Kross Limited was Established in the year 1994. The company manufactures a wide variety of high-performance, vital safety components for the tractor, trailer axle, and commercial vehicle industries. They employ innovative machinery including upsetters, forging presses, precision machining tools, foundries, and specialized software for custom services at their five manufacturing facilities in Jamshedpur, Jharkhand.
The company supplies its products to a diversified client base, including large original equipment manufacturers (OEMs), domestic dealers, and fabricators. Currently, the company manufactures a large variety of components and has the capacity to manufacture forged parts of up to 40 kg input weight. It is expanding its capacity and increasing product offerings through the expansion of existing facilities and the addition of further production lines.
Kross IPO is a book built issue of Rs. 500.00 crores. The issue is a combination of fresh issue of 1.04 crore shares aggregating to Rs. 250.00 crores and offer for sale of 1.04 crore shares aggregating to Rs. 250.00 crores. Kross IPO opens for subscription on September 9, 2024 and closes on September 11, 2024. The allotment for the Kross IPO is expected to be finalized on Thursday, September 12, 2024. Kross IPO will list on BSE, NSE with tentative listing date fixed as Monday, September 16, 2024.
Kross IPO Timeline
| IPO Open Date | Monday, September 9, 2024 |
| IPO Close Date | Wednesday, September 11, 2024 |
| Basis of Allotment | Thursday, September 12, 2024 |
| Initiation of Refunds | Friday, September 13, 2024 |
| Credit of Shares to Demat | Friday, September 13, 2024 |
| Listing Date | Monday, September 16, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 11, 2024 |
Kross IPO price band is set at ₹228 to ₹240 per share. The minimum lot size for an application is 62 Shares. The minimum amount of investment required by retail investors is ₹14,880. The minimum lot size investment for sNII is 14 lots (868 shares), amounting to ₹208,320, and for bNII, it is 68 lots (4,216 shares), amounting to ₹1,011,840.
Kross IPO Details
| IPO Date | September 9, 2024 to September 11, 2024 |
| Listing Date | [.] |
| Face Value | ₹5 per share |
| Price Band | ₹228 to ₹240 per share |
| Lot Size | 62 Shares |
| Total Issue Size | 20,833,334 shares (aggregating up to ₹500.00 Cr) |
| Fresh Issue | 10,416,667 shares (aggregating up to ₹250.00 Cr) |
| Offer for Sale | 10,416,667 shares of ₹5 (aggregating up to ₹250.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 54,092,756 |
| Share holding post issue | 64,509,423 |
Kross IPO Lot Size
Investors can bid for a minimum of 62 shares and in multiples thereof. The below table depicts the minimum and maximum investment by retail investors and HNI in terms of shares and amount.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 62 | ₹14,880 |
| Retail (Max) | 13 | 806 | ₹193,440 |
| S-HNI (Min) | 14 | 868 | ₹208,320 |
| S-HNI (Max) | 67 | 4,154 | ₹996,960 |
| B-HNI (Min) | 68 | 4,216 | ₹1,011,840 |
Kross Limited – Strength and Weakness
| Strength | Weakness |
| Kross Ltd has longstanding relationships with large OEMs and their tier-one suppliers, domestic dealers and fabricators for the trailer axle and suspension business. These relationships are complemented by a diversified network of dealers for their trailer axle and suspension assembly business. | The company’s top five customers contributed more than 68% of revenue in the previous three fiscals. The loss of a major customer or reduction in demand from them may adversely affect the business. |
| They have experienced robust growth in the past 3 years, allowing them to be recognised as a major player in the field of trailer axle and suspension manufacturing in India. | All of their five manufacturing facilities are situated at Jamshedpur, Jharkhand. Any issues in the region can disrupt the supply chain of the company entirely. |
