Kross Limited has opened its Initial Public Offering (IPO) for subscription starting September 9, 2024, with the bid window closing on September 11, 2024. The IPO consists of both a fresh issue of Rs 250 crore and an offer-for-sale of Rs 250 crore, making the total issue size Rs 500 crore.
Key Details of the Kross Limited IPO:
- Price Band: Rs 228 to Rs 240 per share.
- Lot Size: 62 shares, meaning retail investors must bid for at least one lot worth Rs 14,880.
- Subscription Period: September 9 to 11, 2024.
- Listing Date: The shares will be listed on the NSE and BSE on September 16, 2024.
Company Background:
Kross Limited specializes in the manufacturing of trailer axles, suspension assemblies, and precision components for medium and heavy commercial vehicles (M&HCV) as well as farm equipment. The firm has a strong financial record, with revenue growing from Rs 488.63 crore in FY23 to Rs 620.25 crore in FY24. Its profit after tax increased from Rs 30.93 crore to Rs 44.88 crore in the same period, showing healthy growth.
Financial Highlights:
- Revenue: Rs 620.25 crore in FY24.
- Net Profit: Rs 44.88 crore in FY24.
- Earnings Per Share (EPS): Rs 0.83.
Investment Insights:
The IPO is gaining attention with a Grey Market Premium (GMP) of 19-20%, indicating average returns post-listing. Analysts are generally positive about the long-term prospects of Kross, with recommendations from SBI Securities and Deven Choksey Research advising a “Subscribe” rating. The IPO proceeds will primarily fund capital expenditure, debt repayment, and general corporate needs.
This IPO could be a good opportunity for investors interested in the commercial vehicle and farm equipment sectors. However, potential investors should evaluate their risk tolerance given the market conditions and the industry’s competitive landscape.
Disclaimer
