Kross IPO to open on September 9: Key dates, strengths, risks, financials, and more

Kross IPO: Auto parts manufacturer Kross's initial public offering (IPO) will open for subscription on September 9. The issue, which has set a price band of ₹228-₹240 per share, will conclude on September 11.

The bidding for anchor investors will be live for a day on September 6.

The ₹500-crore IPO is a mix of a fresh issuance of shares worth ₹250 crore and an offer for sale (OFS) component of ₹250 crore by promoters.

Under the OFS, promoters Sudhir Rai and Anita Rai will be offloading stakes worth ₹168 crore and ₹82 crore, respectively.

The money raised will be used to purchase machinery and equipment, repay debt, fund working capital requirements and general corporate purposes.

Bids can be made for at least 62 shares and multiples afterwards.

Kross IPO: Timeline

• Subscription period: September 9 to September 11
• Basis of allotment: September 12
• Initiation of refunds: September 13
• Credit of shares: September 13
• Listing on NSE and BSE: September 16

Kross IPO: Strengths

• Long-standing relationship with original equipment manufacturers (OEMs) and their tier-one suppliers, dealers and fabricators.
• The company is one of India's key manufacturers of trailer axles and suspension assemblies.
• Diversified product portfolio
• Integrated manufacturing operations complemented by in-house product and process design capabilities
• Experienced promoters
• Track record of sustained business growth and robust financial performance in the last three fiscals

Kross IPO: Risks and threats

• Customer concentration risk as the company's top five clients contributed more than 66% in the previous three fiscals.
• Demand for its products is linked to growth and trends in sales of vehicles.
• A portion of the company's revenue is derived from selling trailer axle and suspension assemblies for medium and heavy vehicles. Any reduction in demand for these key products or shift to renewable/green energy would affect revenue.
• Any shutdown of manufacturing facilities due to unforeseen events can reduce sales and adversely affect business.

Kross IPO: Financials

Kross reported a 26.9% increase in its revenue from operations to ₹620.2 crore in the financial year 2023-24, compared to ₹488.6 crore in the year-ago period.

The net profit rose 44.9% to ₹44.8 crore in FY24 as against ₹30.9 crore in the corresponding period last year.