Kross IPO Day 3: Mainboard issue booked nearly 17x on strong demand from QIBs

The initial public offer of auto parts manufacturer Kross Ltd was booked 16.7 times at the end of the subscription process on Wednesday, September 11.

According to the exchange data, the ₹500-crore IPO of Kross Ltd received bids for over 25.66 crore shares against 1,53,50,877 shares on offer for subscription.

Retail Individual Investors (RIIs) portion was booked 10.6 times. Applications for 8.13 crore shares were received against 76,75,439 shares on offer for the category, according to NSE data at 5.00 pm.

Non-Institutional Investors (NIIs) quota was booked 22.2 times as bids for over 7.3 crore shares were received against 32,89,474 shares on offer.

Qualified Institutional Buyers (QIBs) portion was subscribed 23.32 times. Applications for more than 10.22 crore shares were received against 43,85,964 shares on offer for subscription.

Previously, Kross Ltd raised ₹150 crore from anchor investors. The company allotted 62,49,999 shares at a price of ₹240 per share.

Kross IPO details

The IPO of Jamshedpur-based Kross Ltd opened for subscription on September 9 (Monday). The public offer comprised a fresh issue of 1.04 crore equity shares worth ₹250 crore and an Offer-for-Sale (OFS) worth up to ₹250 crore by selling shareholders. Promoter Sudhir Rai divested shares worth ₹168 crore and Anita Rai ₹82 crore through the OFS.

The company fixed the price band at ₹228-240 per share. The minimum lot size was 62 Shares, amounting to an investment of ₹14,880 at the upper price band. Equirus Capital Private Limited is the book-running lead manager for the public offer. Kfin Technologies Limited is the registrar for the Kross IPO.

The company is expected to announce the share allotment status on September 12. Investors can check the allotment status on BSE, NSE and the website of the IPO registrar, Kfin Technologies.

Kross Ltd would initiate refunds and credit of shares to demat accounts on September 13. The company has proposed to list shares on BSE and NSE on September 16.

Kross IPO objective

Kross Ltd has proposed to utilise IPO proceeds from the fresh issue to fund capital expenditure requirements towards the purchase of machinery and equipment. The company will utilise ₹70 crore for this purpose.

With a focus on expanding and growing our manufacturing capabilities to meet the growing requirement in the auto components and aggregate manufacturing sector, the company plans to acquire and equip its existing manufacturing facilities and foundry with a wide range of advanced and diverse machinery, equipment and a crane, according to its RHP.

It has also planned capex for the expansion of axle beam extrusion and backward integration into seamless tubes at its new manufacturing facility.

The company will use ₹90 crore of IPO proceeds to prepay or repay, in full or in part, all or a portion of certain outstanding borrowings availed from banks and financial institutions. As of June 30, 2024, its total outstanding borrowings (excluding vehicle loans) amounted to ₹1,28.63 crore.

Kross will utilise ₹30 crore from IPO proceeds for funding working capital requirements.

About Kross Ltd

Founded in 1991, Kross is in the business of manufacturing and supplying trailer axle and suspension assembly. It also produces a range of forged and precision machined high-performance safety critical parts for medium and heavy commercial vehicles and farm equipment segments.

The company reported Revenue from operations of ₹620.25 crore for the year ended on March 31, 2024, against ₹488.63 crore in the year-ago period.