The Kross Limited IPO, a company that makes trailer axles and suspension assemblies, opens for subscription today, September 9, and will close on September 11. Kross is well-established in the industry, offering a variety of forged products for farm equipment and medium- to heavy-duty commercial vehicles.
Key details about the Kross IPO
Half of the IPO is reserved for Qualified Institutional Buyers (QIBs), 35% for retail investors, and 15% for Non-Institutional Investors (NIIs). The company has shown strong financial growth, with a 45.1% rise in net profit to ₹44.9 crore in the 2024 fiscal year. Its revenue also grew by 27%, reaching ₹620.3 crore.
Kross IPO recommendations
SBI Securities recommends subscribing to the IPO for long-term investment due to the company’s strong growth record. They believe the price is fair and the company shows promise. Similarly, Deven Choksey Research also recommends subscribing, highlighting the company’s strong growth and competitive advantage. They mention that Kross is expected to trade at a PE multiple of 34x at the upper price band, making it attractive compared to its peers.
IPO specifics
The Kross IPO is a book-built issue valued at ₹500 crore. It consists of a fresh issue of ₹250 crore worth of shares and an offer for sale worth another ₹250 crore. The price band is set between ₹228 and ₹240 per share, with a face value of ₹5 per share.
The company plans to use around ₹90 crore from the proceeds to repay debt, ₹70 crore for capital expenditures (mainly for purchasing machinery and equipment), and ₹30 crore for working capital. The allotment of shares is expected by September 12, and the shares are scheduled to be listed on the NSE and BSE on September 16.
Grey Market Premium (GMP)
As per market trends, the shares are trading at a premium of ₹50. This suggests that the IPO could list at around ₹290, which is 20.83% higher than the upper price band of ₹240. The grey market premium shows that investors are willing to pay more than the issue price.
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