Muted Market Debut: Kross Shares List at ₹240 on NSE, BSE, Matching IPO Price | Indian Stock Markets
Kross shares had a quiet debut today, listing at ₹240 on both the NSE and BSE, which is the same as the IPO price.
The IPO, valued at ₹500 crore, was open for subscription from September 9 to September 11, 2024, with a price range of ₹228-240 per share.
The IPO received strong interest, being oversubscribed 17.66 times. A total of 25.75 crore equity shares were bid for, compared to the 1.45 crore shares available. Retail investors bid 11.26 times more than the shares reserved for them, while the Non-Institutional Investors (NII) category was subscribed 23.40 times. The Qualified Institutional Buyers (QIB) portion saw a subscription of 24.55 times.
IPO Details
The Kross IPO included a fresh issue of 1.04 crore shares, raising ₹250 crore, and an offer for sale of 1.04 crore shares worth ₹250 crore. Sudhir Rai and Anita Rai are the company’s promoters, as noted in the DRHP.
Retail investors could buy a minimum of 62 shares, with the smallest investment starting at ₹14,880.
The company plans to use the money raised for several purposes, such as buying new machinery, repaying loans, supporting working capital needs, and general corporate expenses.
Equirus Capital Private Limited was the lead manager for the IPO, and Kfin Technologies Limited acted as the registrar.
About the Company
Founded in 1991, Kross Limited (formerly Kross Manufacturers India Private Limited) manufactures and supplies trailer axles, suspensions, and precision parts for medium and heavy-duty commercial vehicles (M&HCV) as well as agricultural equipment. Their products include axle shafts, suspension parts, bevel gears, and tractor components like PTO shafts and front axle spindles.
Kross Limited serves major original equipment manufacturers (OEMs) in the M&HCV and tractor industries, as well as domestic dealers and trailer axle manufacturers. In the fiscal year 2024, the company reported a 45.1% increase in net profit, reaching ₹44.9 crore, while revenue grew by 27% to ₹620.3 crore. EBITDA rose by 40.4% to ₹80.8 crore, with the margin improving by 120 basis points to 13%.
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