Kross Limited, founded in 1994, is a renowned manufacturer specializing in forging components for top OEMs and Tier 1 companies in India. The company produces high-performance and safety-critical components for the commercial vehicle, tractor, and trailer axle industries.

IPO Details

The Kross Limited IPO is a Book Built Issue with a total size of ₹500.00 crores. It includes a Fresh Issue of 10.41 lakh shares valued at ₹250.00 crores and an Offer for Sale of 10.41 lakh shares, also totaling ₹250.00 crores. The subscription period begins on September 9, 2024, and ends on September 11, 2024. Allotments are expected to be finalized by September 13, 2024, with shares listing on the BSE and NSE on September 16, 2024.

The share price band is set between ₹228 to ₹240 per equity share, with a minimum lot size of 62 shares. Retail investors are required to invest a minimum of ₹14,880, while High-Net-Worth Individuals (HNIs) need to invest a minimum of ₹208,320 for 868 shares.

Key Participants

Equirus Capital Private Limited is the book-running lead manager.

KFin Technologies Limited is the registrar for the issue.

Grey Market Premium (GMP)

The Grey Market Premium for the Kross Limited IPO is expected to range between ₹25 to ₹30. This speculative metric is based on the demand and supply in the unregulated market and should be considered for informational purposes only.

Subscription Status

The Kross Limited IPO will open for subscription on September 9, 2024. Live updates on subscription status will be available from the opening date.

Allotment Status

The IPO allotment date is September 13, 2024. To check your allotment status:

Go to the IPO allotment status page.

Select Kross Limited IPO from the dropdown list.

Enter your application number, PAN, or DP Client ID.

Submit to view your status.

Use of IPO Proceeds

The proceeds from the Fresh Issue will be allocated as follows:

₹700.00 million for purchasing machinery and equipment.

₹900.00 million for repaying outstanding borrowings.

₹300.00 million for funding working capital requirements.

General corporate purposes.

Financial Performance and Valuation

Kross Limited has shown substantial financial growth:

Revenue increased from ₹2,978.81 million in FY22 to ₹6,214.64 million in FY24.

EBITDA rose from ₹295.48 million in FY22 to ₹807.58 million in FY24.

PAT grew from ₹121.69 million in FY22 to ₹448.81 million in FY24.

For this IPO, the pre-issue EPS is ₹8.30 with a pre-issue P/E ratio of 28.91x, and the post-issue EPS is ₹6.59 with a post-issue P/E ratio of 34.53x. These ratios are higher than the industry average P/E ratio of 24.85x, indicating the IPO is fairly priced.

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Expert Opinion

Given the financial performance and valuation of the IPO, the Grey Market Premium suggests potential listing gains of 10% - 13%. However, considering the high valuation, it is advised to approach the Kross Limited IPO with caution. For those looking for listing gains or long-term investment, this IPO might not be the best opportunity.

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