab, and Maharashtra. Its business is also backward integrated with design, process engineering, forging, casting, and machining capabilities. This allows it greater control over processes, timelines, pricing, and quality.  Between FY22 and FY24, the company saw a 27% CAGR rise in its revenue from operations and 54.5% in its profit. Moreover, domestic commercial vehicle sales are projected to rise at a CAGR of 3-5% for the M&HCV segment, which could benefit the company.  And now, Kross Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹500 crore, comprising fresh issue aggregating to ₹250 crore, as well as an offer for sale, aggregating to ₹250 crore. The money raised from the fresh issue will be utilised to fund capital expenditure requirements, repay borrowings, fund working capital requirements, and for general corporate purposes. Its shares will be listed on the NSE and BSE.  Here are key details about the Kross Limited IPO:     Company Name  Kross Limited   Company Type  Private    Company Established On  1991   Kross Limited IPO Opening Date  9th September 2024    Kross Limited IPO Closing Date  11th September 2024   Kross Limited IPO Allotment Status  12th September 2024    Credit of Shares to the Demat Account  13th September 2024   Kross Limited IPO Listing Date  16th September 2024    Kross Limited IPO Face Value  ₹ 5 per share   Kross Limited IPO Lot Size  62 shares    Kross Limited IPO Issue Size  Approx ₹500 crore   Kross Limited IPO to be Listed on  BSE, NSE    Kross Limited IPO Price band  ₹ 228 – ₹ 240 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Revenue  ₹ 297 crore  ₹ 488 crore  ₹ 620 crore    Net Profit/Loss  ₹ 12.1 crore  ₹ 30.9 crore  ₹ 44.8 crore              Here’s a quick look at Kross Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   It has a long-standing relationship with large OEMs such as Ashok Leyland Limited, with whom it has been associated for more than 18 years.  Widely recognised as one of the prominent manufacturers of trailer axles and suspension assemblies in India, with a manufacturing capacity of 60,000 trailer axles and suspension assemblies per annum as of 30 June 2024.  Diversified product portfolio with a focus on continuous value addition as it has manufactured new products such as trailer axle, air suspension, mechanical suspension, input and output shafts, planet carriers, anti-roll bars, spline journals and universal cross for exports in the last four fiscals.  Integrated manufacturing operations are equipped with computer-aided design and manufacturing packages, as well as software packages to create 3D models and simulation software.  Track record of growth with EBITDA margins of 9%, 11%, and 13% in FY22, FY23, and FY24, respectively.   Risks and threats   Losing a major customer might adversely affect its business, as 66% of its revenue from operations came from its top 5 customers in FY24.  Dependent on the M&HCV and farm equipment industry, which is exposed to risks such as government policies, changes in consumer demand, fuel prices, vehicle electrification, economic conditions, demographic trends, employment and income levels, and interest rates.  All of its manufacturing facilities are located in Jamshedpur, Jharkhand, which exposes it to risks related to geographical concentration.  As of FY24, it sources 40% of its raw materials from its top 3 suppliers and does not have long-term contracts with any of them.  Subject to various laws and regulations, including environmental, health and safety laws and regulations, exposing it to increased compliance costs.            Kross Limited IPO details  | Kross Limited IPO date  According to the offer document filed by the company with the SEBI, the Kross IPO’s opening date – in other words, the Kross IPO launch date – will be 9th September 2024. The Kross IPO closing date is 11th September 2024. After this, investors will be updated about the allotment status on 12th September 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 13th September 2024. The Kross IPO listing date is 16th September 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | Kross Limited IPO Price Band  The IPO is a fresh issue and an offer for sale. The Kross IPO price band has been set between ₹228 and ₹240 per share. Interested investors can choose a price within this band to apply for the IPO.  The Kross IPO listing price will be determined on 16th September 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Kross Limited IPO Lot size  The Kross IPO details have been declared. The Kross IPO lot size is set at 62 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Kross IPO issue size is approx ₹500 crore.          How to pre-apply for the Kross Limited IPO?  You can pre-apply for the Kross Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Kross Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Kross Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Kross Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Kross Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Kross Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Kross Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Kross Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Kross Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Kross Limited IPO  To apply for the Kross Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Kross Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Kross Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.